Discussion Question 1 – CLO 1 Please read chapters One

Discussion Question 1 – CLO 1   

Please read chapters One & Two of your textbook and demonstrate your understanding of The Fundamentals of Managerial Economics by answering the following questions:

Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that develops applications for smartphones. Based on market research, she can sell about 50,000 units during the first year at a price of $4 per unit. With annual overhead costs and operating expenses amounting to $145,000. Jamie expects a profit margin of 20 percent. This margin is 5 percent larger than that of her largest competitor, Apps, Inc. 

  • If Jamie decides to embark on her new venture, what will her accounting costs be during the first year of operation?
    • Her company’s implicit costs? 
    • Her company’s opportunity costs? 
  • Suppose that Jamie’s estimated selling price is lower than originally projected during the first year. How much revenue would she need in order to earn:
  • Positive accounting profits? 
  • Positive economic profits

Note: 

1. Define the words in your own words. Do not directly quote from the textbook.

2. Need to write at least 2 paragraphs

3. Need to include the information from the textbook as the reference.

4. Need to include at least 2 peer-reviewed articles as the reference.

5. Need to provide examples whenever applicable.

6. Please find the related PowerPoint and textbook in the attachment. 

7.  Please answer each of the following questions in detail and provide in-text citations in support of your argument. Include examples whenever applicable. 

8. Please find the Course Learning Outcome list of this course in the attachment. 

Textbook Information:

Baye, M. R., & Prince, J. T. (2017). Managerial economics and business strategy (9th ed.). McGraw-Hill Education

ISBN 9781259290619