Chapter 1 - Introduction to economic decision making. In this chapter, we begin our study of managerial economics by stressing decision-making applications. In the first section, we introduce seven decision examples, all of which we will analyze in detail later in the text.
Trang 1Managerial Economics, 8e William F. Samuelson Stephen G. Marks ●
Chapter one
Introduction to
Economic Decision
Making
Trang 2 The crucial step in tackling almost all important business and government decisions begins with a single
question: What is the alternative?
Trang 3SEVEN EXAMPLES OF MANAGERIAL DECISIONS
Multinational Production and Pricing
Market Entry
Building a New Bridge
A Regulatory Problem
BP and Oil Exploration Risks
An R & D Decision
Trang 4Step 1: Define the Problem
Step 2: Determine the Objective
Step 3: Explore the Alternatives
Step 4: Predict the Consequences Models Step 5: Make a Choice
Step 6: Perform Sensitivity Analysis
Trang 5The Basic Steps in decision making
Trang 6Private and Public decisions:
An Economic View
Business Behavior — Maximizing Value
Lower Drug Prices in Africa
Public Decisions
Behavioral Economics
Things to Come
Trang 7topics in managerial economics