Managerial economics involves applying economic principles to business management problems in order to facilitate optimal decision-making. It integrates economic theory with business practices. Managerial economics helps managers understand concepts like opportunity costs, marginal analysis, and incremental costs to make decisions around pricing, production levels, investment, and more. It draws on both microeconomics, which examines individual markets and industries, and macroeconomics, which analyzes the overall economy and external business environment.
UNIT - I: INTRODUCTION TO BUSINESS ECONOMICS: Definition - Nature and Scope -
The Role of economists in an organization; BASIC ECONOMIC PRINCIPLES: The concept
of Opportunity Cost - Discounting principle - Time perspective - Incremental Concept –
Equi-Marginalism; OBJECTIVES OF THE FIRM: Profit Maximization - Sales Maximization
and other objectives.
UNIT - I: INTRODUCTION TO BUSINESS ECONOMICS: Definition - Nature and Scope -
The Role of economists in an organization; BASIC ECONOMIC PRINCIPLES: The concept
of Opportunity Cost - Discounting principle - Time perspective - Incremental Concept –
Equi-Marginalism; OBJECTIVES OF THE FIRM: Profit Maximization - Sales Maximization
and other objectives.
Fundamental concepts, principle of economicsShompa Nandi
Fundamental Concept or Principle of Economics, Opportunity cost principle, Equi-marginal principle, incremental principle, discounting principle, Risk and uncertainty, Time Perspective
A PowerPoint Presentation about Indifference Curve of Economics. Everyone should know about Indifference Curve. So watch it, download it and make your own from it.
Microeconomics: Introduction and basic conceptsPie GS
1.1 Meaning and definition of microeconomics
1.2 Basic microeconomic issues: scarcity, efficiency and
alternative uses of resources
1.3 Differences between microeconomics and macroeconomics
1.4 Opportunity cost, normative economics and positive
economics
1.5 Importance of microeconomics in business decision making
1.6 Economic models: meaning and use of economic models
Fundamental concepts, principle of economicsShompa Nandi
Fundamental Concept or Principle of Economics, Opportunity cost principle, Equi-marginal principle, incremental principle, discounting principle, Risk and uncertainty, Time Perspective
A PowerPoint Presentation about Indifference Curve of Economics. Everyone should know about Indifference Curve. So watch it, download it and make your own from it.
Microeconomics: Introduction and basic conceptsPie GS
1.1 Meaning and definition of microeconomics
1.2 Basic microeconomic issues: scarcity, efficiency and
alternative uses of resources
1.3 Differences between microeconomics and macroeconomics
1.4 Opportunity cost, normative economics and positive
economics
1.5 Importance of microeconomics in business decision making
1.6 Economic models: meaning and use of economic models
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
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The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
JMeter webinar - integration with InfluxDB and GrafanaRTTS
Watch this recorded webinar about real-time monitoring of application performance. See how to integrate Apache JMeter, the open-source leader in performance testing, with InfluxDB, the open-source time-series database, and Grafana, the open-source analytics and visualization application.
In this webinar, we will review the benefits of leveraging InfluxDB and Grafana when executing load tests and demonstrate how these tools are used to visualize performance metrics.
Length: 30 minutes
Session Overview
-------------------------------------------
During this webinar, we will cover the following topics while demonstrating the integrations of JMeter, InfluxDB and Grafana:
- What out-of-the-box solutions are available for real-time monitoring JMeter tests?
- What are the benefits of integrating InfluxDB and Grafana into the load testing stack?
- Which features are provided by Grafana?
- Demonstration of InfluxDB and Grafana using a practice web application
To view the webinar recording, go to:
https://www.rttsweb.com/jmeter-integration-webinar
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Software Delivery At the Speed of AI: Inflectra Invests In AI-Powered QualityInflectra
In this insightful webinar, Inflectra explores how artificial intelligence (AI) is transforming software development and testing. Discover how AI-powered tools are revolutionizing every stage of the software development lifecycle (SDLC), from design and prototyping to testing, deployment, and monitoring.
Learn about:
• The Future of Testing: How AI is shifting testing towards verification, analysis, and higher-level skills, while reducing repetitive tasks.
• Test Automation: How AI-powered test case generation, optimization, and self-healing tests are making testing more efficient and effective.
• Visual Testing: Explore the emerging capabilities of AI in visual testing and how it's set to revolutionize UI verification.
• Inflectra's AI Solutions: See demonstrations of Inflectra's cutting-edge AI tools like the ChatGPT plugin and Azure Open AI platform, designed to streamline your testing process.
Whether you're a developer, tester, or QA professional, this webinar will give you valuable insights into how AI is shaping the future of software delivery.
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This talk is aimed at encouraging a more independent approach to using PHP frameworks, moving towards a more flexible and future-proof approach to PHP development.
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Let me take this questions and provide you a short journey through existing deployment models and use cases for AI software. On practical examples, we discuss what cloud/on-premise strategy we may need for applying it to our own infrastructure to get it to work from an enterprise perspective. I want to give an overview about infrastructure requirements and technologies, what could be beneficial or limiting your AI use cases in an enterprise environment. An interactive Demo will give you some insides, what approaches I got already working for real.
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
Are you looking to streamline your workflows and boost your projects’ efficiency? Do you find yourself searching for ways to add flexibility and control over your FME workflows? If so, you’re in the right place.
Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Here’s what you’ll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
We’ll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Don’t miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
3. What is Managerial Economics???
It is the integration of economic
principles with business management
practices
It is essentially applied economics in the
field of business management.
