ECON 3411 Lecture Notes - Lecture 1: The The

• School: York University
• Department: Economics
• Course: ECON 3411
• Professor: Ying Kong

Document Summary

Managerial economics defined: eco(cid:374)o(cid:373)ics of effecti(cid:448)e ma(cid:374)age(cid:373)e(cid:374)t. Use marginal analysis: lear(cid:374)i(cid:374)g (cid:373)a(cid:374)agerial eco(cid:374)o(cid:373)ics. Introduction: chapter 1 focuses o(cid:374) defi(cid:374)i(cid:374)g (cid:373)a(cid:374)agerial eco(cid:374)o(cid:373)ics, a(cid:374)d illustrati(cid:374)g ho(cid:449) it is a valuable tool for analyzing many business situations, this chapter pro(cid:448)ides a(cid:374) o(cid:448)er(cid:448)ie(cid:449) of (cid:373)a(cid:374)agerial eco(cid:374)o(cid:373)ics. The manager: a perso(cid:374) (cid:449)ho directs resources to achie(cid:448)e a stated goal. Purchases inputs used in the production of the fir(cid:373)"s output. Directs the product price or quality decisions. Economics: the scie(cid:374)ce of (cid:373)aki(cid:374)g decisio(cid:374)s i(cid:374) the prese(cid:374)ce of scarce resources. Resources are anything used to produce a good or service, or achieve a goal. Decisions are important because scarcity implies trade-offs. Managerial economics defined: the study of ho(cid:449) to direct scarce resources i(cid:374) the (cid:449)ay that (cid:373)ost efficie(cid:374)tly achieves a managerial goal. Economics of effective management: basic pri(cid:374)ciples co(cid:373)prisi(cid:374)g effecti(cid:448)e (cid:373)a(cid:374)age(cid:373)e(cid:374)t: Recognize the nature and importance of profits.