M.e
•Download as PPT, PDF•
1 like•658 views
Managerial economics applies economic theory and analysis to business decision-making. It uses models to predict firm behavior and test those predictions against evidence. While assumptions may not be realistic, the goal is explanatory and predictive power, not descriptive accuracy. Models allow examining how changes like demand or costs impact equilibrium. Managerial economics provides perspective for decision-making but has limitations if assumptions are unrealistic in practice. It is related to but distinct from industrial economics and management science.
Report
Share
Report
Share
Recommended
Decision making
The document discusses the importance of decision making in management. It states that decision making helps with better utilization of resources, facing problems and challenges, and business growth. Rational decisions specifically help achieve objectives efficiently, increase efficiency, facilitate innovation, and motivate employees. The document then outlines the six steps in the decision making process and various techniques that can be used, including linear programming, decision trees, and probability decision theory. Finally, it discusses the importance and need for planning in business management.
Dm2
Decision-making is a core function of management and involves choosing between alternatives to address problems. It is a continuous process that pervades all managerial actions. Effective decision-making requires following steps like defining the problem, analyzing alternatives, selecting the best solution, implementing it, and getting feedback. While rational decisions are ideal, they may not always be possible due to limitations like inadequate information, time pressure, human biases, and uncertainty.
Management notes b.com ii
This document provides definitions and explanations of key management concepts including:
1. Management is defined as the process of organizing work through people to efficiently achieve goals.
2. Problem analysis involves precisely defining problems and potential solutions through steps like stating the problem, objectives, and listing possible causes.
3. Planning is the systematic development of action programs to reach objectives by analyzing opportunities.
4. Organizing involves arranging resources like people, materials, and technology in an orderly way to accomplish plans and objectives.
5. Controlling involves establishing standards, measuring performance against standards, and correcting any deviations to ensure goals are met.
Management
Managers must effectively manage their organizations in three key ways:
1. Detect and solve problems to make good decisions and ensure employees work toward objectives.
2. Assess the future and plan for it.
3. There are four processes of management: planning, organizing, leading, and controlling. These processes set goals, determine tasks and structure, manage employees, and monitor performance. Organizing further divides work into departments by function, product, territory, customer, or a matrix to specialize work and increase efficiency.
Principles of Management - Case Analysis
The document discusses the case method approach to teaching and learning. It describes case method as using real business situations to help students develop analytical skills like problem identification, solution development, and decision making. The case method involves studying a case, identifying problems, investigating issues, analyzing solutions, and making recommendations. It aims to teach independent and cooperative thinking, introduce realism, demonstrate business issues, teach research and decision making. Analyzing cases strengthens various skills like understanding, deduction, evaluating consequences, and presenting conclusions. The steps outlined for case analysis include multiple readings to identify key facts and problems, defining the problem, setting objectives, outlining alternatives, evaluating pros and cons of options, and recommending and planning a decision.
Module 2 Framework for Viewing HRM
This document discusses the framework for viewing human resource management (HRM) in government agencies. It outlines several key internal and external variables that affect HRM processes, including managerial philosophy, employee needs, technology, governmental pressures, and market conditions. The document examines different approaches to managerial philosophy (traditional, human relations, human resources) and how they view employee motivation. It also presents frameworks for analyzing HRM strategies and the internal and external forces that shape them.
Principles of management
Principles of Management, Derivation of Management Principles, Nature of Principle of Management, Significance of Principle of Management
Principles of business management
This is a presentation on Principles of Business Management. This presentation is based on syllabus of Pt. Ravi Shankar University,Raipur and Durg University, Durg. It is a brief presentation of all the aspects, functions and basic principles of business managaement.
Recommended
Decision making
The document discusses the importance of decision making in management. It states that decision making helps with better utilization of resources, facing problems and challenges, and business growth. Rational decisions specifically help achieve objectives efficiently, increase efficiency, facilitate innovation, and motivate employees. The document then outlines the six steps in the decision making process and various techniques that can be used, including linear programming, decision trees, and probability decision theory. Finally, it discusses the importance and need for planning in business management.
Dm2
Decision-making is a core function of management and involves choosing between alternatives to address problems. It is a continuous process that pervades all managerial actions. Effective decision-making requires following steps like defining the problem, analyzing alternatives, selecting the best solution, implementing it, and getting feedback. While rational decisions are ideal, they may not always be possible due to limitations like inadequate information, time pressure, human biases, and uncertainty.
Management notes b.com ii
This document provides definitions and explanations of key management concepts including:
1. Management is defined as the process of organizing work through people to efficiently achieve goals.
2. Problem analysis involves precisely defining problems and potential solutions through steps like stating the problem, objectives, and listing possible causes.
3. Planning is the systematic development of action programs to reach objectives by analyzing opportunities.
4. Organizing involves arranging resources like people, materials, and technology in an orderly way to accomplish plans and objectives.
5. Controlling involves establishing standards, measuring performance against standards, and correcting any deviations to ensure goals are met.
Management
Managers must effectively manage their organizations in three key ways:
1. Detect and solve problems to make good decisions and ensure employees work toward objectives.
2. Assess the future and plan for it.
3. There are four processes of management: planning, organizing, leading, and controlling. These processes set goals, determine tasks and structure, manage employees, and monitor performance. Organizing further divides work into departments by function, product, territory, customer, or a matrix to specialize work and increase efficiency.
