- The document discusses key concepts in managerial economics including the command process, traditional process, profit for managers vs owners, economic decisions around what, how and for whom, transaction costs, dividend growth model, opportunity costs, depreciation methods, agency problems, risk vs return, and differences between accounting and economic profits. - It provides answers to questions related to these topics, giving examples and explanations of concepts. Specific examples discussed include how government control impacts the command process, how culture impacts the traditional process, how compensation plans can minimize agency problems, and how implicit costs create differences between accounting and economic profits. - Understanding supply and demand mechanics is important for managers to help or hurt companies based on changes in markets over