This document provides an overview of key concepts in managerial economics. It discusses how managerial economics uses economic analysis to help managers make optimal business decisions given scarce resources. Some key points covered include: the role of the manager is to make choices among alternatives to maximize firm value; firms must minimize costs and make rational investment decisions; microeconomics provides the methodology for analyzing supply, demand, production and costs. Porter's 5 forces framework is also introduced to analyze factors that impact industry profitability.
Students should be able to:
Explain and evaluate the potential costs and benefits of monopoly to both firms and consumers, including the conditions necessary for price discrimination to take place
Diagrams should also be used to support the understanding of price discrimination
Introduction to Applied Economics:
Economics as a study of wealth
Utilization of wealth for production and consumption
Economics as a study of making choices
Opportunity cost: forgone benefits of an alternative when making a choice
Economics as a study of allocation
Allocation of scarce resources to answer unlimited human wants
Economics as a social science
As a science, uses scientific method of inquiry
As a social science, uses the scientific method to study how society creates its material wealth, how it make this wealth available to its people with minimum difficulties and it expands its wealth
Resources and the study of economics
Natural resources, Human resources, Physical or man-made resources
This short revision video provides an overview of three forms of imperfect competition, namely monopoly, oligopoly and imperfect competition. It considers too the likely impact of each market structure on allocative, productive and dynamic efficiency.
Students should be able to:
Explain and evaluate the potential costs and benefits of monopoly to both firms and consumers, including the conditions necessary for price discrimination to take place
Diagrams should also be used to support the understanding of price discrimination
Introduction to Applied Economics:
Economics as a study of wealth
Utilization of wealth for production and consumption
Economics as a study of making choices
Opportunity cost: forgone benefits of an alternative when making a choice
Economics as a study of allocation
Allocation of scarce resources to answer unlimited human wants
Economics as a social science
As a science, uses scientific method of inquiry
As a social science, uses the scientific method to study how society creates its material wealth, how it make this wealth available to its people with minimum difficulties and it expands its wealth
Resources and the study of economics
Natural resources, Human resources, Physical or man-made resources
This short revision video provides an overview of three forms of imperfect competition, namely monopoly, oligopoly and imperfect competition. It considers too the likely impact of each market structure on allocative, productive and dynamic efficiency.
This revision presentation considers the variety of stakeholders impacted by business activity. How will a change in objectives, such as a move from profit maximisation to revenue maximisation have an effect on different stakeholders?
This slide share contains the meaning of profits and the first order and second order conditions for profit maximization with numerical examples.Theories of profits are also discussed in brief.
This revision presentation considers the variety of stakeholders impacted by business activity. How will a change in objectives, such as a move from profit maximisation to revenue maximisation have an effect on different stakeholders?
This slide share contains the meaning of profits and the first order and second order conditions for profit maximization with numerical examples.Theories of profits are also discussed in brief.
How to Grasp terminologies like Strategy and operation in basic level, and demonstrate this understanding in real life , i am taking the hand for how the strategy and operation should work together for safe and sustainable business run
Introduction
In life, there are universal laws that govern everything we do. These laws are so perfect that if you were to align yourself with them, you could have so much prosperity that it would be coming out of your ears. This is because God created the universe in the image and likeness of him. It is failure to follow the universal laws that causes one to fail. The laws that were created consisted of the following: ·
Law of Gratitude: The Law of Gratitude states that you must show gratitude for what you have. By having gratitude, you speed your growth and success faster than you normally would. This is because if you appreciate the things you have, even if they are small things, you are open to receiving more.
Law of Attraction: The Law of Attraction states that if you focus your attention on something long enough you will get it. It all starts in the mind. You think of something and when you think of it, you manifest that in your life. This could be a mental picture of a check or actual cash, but you think about it with an image.
Law of Karma: the Law of Karma states that if you go out and do something bad, it will come back to you with something bad. If you do well for others, good things happen to you. The principle here is to know you can create good or bad through your actions. There will always be an effect no matter what.
Law of Love: the Law of Love states that love is more than emotion or feeling; it is energy. It has substance and can be felt. Love is also considered acceptance of oneself or others. This means that no matter what you do in life if you do not approach or leave the situation out of love, it won't work.
Law of Allowing: The Law of Allowing states that for us to get what we want, we must be receptive to it. We can't merely say to the Universe that we want something if we don't allow ourselves to receive it. This will defeat our purpose for wanting it in the first place.
Law of Vibration: the Law of Vibration states that if you wish on something and use your thoughts to visualize it, you are halfway there to get it. To complete the cycle you must use the Law of Vibration to feel part of what you want. Do this and you'll have anything you want in life.
