vrkunduru

New member
Friends and co student can any one post the notes on the following topics plz

Rules of managerial economics
Variable determent of demand
econometrics
 
A firm can survive only if it is able to cater to the demand for its product at the right time, with the right quantity, understanding the basic concepts of the demand, which are essential for the effective demand forecasting. Demand analysis should be a basic activity of the firms because many of the other activities of the firm depend upon the outcome of the Demand Forecast. The Demand analysis.

a. Provides the basis for analyzing market influences on the firm’s products and thus helps in the adoption to those influences.
b. Demand analysis also highlights the factors which influence the demand for the product which helps to manipulate the demand.

Thus Demand analysis studies not only the price elasticity but also income elasticity, cross elasticity as well as the influence of the advertising expenditure. With the growth of the IT, demand forecasting has become an increasingly important function of the managerial Economics.

2. Pricing and competitive Strategy:

Pricing is very important area of the M.E. In fact, price is the genesis of the revenue of a firm and as such the success of the business firm largely depends on the correctness of the price decisions take n by it. Pricing decisions have been always within the purview of M.E price theory helps to explain how the prices are determined under the different types of market conditions.

3. Cost & Production Analysis:

Cost estimates are very essential in the decision making. A study of the economic costs, combined with the data drawn form the firm’s accounting records, can yield significant cost estimates that are useful for the management decisions. The factors causing variations in costs must be recognized and allowed for it, the management is to arrive at the cost estimates, which are significant for the planning purposes. An element of cost uncertainty exists because all the factors determining costs are not always known or controllable. Knowing economic costs earlier, and being able to measure them are the most necessary steps for the effective profit planning, cost control and often good pricing strategies.

Production analysis is a narrower in scope than cost analysis, production analysis frequently proceeds in physical terms and while cost analysis proceeds in the monetary terms. The chief topics covered under the cost analysis are the cost concepts and classifications, cost analysis, cost-output relationship, economics and diseconomies of scale, analysis of the production function and cost control.

4. Resource Allocation:

M.E like the traditional economic theory is concerned with the problem of optimum allocation of the scarce resources. Marginal Analysis is applied to the problem of determining the level of output which maximizes profit. In this respect Linear programming technique has been used to solve optimization problems. (Linear programming is one of the most particular managerial decision making tools used by the organizations.)

5. Profit Analysis:

Business firms are generally organized for the purpose of making profits, and in the long run, profits provide the chief measure of success. Here some focus is to be made on the element on uncertainty about profits because of the variations in the costs and revenues which, in turn, are caused by factors both internal and external to the firm. If the knowledge about the future is perfect, profit analysis would have been a very easy task. However in the world of uncertainty the difficult area of the M.E. The important aspects covered in this area are nature of the profit polices and the various techniques of the profit planning like B.E.P (Break Even point) analysis etc.

6. Capital or investment Analysis:

Capital is a scarce and expensive factor of production. Of all the various types the classes of the business problems, the most complex and troublesome for the business manger are likely to be in the future. Problems relating to the capital investment, as relatively a larger sum is involved and problems are so complex and their disposal of the finances. The decisions regarding this require considerable tome and labour. All this type of analysis will be done by the top level people in the organization.

Briefly capital management implies planning and the control of capital expenditure. Lack of the capital may result in small size of the operations. Availability of the capital form the various sources like equity capital, institution finance etc. may help to undertake large scale of the operations. Hence the different allocation of the capital is one of the most important tasks of the managers.

The major issues related to the capital analysis are.
a. The choice of the investment of the project.
b. Evaluation of the efficiency of the capital.
c. The most efficient allocation of the capital.

The knowledge of the capital theory can help very much in taking he investment decisions which involves capital budgeting. Feasibility studies, analysis of the cost of capital, rate of the returns etc.

7. Strategic Planning:

Strategic planning provides the management with the framework on which long- tem decisions can be made where has an impact on he behavior of the firm. The firm sets certain long- term goals and objectives and selects the strategy to achieve the same. Goal are set with the expectation that if they are achieved they will contribute to the near term satisfaction of the company’s objectives.

Strategic planning is now a new addition to the scope of M.E with the emergence of the MNC’s. The perspective of the strategic planning is global. It is in contrast to project planning which focuses on the specific project or activity. Strategic planning examines the details required to the effective implementation of the particular strategy within a certain time period. Portfolio models and corporate simulation models cause in the area of the strategic planning. In fact the integration of M.E and strategic planning has given rise to a new area of study called corporate economies.
 

megha1990

New member
can someone please mail the notes on managerial economics?
and also U shape curve in eco..
For some reason i am unable to download them
 

cxfdffd

New member
Can anyone help me with the project.

