Managerial Economics Pdf notes – KU Post Graduate Level

Description

LESSON 1: SCOPE AND METHOD OF MANAGERIAL ECONOMICS
LESSON 2: OPTIMIZATION TECHNIQUES
The Break Even Analysis
Linear Cost And Revenue Functions
Cost Functions
Linear Revenue Functions
Optimization Based On Nonlinear Profit Functions

LESSON 3: THE TECHNIQUES OF DETERMINING OPTIMUM VALUES
The Relationship Between Marginal Revenue And Marginal Cost
Optimization Of Multivariate Functions
Constraint Optimization
Solution using the Substitution method
Solution using the Lagrangean multiplier method
The Cobb Douglas Production Function
The Use Of Linear Programing In Solving Optimization Problems
Solution Using The Graphical Method
Solution Using The Simplex Method

LESSON4:  RISK ANALYSIS UTILITY THEORY AND THE USE OF SIMULATION IN DECISION MAKING
Utility Theory And Risk Aversion
The Friedman And Savage Hypothesis
Risk Adjusted Valuation Models
The Certainty Equivalent Approach To Risk Adjustment
The Adjustment In The Dicsount Rate
The Use Of Decision Trees
The Use Of Simulation In Decision Making
Uses Of Simulation In Business Administration
Simulation Procedure

LESSON 5: GAMES OF CHANCE AND THE USE OF QUEUING THEORY IN DECISION MAKING
The Game Theory Terminology
Solution To Games Involving Risk
The Relationship Between Game Theory And The Utility Theory
Methods Of Solving Games Involving Uncertainity
Principles Of Rational Choice
The Two Person Zero Sum Games
Games Without Pure Strategies And Game Dominance
The Dominance Rule
The Collective Bargaining Example
The Mixed Strategy
The Queuing Theory
Economics Of Queue Lines
Waiting Line Characteristics
Distribution Of Arrivals

LESSON 6: THE DEMAND THEORY AND TECHNIQUES OF DEMAND ESTIMATION
The Demand Function
The Industry Versus Firm Demand
The Uses Of The Coefficient Of Elasticity
Direct Vs Derived Demand
The Acceleration Principle
The Identification Problem
Collection Of Primary Data
Type Of Sample Populations
Market Studies And Experiments
Regression Analysis

LESSON 7: PRODUCTION THEORY
The Production Function
`The Marginal Rate Of Substitution
Diminishing Returns To Factor Inputs