For everything to function properly there has to be structure. Without structure, our world, or universe, would be in utter chaos. Successful people understand universal laws and apply them daily. They may not acknowledge that to you, but they do follow the laws. There is a higher power and this higher power controls the universe and what we get out of it. People who know this, but wish to direct their own lives, follow the reasons. Successful people don't sit around and say "I'll try," they say yes and act on it.
Chapter - 1
The Law of Attraction
The law of attraction is the most powerful force in the universe. If you work against it, it can only bring you pain and misery. Successful people know this but have kept it hidden from the lower class for centuries because th
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
for beginners, providing thorough training in areas such as SEO, digital communication marketing, and PPC training in Noida. After finishing the program, students receive the certifications recognised by top different universitie, setting a strong foundation for a successful career in digital marketing.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
2. Introduction, Basic Principles and
Methodology
The central themes of Managerial
Economics:
1. Identify problems and opportunities
2. Analyzing alternatives from which choices
can be made
3. Making choices that are best from the
standpoint of the firm or organization
3. • Not true that all managers must be
managerial economists
• But managers who understand the
economic dimensions of business
problems and apply economic analysis to
specific problems often choose more
wisely than those who do not.
4. Some Economic Principles of
Managers
1.Role of manager is to make decisions. Firms
come in all sizes but no firm has unlimited
resources so managers must decide how
resources are employed
5. 2. Decisions are always among alternatives.
3. Decision alternatives always have costs
and benefits
Opportunity cost = next best alternative
foregone.
Marginal or incremental approach
4. Anticipated objective of management is to
increase the firm’s value
6. • Maximize shareholder’s wealth
• Negative impact = principal-agent problem
5. Firm’s value is measured by its expected
profits
Time value of money, discount rates
6. The firm must minimize cost for each level
of production
7. 7. The firm’s growth depends on rational
investment decisions
Capital budgeting decisions
8. Successful firms deal rationally and
ethically with laws and regulations
8. Macroeconomics & Microeconomics
• Economists generally divide their discipline into
two main branches:
• Macroeconomics is the study of the aggregate
economy.
– National Income Analysis (GDP)
– Unemployment
– Inflation
– Fiscal and Monetary policy
– Trade and Financial relationships among nations
9. • Microeconomics is the study of individual
consumers and producers in specific markets.
– Supply and demand
– Pricing of output
– Production processes
– Cost structure
– Distribution of income and output
Microeconomics is the basis of managerial economics
10. • Methodology, data and application
Methodology- is a branch of philosophy that
deals with how knowledge is obtained.
How can you know that you are managing
efficiently and effectively?
You need some theory to do some analysis.
Without theory, there can be no good
analysis
11. Microeconomics (probably more than other
disciplines) provides the methodology for
managerial economics
Managerial Economics is about both
methodology and data
You need data to plug into some model to do
some analysis.
This gives you the information to manage
Managerial Economics lends empirical content to
the study of effective management
12. Review of Economic Terms
• Resources are factors of production or inputs.
– Examples:
• Land
• Labor
• Capital
• Entrepreneurship
13. • Managerial Economics
– The study of how to direct scarce resources in
the way that most efficiently achieves a
managerial goal.
14. • Managerial economics is the use of economic
analysis to make business decisions involving
the best use (allocation) of an organization’s
scarce resources.
15. • Relationship to other business disciplines
– Marketing: Demand, Price Elasticity
– Finance: Capital Budgeting, Break-Even Analysis,
Opportunity Cost, Economic Value Added
– Management Science: Linear Programming,
Regression Analysis, Forecasting
– Strategy: Types of Competition, Structure-Conduct-
Performance Analysis
– Managerial Accounting: Relevant Cost, Break-Even
Analysis, Incremental Cost Analysis, Opportunity Cost
16. • Questions that managers must answer:
– What are the economic conditions in a particular
market?
• Market Structure?
• Supply and Demand Conditions?
• Technology?
• Government Regulations?
• International Dimensions?
• Future Conditions?
• Macroeconomic Factors?
17. • Questions that managers must answer:
– Should our firm be in this business?
– If so, what price and output levels achieve our
goals?
18. • Questions that managers must answer:
– How can we maintain a competitive advantage over
our competitors?
• Cost-leader?
• Product Differentiation?
• Market Niche?
• Outsourcing, alliances, mergers,
• acquisitions?
• International Dimensions?
19. • Questions that managers must answer:
– What are the risks involved?
• Risk is the chance or possibility that actual
future outcomes will differ from those
expected today.