4. Definitions: Managerial Economics
Integration of Economic theory with
business practice for purpose of facilitating
decision making and forward planning by
management
- Spencer & Siegelman
It is concerned with the application of
economic concepts and economics to the
problems of formulating rational decision
making
-Mansfield
5. Why do Managers need to know Economics?
Economic theories contribute in building
analytical models, which help to recognize
the structure of managerial problems
Economic theories do enhance analytical
capabilities of business analyst
They offer clarity to various concepts used
in business analysis, which enables the
managers to avoid conceptual pitfalls
6. Decision Problems faced by firms
What should be the price of the product?
What should be the size of the plant to
be installed?
How many workers should be employed?
What is the optimal level of inventories
of finished products, raw material, spare
parts, etc.?
What should be the cost structure?
7. Relationship between Economics & Management
Business Management
Economics theory
Decision Problems
Managerial Economics-
Application of Economics
to
solving business problems
Optimal Solutions to
Business problems
8. Significance: Managerial Economics
Reconciling traditional theoretical
concepts in relation to the actual
business behavior and conditions
Estimating economic relationships
Predicting relevant economic
quantities
Formulating business policies and
plans
9. Characteristics: Managerial Economics
Microeconomic in character
Is Normative rather than positive in
character
It is prescriptive rather than descriptive
Also uses Macroeconomics since it
provides an intelligent understanding of
environment
10. Scope: Managerial Economics
Incorporate micro and macroeconomics to deal
with business problems
Microeconomics - micro means a small part Concerned
with analysis of behavior of individual economic variables
such as individual consumer or a producer or price of a
particular commodity
Macroeconomics - concerned with aggregate behavior of
the economy as a whole
11. Microeconomics applied to (operational)
internal issues
Demand Analysis
Production and Supply analysis
Cost analysis
Analysis of market structure and Pricing Theory
Profit Analysis
Capital and Investment Decisions
12. Macroeconomics applied to external issues-
Economic Environment
Type of Economic system of a country
Study of Macro variables
Study related to foreign trade
Study of Government policies – Monetary,
Fiscal
13. Role of a Managerial Economist
He is an economic advisor to a firm
He not only studies the economic trends at
macro level but also interpret their relevance
to the particular industry
Task of making specific decisions
General task of managers to use readily
available information in outside environment
to make a decision that furthers the goals of
organization
14. Decisions to be taken by Managerial
economist
Production scheduling
Demand Estimation and Forecasting
Analysis of market to determine nature and
extent of competition
Pricing problems of industry
Assist business planning process
Advising on investment and capital budgeting
Analyzing and forecasting environmental
factors
15. Basic Economic Principles for Managerial
Decision making
Opportunity Cost Principle
Marginal Principle
Incremental Principle
Equi - Marginal Principle
Time Perspective Principle
Discounting Principle
16. Opportunity Cost
Related to alternative uses of scarce
resources
Opportunity cost of availing an opportunity
is the expected income foregone from
second best alternative
Difference between actual earning and its
opportunity cost is called economic gain.
17. Marginal Principle
Refers to change (increase or decrease)
in total of any quantity due to a unit
change in its determinant.
MC= TCn - TCn-1
MR = TRn-TRn-1
Decision Rule FOR Profit Maximization:
MR=MC
18. Marginal value
The marginal value of a dependent
variable is the change in this dependent
variable associated with a 1-unit change in
a particular independent variable
21
19. Marginal Analysis in TV Advertising
(Rs)
No of Total Marginal Total Marginal Net
TV revenue Revenue Cost Cost benefit
Ads TR MR TC MC
1 20000 - 4000 - 16000
2 34000 14000 8000 4000 26000
3 42000 8000 12000 4000 30000
4 46000 4000 16000 4000 30000
5 48000 2000 20000 4000 28000
6 49000 1000 24000 4000 25000
20. Limitations of Marginalism
When used in cost analysis MC refers to
change in variable cost only
Generally firms do not have knowledge
of MC & MR cos most firms produce in
and sell their products in bulk except
cases such as airplanes, ships, etc
21. Incremental Principle
Applied to business decisions which involve a
large change in total cost or total revenue
Incremental cost can be defined as the
change in total cost due to a particular
business decision i.e change in level of
output, investment, etc.
Includes both fixed & variable cost but does
not include cost already incurred i.e sunk cost
22. Contd.. Incremental Principle
Incremental revenue is a change in total
revenue resulting from a change in level of
output, price etc
A business decision worthwhileness is
always determined on the basis of criterion
that incremental revenue should exceed
incremental cost
23. Equi - Marginal Principle
Deals with allocation of resources among
alternative activities
According to this principle an input should be
employed in different activities in such
proportion that the value added by last unit is
the same in all activities or marginal products
from various activities are equalized.
MPA=MPB=MPC=…MPN
24. Time Perspective Principle
Short run & Long run time periods play an
important role in Business decisions
Short run mean that period within which some
of inputs cannot be altered (fixed inputs).
However in long run all inputs can be altered
so they are variable in long run
Determination of time perspective is of great
significance where projections are involved
25. Discounting Principle
A rupee now is worth more than a rupee
earned a year after
To take decision regarding investment which
will yield return over a period of time it is
necessary to find its present worth by using
discounting principle
This principle helps to bring value of future
rupees to present rupees
PV=1/1+i i=8%
PV=100/1.08=92.59
26. Variables and Functions
By definition, any economic
quantity , value or rate that
varies on its own or due to a
change in its determinant(s) is
an economic variable.
27. Functions
A function is a mathematical technique of
stating the relationship between any two
variables having cause and effect relationship
When a relation is established between two or
more variables, it is said that they are
functionally related
When two variables are involved it is bi-variate
and more than two it is Multi-variate
28. Functions
Of the two one is independent variable
which may change on its own
independently and other is dependent
which changes in relation to changes in
the assigned independent variable in a
given function
In mathematical terms, Y= f (X)