Category Archives: Managerial Econ

Here is a precise discussion of the envelope theorem, a staple in optimization theory.

The envelope theorem

On Monday we will have the talk by Ruth Cervantes and Lauren Mish, on Problems 3-18 and 3-19 from chapter 3.  but they bought the old book, so it isn’t the same.

The problems they will be working are here.  Ch 3 Questions for Talk

I suggest you read and try to solve them.  the questions I had suggested were 3-21 and 3-22 from the 4th edition. You could try to work them also.

We will spend most of this week on chapter 4.  I am looking for a team of two to speak on Friday, doing a couple of problems from the end of chapter 4.  If I do not get a volunteer team by email this weekend, I will select a team on Monday at the start of class. 

This week I plan to complete Chapter 3 and Chapter 4.  The key things in Chapter 4 are elasticity, and the idea of modeling demand.  I will show some example spreadsheets on how to determine demand functions.  These are good exercises with using the regression capability in excel.

We will try to work a problem or two also.

Next week on Friday I would like to have a team nominee for the lecture.  You can meet with me and select a problem to work.  It should be from Chapter 3.  If no one volunteers Monday I will simply make the selection, so we can be sure it will happen next Friday.