20. • Types of risk
– Changes in demand and supply conditions
– Technological changes and the effect of
competition
– Changes in interest rates and inflation rates
– Exchange rates for companies engaged in
international trade
– Political risk for companies with foreign
operations
21. • Because of scarcity, an allocation decision must
be made. The allocation decision is comprised of
three separate choices:
– What and how many goods and services should be
produced?
– How should these goods and services be produced?
– For whom should these goods and services be
produced?
22. • Economic Decisions for the Firm
– What: The product decision – begin or stop
providing goods and/or services.
– How: The hiring, staffing, procurement, and
capital budgeting decisions.
– For whom: The market segmentation decision
– targeting the customers most likely to
purchase.
23. • Three processes to answer what, how, and
for whom
– Market Process: use of supply, demand, and
material incentives
– Command Process: use of government or
central authority, usually indirect
– Traditional Process: use of customs and
traditions
24. • Profits are a signal to resource holders
where resources are most valued by
society
• So what factors impact sustainability of
industry profitability?
• Porter’s 5-forces framework discusses 5
categories of forces that impacts
profitability
25. 1. Entry
2. Power of input sellers
3. Power of buyers
4. Industry rivalry
5. Substitutes and Complements
26. Entry:
Heightens competition
Reduces margin of existing firms
Ability to sustain profits depends on the
barriers to entry: cost, regulations,
networking, etc.
Profits are higher where entry is low
27. Power of input suppliers:
Do input suppliers have power to negotiate
favorable input prices?
Less power if
a. inputs are standardized,
b. not highly concentrated
c. alternative inputs available
Profits are high when suppliers power is low
28. Power of buyers:
High buyer power if
a. buyers can negotiate favorable terms for
the good/service
b. Buyer concentration is high
c. Cost of switching to other products is low
d. perfect information leading to less costly
buyer search
29. Industry rivalry:
Rivalry tends to be less intense
a. in concentrated industries
b. high product differentiation
c. high consumer switching cost
Profits are low where industry rivalry is
intense
30. Substitutes and complements:
Profitability is eroded when there are close
substitutes
Government policies (restrictions e.g. import
restriction on drugs from Canada to US)
can affect the availability of substitutes.
31. Sustainabl
e Industry
Profits
Power of
Input Suppliers
Supplier Concentration
Price/Productivity of
Alternative Inputs
Relationship-Specific
Investments
Supplier Switching Costs
Government Restraints
Power of
Buyers
Buyer Concentration
Price/Value of Substitute
Products or Services
Relationship-Specific
Investments
Customer Switching Costs
Government Restraints
EntryEntry Costs
Speed of Adjustment
Sunk Costs
Economies of Scale
Network Effects
Reputation
Switching Costs
Government Restraints
Substitutes & Complements
Price/Value of Surrogate Products
or Services
Price/Value of Complementary
Products or Services
Network Effects
Government
Restraints
Industry Rivalry
Switching Costs
Timing of Decisions
Information
Government Restraints
Concentration
Price, Quantity, Quality, or
Service Competition
Degree of Differentiation
The Five Forces Framework
32. Market Interactions
• Consumer-Producer Rivalry
– Consumers attempt to locate low prices, while
producers attempt to charge high prices.
• Consumer-Consumer Rivalry
– Scarcity of goods reduces the negotiating
power of consumers as they compete for the
right to those goods.
33. • Producer-Producer Rivalry
– Scarcity of consumers causes producers to
compete with one another for the right to
service customers.
• The Role of Government
– Disciplines the market process.
34. Overview of Lectures
Lecture 1: Demand
Lecture 2: Supply
Lecture 4: Quantitative Demand Analysis
Lecture 5: The Theory of Individual Behavior
Lecture 6:Demand Estimation & Forecasting
Lecture 7: Production
Lecture 8: Cost of Production
36. Lecture 17: Labor and Capital Market
Lecture 18: Capital Market
Lecture 19: Economic Equations and Their
Solutions
Lecture 20: Economics Applications of
Derivatives
Lecture 21: ECONOMIC APPLICATION OF
DERIVATIVES – A
Lecture 22: ECONOMIC APPLICATION OF
DERIVATIVES - A
37. Lecture 23: ECONOMIC APPLICATION OF
MAXIMAAND MINIMA-A
Lecture24: MAXIMIZATION OR
MINIMIZATION (OTIMIZATION) OF
MULTI-VARIABLE FUNCTIONS OR TWO
OR MORE VARIABLE
Lecture 25: CONSTRAINED OPTIMIZATION
Lecture 26: CONSTRAINT OPTIMIZATION –
A
Lecture 27: Correlation & Regression
38. Lecture 28: Measuring a Nation’s Income
Lecture 29: Money
Lecture 30: Monetary Policy
Lecture 31: Fiscal Policy and NI Determination