Indicate the inportance of the study of consumer behaviour for businessmen. How is utility analysis helpful in studing consumer behaviour? Discuss. Also explain the "law of diminishing marginal utility".
 

winner@1

Par 100 posts (V.I.P)
Can anyone help me with the project.

Indicate the inportance of the study of consumer behaviour for businessmen. How is utility analysis helpful in studing consumer behaviour? Discuss. Also explain the "law of diminishing marginal utility".

see if this helps

UTILITY ANALYSIS:

A subset of consumer demand theory that analysis consumer behavior and market demand using total utility and marginal utility. The key principle of utility analysis is the law of diminishing marginal utility, which offers an explanation for the law of demand and the negative slope of the demand curve.

Utility analysis, a subset of consumer demand theory, provides insight into an understanding of market demand and forms a cornerstone of modern microeconomics. In particular, this analysis investigates consumer behavior, especially market purchases, is based on the satisfaction of wants and needs (that is, utility) generated from the consumption of a good.

Utility analysis is primarily taught in introductory courses. A more sophisticated version of consumer demand theory relies on the analysis of indifference curves and is more commonly found at the intermediate course level and above.
Utility and Satisfaction
The primary focus of utility analysis is on the satisfaction of wants and needs obtained by the consumption of goods. This is technically termed utility. The utility generated from consumption affects the decision to purchase and consume a good.

When used in the analysis of consumer behavior, utility assumes a very precise meaning, which differs from the everyday use of the term. In common use, the term utility means "useful." For example, a "utility" knife is one with many uses, something that is handy to have around. In baseball, a "utility" player can perform quite well at several different positions and is thus useful to have on the team. Moreover, a public "utility" is a company that supplies a useful product, such as electricity, natural gas, or trash collection.

In contrast, the specific economic use of the term utility in the study of consumer behavior means the satisfaction of wants and needs obtained from the consumption of a commodity. The good consumed need not be "useful" in the everyday sense of the term. It only needs to provide satisfaction.

In other words, a frivolous good that has little or no practical use, can provide as much utility as a more useful good.

An OmniOpen Deluxe Can Opener is extremely useful, especially when a sealed can needs to be opened.

An autographed photo of Brace Brickhead, Medical Detective, is not very useful. It does nothing but rest peacefully in a picture frame.

Both items, however, provide utility. Both items satisfy wants and needs. The OmniOpen Deluxe Can Opener obviously makes it possible to open cans of food which satisfy the hunger need. The autographed photo of Brace Brickhead provides the owner with a warm, fuzzy feeling and a reminder of the time spent enjoying the thrilling exploits of Brace Brickhead, Medical Detective.
The Law of Demand
The primary focus of utility analysis is an understanding of market demand and the law of demand. The law of demand, which gives rise to a negatively-sloped demand curve, is an essential principle underlying market analysis. Modern microeconomic theory, among other topics, is concerned with understanding and explaining the law of demand.

The explanation of the law of demand using utility analysis is relatively simple. Consumers purchase goods that satisfy wants and needs, that is, generate utility. Those goods that generate more utility are more valuable to consumers and thus buyers are willing to pay a higher price. The key to the law of demand is that the utility generated declines as the quantity consumed increases. As such, the demand price that buyers are willing to pay decreases as the quantity demanded increases.

Total Utility
Utility analysis begins with the total utility derived from the consumption of different quantities of a good. Total utility is simply a measure of the total satisfaction of wants and needs obtained from the consumption or use of a good or service. It is often convenient to present total utility for a range of quantities in a table such as the one displayed to the right.

Utility analysis is based on the presumption that the amount of utility generated from the consumption of a good can be explicitly measured. The standard hypothetical measurement unit is "utils."

The Law of Diminishing Marginal Utility
A clear pattern is displayed by the marginal utility values in the far right column. Marginal utility decreases as Edgar takes more rides. This decreasing marginal utility reflects the law of diminishing marginal utility. The law of diminishing marginal utility states that marginal utility, or the extra utility obtained from consuming a good, decreases as the quantity consumed increases. In essence, each additional good consumed is less satisfying than the previous one. This law is particularly important for insight into market demand and the law of demand.

If each additional unit of a good is less satisfying, then a buyer is willing to pay less. As such, the demand price declines. This inverse law of demand relation between demand price and quantity demanded is a direct implication of the law of diminishing marginal utility.

:tea: have a positive attitude and work hard for success
 

strauss

New member
Managerial Economics is used in macro economics management.Basically it is used in aggregate management and business decisions.All the economist must have to get expertise in this.
 
Managerial Economics as defined by Edwin Mansfield is "concerned with the application of economic concepts and economic analysis of the problems of drafting good administrative decision.
 
Top