Business Class

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Part 1

Length: 300400 words

Chapter 1 emphasizes that every choice has a cost, even when no money changes hands.

Choose one of the following managerial areas:

Hiring and staffing

Budget allocation

Time management

Strategic initiatives (projects started, delayed, or abandoned)

In your response:

1. Describe the decision that was made

2. Identify the explicit cost (money, time, resources)

3. Identify the true opportunity cost (what was given up)

4. Explain why managers often fail to recognize opportunity costs

End your assignment with this sentence (completed by you):

The real cost of this decision was not ________, but ________.

Part #2

write a short executive-style memo that answers the following:

Length: 500600 words

1. What is economics from a managers perspective?

(Avoid textbook definitionsexplain it as a decision tool.)

2. Identify a real managerial decision you have made or observed that involved:

o Scarcity

o Trade-offs

o Opportunity cost

3. Explain how economic thinking (as described in Chapter 1) could have:

o Improved the decision, or

o Changed the outcome, timing, or risk

4. Conclude with this sentence, completed in your own words:

The greatest mistake managers make when they ignore economics is ______.

Part #3

1. From a managerial economics perspective, how should policymakers evaluate higher education in prisons as an investment rather than a social program? What costs and returns should be included in this analysis?

2. How does providing associates and bachelors degree programs to incarcerated students contribute to human capital development? Why does human capital matter for long-run economic growth and productivity?

3. Many industries face labor shortages. How could college-educated formerly incarcerated individuals help fill workforce gaps, and what types of industries or roles would benefit the most?

4. Using costbenefit analysis, compare the cost of incarceration without education versus incarceration with access to college programs. Which option is likely to be more efficient in the long run, and why?

5. From the viewpoint of taxpayers and employers, what are the economic benefits of reduced recidivism associated with higher education in prison?

6. What are the opportunity costs of funding higher education for incarcerated students? What alternative uses of these funds might critics argue for, and how would a manager respond to those arguments?

7. Some members of the public argue that it is unfair for incarcerated individuals to receive publicly funded education. How should decision-makers separate emotional arguments from economic efficiency arguments when evaluating this policy?

8. How could employers perceptions and stigma toward formerly incarcerated graduates affect the return on investment of these education programs? What managerial or policy strategies could reduce this risk?

9. If you were advising a state agency, what performance metrics would you recommend to measure the success of prison higher education programs? (Examples: employment rates, earnings, recidivism, tax contributions.)

10. As a manager or policymaker, would you recommend expanding, maintaining, or limiting college-in-prison programs? Defend your recommendation using economic reasoning from the article.

Part #4

1.Why do you think certain sneaker brands, like Jordans and LeBrons, can sell for such high prices, even though the production costs are relatively low?

2. How does scarcity (limited edition releases) influence consumer behavior and drive up the demand for sneakers?

3.What role do athletes and celebrities play in creating demand for specific sneakers, and how does that affect their market value?

4.Why do you think some people are willing to pay double or triple the retail price for sneakers in the resale market?

5. If sneaker companies decided to increase production and make their products less exclusive, how do you think it would impact prices and demand?

part t #5

SECTION II Short Answer (10 points)

5 Questions 2 points each = 10 points

Answer clearly and concisely.

1. Explain why doing nothing is still a decision in economic terms.

2. Distinguish between a movement along the demand curve and a shift of the demand curve.

3. Why should sunk costs not affect future managerial decisions?

4. Why does elasticity matter for pricing strategy?

5. Why can GDP growth occur while an individual firm struggles?

SECTION III Applied MBA Case (10 points)

Case Scenario:

A firm faces rising input costs due to inflation while demand for its product becomes more price-sensitive. Leadership must decide whether to raise prices, cut costs, or invest in productivity improvements.

Answer the following:

a. What is happening on the supply side? (3 points)

b. What does increased price sensitivity imply about elasticity? (3 points)

c. As an executive, which strategic direction would you prioritize and why? Use economic reasoning. (4 points)