Managerial Economics Week 6 Individual Work 2 Assignment

Managerial Economics calendar week 6 Individual Work 2 - Assignment ExampleThis is because as the output increase at one point, it does non necessarily increase at another point and the inverse is true. The increase in the operating expenditures per student does not bring out a large decrease to enrollment only when rather on that point is an explicit nature of the function.Apart from enrollment, the other important variable in explaining the variations in operating expenditures per student is the teacher salary variable. This teacher salary variable is significant in the virtuoso that it promotes a higher level of motivation thus the operating expenditure per student allow for decrease. A decrease in teacher salary brings about an increase in the operating expenditure per student. When there is a higher rise in teacher salary, the operating expenditure per student will similarly rise significantly.Minimization is always ideal achieving the best of benefits in every institutio n. In this case, expenditures skip and at the same time, there is a reduction in the enrollment level. Barriers towards enrollment also do not exist and it is a case of unconstrained optimization. To minimize on the operating expenditure per student the computation takes the derivative of the operating expenditure with respect to enrollment.30.9 is the reduction level towards the operating expenditure per student that will occur upon adding one more student. This is because at this point (500) there are economies of scale and there are positive externalities.The regression value does not show a good fit value since it is little than 0.75. This is because the right hand side variables also do not fully explain most of the variations or changes. There is an inverse relationship between enrollment level and expenditure whereby the enrollment level increases as the operating expenditure declines. Economies of enrollment that can also show the size can decrease whenever the expenditur es reduce as the enrollment