Production and Costs

at
Categories
Tags

 

 

 

 

 

Course Description
This course provides a solid foundation of economic principles to support managerial decision making. Topics include cost-benefit analysis, demand estimation and forecasting, decision making under risk and uncertainty, production and cost analysis, and market structure analysis.
Case Background:
All businesses need to make decisions about how much to spend on equipment, how many people to hire, etc. as well as decide how much to produce. In making these decisions, managers must take into account some fundamental principles of economics. For example, when deciding whether or not to produce one more unit, it is not necessarily the total production cost that you need to consider. Instead, the concept of marginal analysis is employed. This entails looking at how much it costs to produce one more unit – or the marginal cost. Other important concepts of this module include fixed costs, variable costs, and the law of diminishing marginal returns.

 

 

 

 

Significance of the Course within the Program
This course will either implicitly or explicitly address the following program outcomes:
• Identify and apply appropriate quantitative and qualitative business models to evaluate business performance and solve complex organizational problems.
• Generate business plans at the corporate, business unit, and functional levels.
• Conduct business research by finding, collecting, analyzing, and evaluating business data.
• Evaluate information consisting of multiple perspectives, conflicting evidence, competing interests and priorities, and risk, to determine an optimal course of action.
• Generate oral/written presentations in various business formats (e.g., memos, reports, PowerPoint, spreadsheets, charts/graphs).
• Apply a system’s perspective to improve, integrate, and align business functions with organizational strategy.
• Demonstrate ethical and reasoned decision making and action in all facets of organizational management.
Course Overview
BUS530 is designed to expose students to the main issues in managerial economics. Managers in the business world need to make vital decisions, such as what price to charge, how much to produce, how many employees to hire, etc., that can make or break the company. Optimizing these decisions is complex, because this may depend not only on the internal nature of the firm, but also the nature of the market and competitors. We will learn specific decision-making tools such as marginal analysis and game theory, and also cover in detail the different types of industrial structures and their implications for firm strategy.
This course begins explaining the classical demand and supply model of price determination and the associated concept of price elasticity of demand, which plays an important role in the decision-making process of firms (Module 2: Production and Costs)
Modular Learning Outcomes
Case
• Understand and apply the distinction between fixed and variable costs.
• Understand and apply marginal analysis to production decisions.
• Graph economic data using Microsoft Excel.
Required Material

Sample Solution

place in France and England during the French Revolution. Charles Dickens demonstrates how Sydney Carton makes his decisions based on love for the benefit of others and himself and Madame Defarge makes her decisions based on hate which causes the pain and sorrow of many people. Dickens suggests that love overpowers hate because in the end those who acted on hate don’t have happy endings. Sydney Carton shows his unselfish love through his sacrifice for others; he loves the Manette family so much that he will give up his life for theirs. Sydney once says to Lucie “For you, and for any dear to you, I would do anything. I would embrace any sacrifice for you and for those dear to you. And when you see your own bright beauty springing up anew at your feet, think now and then that there is a man who would give his life, to keep a life you love beside you” (157). He lives up to what he says because later in the story he sacrifices his life so that Lucie could be with her husband Charles Darnay. He knew that Charles is what made Lucie happy and he wanted her to be happy. Sydney loves Lucie so much that he accepts the fact that she would never marry him and instead is happy that she is with Charles. He is a selfless man that is always thinking about others and never himself. Sydney was not always this way though. There was a time when he was always very depressed. Towards the beginning of the novel Sydney and Charles go out for a couple drinks and Sydney says “I am a disappointed drudge, sir. I care for no man on earth, and no man on earth cares for me” (102). He is disappointed not with himself but those around him. He drinks to solve his problems which doesn’t actually do much for him. He was a man that didn’t care about anybody including himself. Later on in the story this problem is solved because of his love for Lucie. He begins to deeply care about others especially the Manettes. In conclusion, Sydney is a selfless man that sacrifices himself for benefit of others. In contrast to Sydney Carton, Madame Defarge acts on h

This question has been answered.

Get Answer