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Managerial Economics in a Global Economy, 5th Edition by Dominick Salvatore

Managerial Economics in a Global Economy, 5th Edition by Dominick Salvatore. Chapter 2 Optimization Techniques and New Management Tools. Expressing Economic Relationships. Equations:. TR = 100Q - 10Q 2. Tables:. Graphs:. Total, Average, and Marginal Cost. AC = TC/Q. MC =  TC/  Q.

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Managerial Economics in a Global Economy, 5th Edition by Dominick Salvatore

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  1. Managerial Economics in a Global Economy, 5th EditionbyDominick Salvatore Chapter 2 Optimization Techniquesand New Management Tools

  2. Expressing Economic Relationships Equations: TR = 100Q - 10Q2 Tables: Graphs:

  3. Total, Average, andMarginal Cost AC = TC/Q MC = TC/Q

  4. Total, Average, andMarginal Cost

  5. Profit Maximization

  6. Profit Maximization

  7. Concept of the Derivative The derivative of Y with respect to X is equal to the limit of the ratio Y/X as X approaches zero.

  8. Rules of Differentiation Constant Function Rule: The derivative of a constant, Y = f(X) = a, is zero for all values of a (the constant).

  9. Rules of Differentiation Power Function Rule: The derivative of a power function, where a and b are constants, is defined as follows.

  10. Rules of Differentiation Sum-and-Differences Rule: The derivative of the sum or difference of two functions U and V, is defined as follows.

  11. Rules of Differentiation Product Rule: The derivative of the product of two functions U and V, is defined as follows.

  12. Rules of Differentiation Quotient Rule: The derivative of the ratio of two functions U and V, is defined as follows.

  13. Rules of Differentiation Chain Rule: The derivative of a function that is a function of X is defined as follows.

  14. Optimization With Calculus Find X such that dY/dX = 0 Second derivative rules: If d2Y/dX2 > 0, then X is a minimum. If d2Y/dX2 < 0, then X is a maximum.

  15. New Management Tools • Benchmarking • Total Quality Management • Reengineering • The Learning Organization

  16. Other Management Tools • Broadbanding • Direct Business Model • Networking • Pricing Power • Small-World Model • Virtual Integration • Virtual Management

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