Economics for managerial_decision_making
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The document provides an overview of topics in managerial economics including: 1. Microeconomics concepts like rationality, opportunity cost, and general/partial equilibrium. 2. Common decision-making fallacies that managers should avoid. 3. Demand analysis, elasticity of demand, utility analysis, and indifference curve analysis to understand consumer behavior. 4. Supply analysis, elasticity of supply, and price formation under different market structures like perfect competition, monopoly, monopolistic competition, and oligopoly. 5. Production and cost analysis including costs, revenues, and equilibrium for firms. The treatment is intended to be non-mathematical and focus on applying economics principles to
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This document provides an introduction to managerial economics. It defines managerial economics as applying economic theory and methods to business decision making. Managerial economics helps managers understand how economic forces impact organizations and the economic consequences of decisions. It identifies strategies to efficiently meet organizational goals. The document also contrasts managerial economics with traditional economics and discusses key concepts in economics like positive economics, normative economics, and opportunity cost.
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Managerial economics is the application of economic theory to business decision making and planning. It helps managers maximize profit by analyzing factors like demand, production, costs, revenue, and market structure. Managerial economics draws on both microeconomics and macroeconomics to understand the economic environment businesses operate in and how government policies and other external conditions affect firm behavior and performance. It provides frameworks for evaluating risks, costs, and uncertainties involved in business decisions.
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The document provides information on managerial economics and decision making. It defines managerial economics as applying economic theory to management decision making. It lists examples of managerial decisions and outlines a six step process for decision making. Finally, it explains how managerial economics helps managers make decisions by establishing objectives, defining problems, identifying factors, specifying alternatives, collecting data, evaluating options, and implementing and monitoring the best alternative.
Managerial decision making - ENGINEERING ECONOMICS & FINANCIAL ACCOUNTING - ...
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This document provides an overview of key concepts in managerial economics including theories of the firm, profit measurement, sources of profit variability, and the role of business in society. It outlines how managerial economics can help evaluate choices, make optimal decisions, and maximize profits. The text introduces concepts like expected value maximization, economic versus accounting profits, and disequilibrium and compensatory profit theories. It aims to explain how economics describes management and can improve decision-making.
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nature scope significance of Managerial Economics
Managerial economics deals with applying economic concepts and methodologies to help managers make rational decisions. It bridges the gap between economic theory and business practices. While traditional economics studies broad economic principles, managerial economics focuses on microeconomic problems faced by individual firms. It uses tools from decision science and economics to identify issues, organize information, and evaluate alternatives to find optimal solutions for business problems. The goal of managerial economics is to help managers achieve organizational objectives efficiently by making well-informed choices.
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introduction,characteristics,scope ,importance ,micro & macro concept,decision making,fundamental concept,etc
Economics 1.216181522
The document provides an overview of managerial economics, including its definition, scope, and significance. It discusses how managerial economics integrates economic theory with business practices to help managers make informed decisions. Some key principles that guide managerial decision-making are also introduced, such as opportunity cost, marginal analysis, and discounting future cash flows.
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The AFI Strategy Framework
Access the text alternative for slide image.
©McGraw-Hill Education.
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The Firm within Its External Environment, Industry, and Strategic Group, Subject to PESTEL Factors
©McGraw-Hill Education.
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The PESTEL Framework
Framework to scan, monitor, and evaluate important external factors/trends (opportunities and threats) impacting a firm in its quest for competitive advantage.
©McGraw-Hill Education.
Analyzing the General Environment
Consider the relevance of each of the six factors in the context of the particular business
Identify and categorize the information that applies to the relevant factors (identify opportunities and threats)
Analyze the data and draw conclusions – which O/T need to be acted on and when (short term vs. long term)?
©McGraw-Hill Education.
MACRO
MICRO
3-‹#›
©McGraw-Hill Education.
6
EXTERNAL ANALYSIS
INDUSTRY ANALYSIS
Five Forces Model
COMPETITOR ANALYSIS
Strategic Group Mapping
PESTEL Framework
Definitions
Industry
A group of (**incumbent**) firms that face the same set of suppliers and buyers
Industry Analysis
Identifies the industry's profit potential
Derive implications for a firm’s strategic position within an industry
Strategic Position
A firm’s ability to create value (V) for customers while containing costs (C)
Competitive Advantage = a large value gap (V - C)
©McGraw-Hill Education.
Instructors:
The digital companion to this book McGraw-Hill Connect has an brief case exercise on this section of the textbook. It builds student confidence on the PESTEL tool (LO 3-1).
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Michael Porter’s 5 Forces Model
A framework for identifying the five forces that determine industry profit potential and help shape firm competitive strategy
This model intersects:
Theory: industrial organization economics with
Practice: hundreds of case studies
Managers can predict industry profit potential and position their firms for sustainable competitive advantage.
©McGraw-Hill Education.
For example, hotel chains and resort owners have challenged Airbnb in courts and lobbied local governments, some of which passed regulations to limit or prohibit short-term rentals. Local residents in New York, San Francisco, Berlin, Paris, and many other cities are also pressuring local governments to enact more aggressive rules banning short-term rentals because they argue that companies such as Airbnb contribute to a shortage of affordable housing by turning entire apartment complexes into hotels or transforming quiet family neighborhoods into all-night, every-night party hot spots.
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http://www.youtube.com/watch?v=mYF2_FBCvXw
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Economics for managerial_decision_making
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- 4. 9. MONOPOLISTIC COMPETITION Meaning and characteristics; equilibrium of a firm in short run and in long run; sources of differentiation; promotional costs and equilibrium. 10. OLIGOPOLY Meaning; characteristics; Cournot’s model; kinked demand curve model; price leadership model; cartels; game theory treatment of oligopoly. IMPORTANT NOTE The treatment of the subject shall be non mathematical Emphasis, while teaching, will be on application of economics principle to the behaviour of the players in Indian Market. Reference books • Prasoon Majumder: Economic Analysis Simplified for You (IIPM/Vikas:2010): All chapters