(BQ) Part 2 book "Managerial economics - A problem solving approach" has contents: Cost estimation, market structure and pricing, game theory, pricing strategy, investment analysis, government and managerial policy. | 7 Cost estimation Outline Objectives Introduction Importance of cost estimation for decision-making Types of cost scenario Methodology page 255 255 256 256 259 260 260 Long-run cost estimation Types of empirical study Problems in long-run cost estimation Different forms of cost function Implications of empirical studies Case study : Banking 265 266 266 268 268 270 The learning curve Types of specification Case study : Airlines Case study : Electricity generation Application of the learning curve Example of a solved problem Implications of empirical studies 271 271 272 273 275 275 276 254 Short-run cost estimation Types of empirical study Problems in short-run cost estimation Different forms of cost function, interpretation and selection Implications of empirical studies A problem-solving approach Examples of solved problems 277 278 263 265 Cost estimation Summary Review questions Problems Notes 280 280 281 282 Objectives 1 To explain the importance of cost estimation for managerial decision-making. 2 To explain the different methods of cost estimation and their relative advantages and disadvantages. 3 To describe the different types of empirical study which are used in cost estimation. 4 To explain the types of problem which are encountered in statistical cost estimation. 5 To explain how these problems apply in different ways to short-run and long-run situations. 6 To explain how these problems can be overcome. 7 To describe and interpret the different types of cost function in mathematical terms. 8 To explain the specification and estimation of the learning curve. 9 To examine and interpret the findings of various empirical studies. Introduction After discussing the theory of demand in Chapter 3 we proceeded to examine the estimation of demand functions in the following chapter. Now that we have discussed the theoretical aspects of production and cost we need to examine the estimation of cost .
