Managerial Economics Chapter 8 & 9 Applied Problems

Week Four Assignment: Ch.8 & Ch.9

Keidra Conner

BUS 640 Managerial Economics

October 15, 2012

Ch.8 Applied Problem 2

1. At a management luncheon, two managers were overheard arguing about the following statement: "A manager should never hire another worker if the new person causes diminishing returns." Is this statement correct? If so why? If not, explain why not.

Yes, this statement is correct because in some cases hiring new workers can become negative and cause the marginal product to fall. The text states the managers beyond the point of diminishing returns but not to the point of negative marginal product (Thomas & Maurice, 2011, pp. 296-297).

Ch.9 Applied Problems 2 & 4

1. The largo Publishing House uses 400 printers and 200...