Module 1 – SLP
THE DEMAND AND SUPPLY MODEL
Managerial economics utilizes tools from economic theory and
econometrics to derive optimal solutions to managerial decision problems.
Read the background material and then write a 3 to 4 page
report describing the diverse tools that managerial economics uses to derive
optimal solutions, i.e., explain, using a variety of examples, the main tools
of economic theory (the theory of markets, the role of prices, and the drive to
profit maximization). Then express your views on the following questions:
Are these concepts, tools and methodologies universal? That
is, do they apply to any institutions? For example, do they apply to the
military? Or to City Hall? If not, should they?
Can a company that operates in the market afford to be
inefficient (i.e., to waste resources)? For how long? What about the military?
Or City Hall? That is, what are the forces and incentives that, in your
opinion, are present in the market and absent in the military and in City Hall?
SLP Assignment Expectations
In the Module 1 SLP Assignment, you are expected to:
Describe the purpose of the paper and provide a conclusion.
Present information in a professional manner.
Answer the SLP Assignment question clearly and provide
necessary details.
Write clearly and correctly—that is, no poor sentence
structure, no spelling and grammar mistakes, and no run-on sentences.
Provide citations to support your argument and place
references on a separate page. (All the sources that you listed in the
references section must be cited in the paper.) Use APA format to provide
citations and references [http://owl.english.purdue.edu/owl/resource/560/01/].
Type and double-space the paper.
Whenever appropriate, please use Excel to show supporting
computations in an appendix, present economic information in tables, and use
the data to answer follow-up questions.
