SUGGESTED WAYS TO USE THE SITUATIONS AND SOLUTIONS
Instructors will probably have their own approaches to using the situations and solutions
presented in each chapter. However, we have several suggestions for doing so.
First, the situation may be used as a way of introducing the general theme of the chapter.
Instructors could draw on recent or past examples of the general theme from a variety of
industries. Consider the following examples:
In Chapter 1, instructors could bring in the example of the challenges faced by Coca-
cola from about 2004 to 2008 in trying to build their business in the face of strong
competition from Pepsi and changing tastes and preferences among consumers. This
challenge is actually discussed in Chapter 15 of this book. Other real examples of
companies going into related segments of their industries (i.e. the case of Quaker Oats
and Snapple) could also be used. Another example is the consideration made by
Cadbury-Schweppes (during the 2007-08 time period) to divest all or parts of their
business. For example in May 2008 a rumor was circulating that Coke was considering
the purchase of Cadbury-Schweppes Australia.
In Chapter 3, instructors could discuss the recent increases in the world price of corn
and its impact on high fructose corn syrup, a major ingredient in carbonated soft
drinks.
Second, instructors could ask students to provide their own “solutions” to different
situations. This could involve entirely different numerical examples or alternatives for
classroom discussion.
A third approach has been used with great success by one of the instructors who adopted
the first edition of our text. She asked her undergraduate students to play the roles of the
different characters in the situation. One variation of this is to ask them to act out the dialog
and perhaps embellish it with their own “voicings.” Another variation is to ask them to
create their own dialog and present their own issues and interpretation. In effect, students
would be asked to “script” their own reality show. A third variation, probably more
effective among MBA students or non-traditional students with business experience, would
be to ask students to compare and contrast the situations and solutions with their own
,experiences. They might have their own examples of the economic concepts discussed in
the situations based on the industries and companies in which they have worked.
, REVIEW OF MATHEMATICAL CONCEPTS USED IN
MANAGERIAL ECONOMICS
(*NOTE: THIS CHAPTER IS NOT IN THE TEXT. IT CAN BE FOUND ON THE
COMPANION WEBSITE WWW.PRENHALL.COM/KEAT)
Questions
1. Function: The relationship between a dependent variable and one (or more)
independent variables.
Variable: An entity that can assume different values
Independent Variable: Variable whose value is determined independently of the value
of any other variable being considered in a functional relationship.
Dependent Variable: Variable whose value depends on the value of some other
(independent) variable.
Functional Form: The particular way in which the value of a dependent variable is
affected by the value of one or more independent variables.
2. Assume the following demand equation: QD = 250 - 10P. Given this linear equation, we
can express demand tabular form as follows:
P Q
$25 0
, 20 50
15 100
10 150
5 200
0 250
We can also plot this on a graph with P on the vertical axis (as is usually done in
economics) or on the horizontal axis (as would be the case according to mathematical
convention).
250
200
150
Q Q = 250 - 10P
100
50
0
0 5 10 15 20 25
P
Figure 1
25
20
15
P P = 25 - .1Q
10
5
0
0 50 100 150 200 250
Q
Figure 2
3. The following are suggested ways to answer this question. Instructors may wish to
devise their own equations.
Instructors will probably have their own approaches to using the situations and solutions
presented in each chapter. However, we have several suggestions for doing so.
First, the situation may be used as a way of introducing the general theme of the chapter.
Instructors could draw on recent or past examples of the general theme from a variety of
industries. Consider the following examples:
In Chapter 1, instructors could bring in the example of the challenges faced by Coca-
cola from about 2004 to 2008 in trying to build their business in the face of strong
competition from Pepsi and changing tastes and preferences among consumers. This
challenge is actually discussed in Chapter 15 of this book. Other real examples of
companies going into related segments of their industries (i.e. the case of Quaker Oats
and Snapple) could also be used. Another example is the consideration made by
Cadbury-Schweppes (during the 2007-08 time period) to divest all or parts of their
business. For example in May 2008 a rumor was circulating that Coke was considering
the purchase of Cadbury-Schweppes Australia.
In Chapter 3, instructors could discuss the recent increases in the world price of corn
and its impact on high fructose corn syrup, a major ingredient in carbonated soft
drinks.
Second, instructors could ask students to provide their own “solutions” to different
situations. This could involve entirely different numerical examples or alternatives for
classroom discussion.
A third approach has been used with great success by one of the instructors who adopted
the first edition of our text. She asked her undergraduate students to play the roles of the
different characters in the situation. One variation of this is to ask them to act out the dialog
and perhaps embellish it with their own “voicings.” Another variation is to ask them to
create their own dialog and present their own issues and interpretation. In effect, students
would be asked to “script” their own reality show. A third variation, probably more
effective among MBA students or non-traditional students with business experience, would
be to ask students to compare and contrast the situations and solutions with their own
,experiences. They might have their own examples of the economic concepts discussed in
the situations based on the industries and companies in which they have worked.
, REVIEW OF MATHEMATICAL CONCEPTS USED IN
MANAGERIAL ECONOMICS
(*NOTE: THIS CHAPTER IS NOT IN THE TEXT. IT CAN BE FOUND ON THE
COMPANION WEBSITE WWW.PRENHALL.COM/KEAT)
Questions
1. Function: The relationship between a dependent variable and one (or more)
independent variables.
Variable: An entity that can assume different values
Independent Variable: Variable whose value is determined independently of the value
of any other variable being considered in a functional relationship.
Dependent Variable: Variable whose value depends on the value of some other
(independent) variable.
Functional Form: The particular way in which the value of a dependent variable is
affected by the value of one or more independent variables.
2. Assume the following demand equation: QD = 250 - 10P. Given this linear equation, we
can express demand tabular form as follows:
P Q
$25 0
, 20 50
15 100
10 150
5 200
0 250
We can also plot this on a graph with P on the vertical axis (as is usually done in
economics) or on the horizontal axis (as would be the case according to mathematical
convention).
250
200
150
Q Q = 250 - 10P
100
50
0
0 5 10 15 20 25
P
Figure 1
25
20
15
P P = 25 - .1Q
10
5
0
0 50 100 150 200 250
Q
Figure 2
3. The following are suggested ways to answer this question. Instructors may wish to
devise their own equations.
