TERM 1
Managerial Economics
DEFINITION 1
The study of how to direct scarce resources in the way that
most efficiently achieves a managerial goal.
TERM 2
Net Present Value
DEFINITION 2
The present value of the income stream generated by a
project minus the current cost of the project.
TERM 3
Comparative Static Analysis
DEFINITION 3
The study of the movement from one equilibrium to another.
TERM 4
Consumer Surplus
DEFINITION 4
The value consumers get from a good but do not pay for.
TERM 5
Producer Surplus
DEFINITION 5
The amount producers receive in excess of the amount
necessary to induce them to produce the good.
