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Managerial Economics

  1. Describe two activities inside your organization, or one inside and one outside your organization, that exhibit economies (or diseconomies) of scope. Describe the source of the scope economies. How could your organization exploit the scope economy or diseconomy? Compute the profit consequences of the advice.
  2. Describe a pricing decision your company has made. Was it optimal? If not, why not? How would you adjust price? Compute the profit consequences of the change.

Sample Solution

The point of learning theory is to discover the best ways in which to help children learn, whether this is through behaviourist, cognitivist, or other means, such as humanistic theories. While humanist theories have not been discussed here, they are important to note as being one of the other major works into learning theories, and centre on work by psychologists such as Maslow and Rogers, who believe that students will learn best when given free agency and choice over what and how they study, and when their other needs (such as hunger, warmth, and a sense of belonging) are met. Behaviourist tend to focus on the environment which is external to the child, to see how alterations can affect change in how a person or animal learns, while cognitivist theorists look instead at aspects intrinsic to child development and memory to predict what a pupil may be able to learn at each stage of their education (Weegar and Pacis, 2012). Proponents of behaviourist theory tend to put forward that learning is passive, and that the mind of the individual is not really as important as the environment in which learning takes place. Skinner stated that all learning could be measured through changes in the behaviour of the subject (Weegar and Pacis, 2012). Cognitivists put a much higher emphasis on the importance of experience, prior learning and the ability to fit new knowledge amongst the student’s existing ideas about how the world works. Constructivism is a branch of cognitivist thought which places great importance on social interaction as a basis for learning. This was discussed by Vygotsky in detail, who felt that the instructor or teacher was very important in facilitating learning, as well as the peers of the student. In terms of the reasons for learning, Cognitivists place more importance on learning for understanding and meaning, while current behaviourists believe that committing information to memory (not necessarily with understanding) should occur before tackling the next stage of learning (Weegar and Pacis, 2012). Cognitivists place active learning at the forefront, which rules out many types of behaviourist teaching, such as rote learning, which is passive absorption and repetition, sometimes without expectation of real understanding. Piaget argued that students must take responsibility for their own learning in the classroom, that learning should be less teacher-centric, more pupil-focussed. (Weegar and Pacis, 2012). The activities of the students should be defined by their developmental stage and cogitative abilities.

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