Economic Analysis for Management: MBA 701
CHAPTER ONE: VOCABULARY DEFINITIONS
TEXTBOOK: MANAGERIAL ECONOMICS: TOOLS FOR ANALYZING BUSINESS
STRATEGY BY THOMAS J. WEBSTER, ISBN 978-1-4985-0793-6
CHAPTER ONE: MANAGERIAL ECONOMICS AND STRATEGY
DEFINITION:THE FOUR P’S
1. PRODUCT
2. PRICE
3. PLACE
4. PROMOTION
DEFINITION: ECONOMICS: THE STUDY OF HOW INDIVIDUALS, INSTITUTIONS,
COMMERCIAL ENTERPRISES, COUNTRIES, AND GOVERNMENTS ALLOCATE
SCARCE RESOURCES AMONGST COMPETING USES.
DEFINITION: SCARCITY: THE OUTPUT OF GOODS AND SERVICES IS LIMITED
BECAUSE THE SUPPLY OF PRODUCTIVE INPUTS AND OTHER RESOURCES
NEEDED FOR THEIR PRODUCTION IS FINITE.
DEFINITION: OPPORTUNITY COST: THE HIGHEST-VALUED ALTERNATIVE
FOREGONE WHENEVER A CHOICE IS MADE.
DEFINITION: MANAGERIAL ECONOMICS: THE APPLICATION OF ECONOMIC
PRINCIPLES TOPICS OF CONCERN TO MANAGERS. MANAGERIAL ECONOMICS
COMBINES THE VARIOUS BUSINESS DISCIPLINES (ACCOUNTING, FINANCE,
MARKETING, MANAGEMENT)
DEFINITION: STRATEGIC BEHAVIOR: DECISIONS MADE BY AN INDIVIDUAL OR
GROUP CENTRAL TO THE STUDY OF MANAGERIAL ECONOMICS.
DEFINITION: GAME THEORY: THE STUDY OF STRATEGIC BEHAVIOR. A TOOL KIT
FOR ANALYZING SITUATIONS INVOLVING MOVE AND COUNTERMOVE.
DEFINITION: QUANTITATIVE METHODS: MATHEMATICAL TOOLS AND
TECHNIQUES OF ANALYSIS, INCLUDING OPTIMIZATION ANALYSIS, STATISTICAL
METHODS, FORECASTING, AND GAME THEORY.
CHAPTER ONE: VOCABULARY DEFINITIONS
TEXTBOOK: MANAGERIAL ECONOMICS: TOOLS FOR ANALYZING BUSINESS
STRATEGY BY THOMAS J. WEBSTER, ISBN 978-1-4985-0793-6
CHAPTER ONE: MANAGERIAL ECONOMICS AND STRATEGY
DEFINITION:THE FOUR P’S
1. PRODUCT
2. PRICE
3. PLACE
4. PROMOTION
DEFINITION: ECONOMICS: THE STUDY OF HOW INDIVIDUALS, INSTITUTIONS,
COMMERCIAL ENTERPRISES, COUNTRIES, AND GOVERNMENTS ALLOCATE
SCARCE RESOURCES AMONGST COMPETING USES.
DEFINITION: SCARCITY: THE OUTPUT OF GOODS AND SERVICES IS LIMITED
BECAUSE THE SUPPLY OF PRODUCTIVE INPUTS AND OTHER RESOURCES
NEEDED FOR THEIR PRODUCTION IS FINITE.
DEFINITION: OPPORTUNITY COST: THE HIGHEST-VALUED ALTERNATIVE
FOREGONE WHENEVER A CHOICE IS MADE.
DEFINITION: MANAGERIAL ECONOMICS: THE APPLICATION OF ECONOMIC
PRINCIPLES TOPICS OF CONCERN TO MANAGERS. MANAGERIAL ECONOMICS
COMBINES THE VARIOUS BUSINESS DISCIPLINES (ACCOUNTING, FINANCE,
MARKETING, MANAGEMENT)
DEFINITION: STRATEGIC BEHAVIOR: DECISIONS MADE BY AN INDIVIDUAL OR
GROUP CENTRAL TO THE STUDY OF MANAGERIAL ECONOMICS.
DEFINITION: GAME THEORY: THE STUDY OF STRATEGIC BEHAVIOR. A TOOL KIT
FOR ANALYZING SITUATIONS INVOLVING MOVE AND COUNTERMOVE.
DEFINITION: QUANTITATIVE METHODS: MATHEMATICAL TOOLS AND
TECHNIQUES OF ANALYSIS, INCLUDING OPTIMIZATION ANALYSIS, STATISTICAL
METHODS, FORECASTING, AND GAME THEORY.
