Managerial Economics, 2nd Edition Errata |
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I apologize for these mistakes. Please, if you find more errata, tell me and I'll post them on this page. For easy reference, I have marked the month in which the errata was posted here.
Chapter 1: Introduction
Chapter 3: Elasticity
Chapter 5: Competitive Markets
Chapter 7: Costs
Chapter 8: Monopoly
Chapter 9:
Pricing Policy
End: Answers to
Progress Checks and Selected Review Questions
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Chapter 3:
Quantitative Demand Analysis
Pages 62-63: Last paragraph, line 3. | "Hence, a change in price will affect expenditure through the price itself as well as through the related effect on quantity demanded." [Correction: delete the remainder of the paragraph.] | 12/98 |
Chapter 4:
Supply
Pages 131: Question 10(b) | "Is supply more or less elastic in the long run than in the short run?" [Correction: change "demand" to "supply".] | 02/01 |
Chapter 5:
Competitive Markets
Page 164: First paragraph, line 2. | "If the short-run marginal cost curve is steep, then the price reduction will not induce the seller to cut back operations by very much. By contrast, if the short-run marginal cost curve is gentle, then the price reduction will have a relatively larger impact. [Corrections: change "lead" to "not induce", change "substantially" to "by very much", change "smaller" to "larger". | 02/01 |
Page 173: Question 8, line 9. | "The price elasticity of the demand for wastepaper has been estimated to be -0.07." [Correction: change "0.07" to "-0.07"]. | 12/98 |
Page 173: Question 9, line 5. | "The elasticities of the supply with respect to price and labor wages are 0.62 and -0.05, respectively. [Correction: change "0.05" to "-0.05".] | 12/98 |
Page 174: Question 10(b), line 6. | "(ii) shift the demand curve down by $18,000 since buyers now pay the commission." [Correction: change "up" to "down".] | 12/98 |
Chapter 8:
Monopoly
Page 254: 2nd paragraph, line 4. | "illegal for another person to copy or manufacture the Office 97 application suite." [Correction: change "operating system" to "application suite".] | 12/98 |
Page 260: 3rd paragraph, line 4. | "The marginal revenue is $70 per unit. The marginal cost is also $70 per unit." [Correction: change "$80" to "$70".] | 12/98 |
Page 263: 2nd paragraph 2, line 3: | "Specifically, the two curves cross at a scale of about 1.5 million units, and the new profit-maximising price is around $137." [Correction: change "$125" to "$137".] | 12/98 |
Page 263: Figure 8.2, legend, line 2: | "The new profit-maximising price is around $137." [Correction: change "$125" to "$137".] | 12/98 |
Page 268: 1st paragraph, line 4. | "The profit-maximizing level of advertising expenditure is $60 x 0.05 x 1.4 million = $4.2 million." [Correction: change "$130" to "$60", and "$9.1 million" to "$4.2 million".] | 12/98 |
Chapter 9:
Pricing Policy
Pages 290-291: last paragraph, last line: | "Since sales fall less than proportionately with the increase in price, Mercury's total revenue will increase, specifically, by 0.1%." [Correction: change "1%" to "0.1%".] | 12/98 |
Page 306: last paragraph, line 5: | "The difference between the Japanese and American prices is $200, which far exceeds the $30 freight cost." [Correction: change "$150" to "$200".] | 12/98 |
Page 322: fifth paragraph, line 1 | "With the small bottle reduced
to 4.9 ounces, a family's buyer surplus from the small bottle will fall
be area hmkb, or (49.4 + 50)/2 x 0.1 = 4.97
cents. Hence, Jupiter can raise the price of the 10-ounce bottle
and still attract families to buy the 10-ounce bottle. Specifically,
Jupiter can raise the price by 4.97
cents, which increases its margin by 4.97
cents.
The net effect of these changes is to raise Jupiter's profit by a total of (4.97 x 100,000) - (0.08 x 100,000) = $4890. [Correction: change "0.497" to "4.97" and "$417" to "$4890".] |
3/99 |
Chapter 10:
Strategic Thinking
Page 359: second paragraph, line 4: | "By contrast, if Sharon's management does activate the rights, there will be 1,800,000 remaining shares, and Hilda must pay $1.38 x 1,800,000 = $2.484 million." [Correction: change "1,900,000" to "1,800,000".] | 12/98 |
Page 367: Question 2(b): | "The payoffs in (a) assumed that the two films were competitors. Now suppose that the publicity surrounding one movie will increase the demand for the other film. Specifically, each studio will sell 70,000 more tickets if both open on the same day." [Correction: change "So, the total number of tickets for the two movies will be largest" to "Specifically, each studio will sell 70,000 more tickets".] | 12/98 |
Page 367: Question 3, second paragraph, line 2: | "Each of four ferries makes 20 round trips (40 trips total) a day carrying 40 cars." [Correction: change "two" to "20" and "four" to "40".] | 12/98 |
Chapter 11:
Externalities
Page 406: Math Supplement, third paragraph, line 1: | "Over the interval [0, 5], the vertical sum of the individual marginal benefits is" [Correction: change "[5, 10]" to "[0, 5]".] | 12/98 |
Answers to Progress
Checks and Selected Review Questions
Page 516: 2A: | "The theater must cut its price by $5 from $7.50 to $2.50." [Correction: change "$3" to "$5".] | 12/98 |
Page 524: 5H(c) | [Correction to price axis: change "1.20" to "1.25".] | 10/99 |
Page 529: 10(a): | "The marginal cost of identifying some expenses ..." [Correction: change "benefit" to "cost".] | 12/98 |
Page 529: 10(b): | "The marginal cost of identifying some expenses ..." [Correction: change "benefit" to "cost".] | 12/98 |
Page 536: 2, line 4: | "Since the sum of the marginal costs exceeds the marginal benefits, the intermediary could make money." [Correction: change "revenue" to "benefits".] | 12/98 |