Principles of Management - Case Analysis
The document discusses the case method approach to teaching and learning. It describes case method as using real business situations to help students develop analytical skills like problem identification, solution development, and decision making. The case method involves studying a case, identifying problems, investigating issues, analyzing solutions, and making recommendations. It aims to teach independent and cooperative thinking, introduce realism, demonstrate business issues, teach research and decision making. Analyzing cases strengthens various skills like understanding, deduction, evaluating consequences, and presenting conclusions. The steps outlined for case analysis include multiple readings to identify key facts and problems, defining the problem, setting objectives, outlining alternatives, evaluating pros and cons of options, and recommending and planning a decision.
Module 2 Framework for Viewing HRM
This document discusses the framework for viewing human resource management (HRM) in government agencies. It outlines several key internal and external variables that affect HRM processes, including managerial philosophy, employee needs, technology, governmental pressures, and market conditions. The document examines different approaches to managerial philosophy (traditional, human relations, human resources) and how they view employee motivation. It also presents frameworks for analyzing HRM strategies and the internal and external forces that shape them.
Principles of management
Principles of Management, Derivation of Management Principles, Nature of Principle of Management, Significance of Principle of Management
Principles of business management
This is a presentation on Principles of Business Management. This presentation is based on syllabus of Pt. Ravi Shankar University,Raipur and Durg University, Durg. It is a brief presentation of all the aspects, functions and basic principles of business managaement.
Organisational behaviour (group 2)
The document discusses achieving managerial effectiveness through the planned behavior approach. It begins with an acknowledgement and table of contents. It then discusses what managerial effectiveness means, including achieving organizational goals and objectives. Key managerial skills are communication, listening, commitment to truth, empathy, persuasion, and leadership. The planned behavior approach for achieving managerial effectiveness includes behavior, normative, and control beliefs that influence intentions and actual behavior. The difference between effective and regular managers is also examined.
Improve business practice
This document provides information on organizational diagnosis and benchmarking to improve business performance. It discusses:
1. Organizational diagnosis involves assessing an organization's current performance, identifying gaps between current and desired performance, and determining how to achieve goals. Data collection methods include interviews, surveys, and analyzing primary and secondary sources.
2. Benchmarking involves measuring a company's performance against the best in its industry to identify improvement opportunities. There are four main types and conducting benchmarking involves four steps: planning, data collection, analysis, and adapting best practices.
3. SWOT analysis, value chain analysis, and developing short- and long-term business plans are also discussed as tools to understand an organization and strategize
Jurnal kompensasi yulius effrain
This document summarizes a paper on compensation management. It discusses how compensation involves providing monetary value to employees in exchange for work. An ideal compensation system should motivate employees, boost performance, and engage workers. It should also be well-defined, uniform, and apply to all organization levels. Effective compensation allows for clearer visibility into individual employee performance for compensation planning decisions. The document reviews literature on compensation and discusses analyzing compensation structures, components, equity, and using market rates to determine appropriate pay rates.
managerial economics presentation examination research ppt slideshare
Managerial economics provides tools and concepts from economic theory to analyze business problems and guide managerial decision-making. It bridges the gap between economic theory and business practice by applying microeconomic principles and quantitative methods to operational and strategic issues faced by managers. Some key aspects covered include demand analysis, production and cost analysis, pricing policies, and capital budgeting. The goal is to help managers optimize organizational performance and decision-making under conditions of uncertainty.
Principles of management
The document discusses the principles of management according to various management theorists like Fayol, Taylor, and others. It outlines 14 principles proposed by Fayol including division of work, authority and responsibility, discipline, unity of command, and others. It also discusses the principles of scientific management proposed by Taylor including science not rule of thumb, harmony not discord, and cooperation not individualism. The document provides details on each principle with examples.
1. fundamental of management
This document provides an overview of management concepts including:
- The difference between managers and operative employees and the three levels of managers.
- The four primary processes of management: planning, organizing, leading, and controlling.
- Mintzberg's 10 managerial roles including interpersonal, informational, and decisional roles.
- The four general skills necessary for managers: conceptual skills, interpersonal skills, technical skills, and political skills.
- Why the study of management is important as we will all either manage or be managed at some point in our careers.
Principles of Management - Lecture 2
INTRODUCTION TO MANAGEMENT
PRINCIPLES OF MANAGEMENT
PPT OF THE BOOK
Kathryn M. Bartol,
David C. Martin,
Management (latest edition),
MAIN TOPICS OF THE LECTURE ARE:
Management Theory,
Management Environment,
Managerial Decision Making
HRM Assignment
This document discusses organizational decision making and provides several key points:
1. Organizational decision making is a social process involving conflict, coalition building, and mistakes rather than purely rational analysis. Intuition and past experiences often guide choices more than logic.
2. Decisions are not made by individuals alone but through discussions between people with different goals and priorities. Consensus must be built on what problems to address.
3. The greatest conflict occurs when problems are disagreed upon. Time should be spent building coalitions to identify problems before solutions can be implemented.
4. Decision processes may seem random as problems, ideas, decisions, and people flow through organizations and mix in various ways, gradually leading the
Manage and maintain small and meduim business
The document discusses various aspects of work identification, allocation, and performance evaluation in organizations. It provides definitions of key terms like job description, job analysis, and performance measures. It also outlines the steps in developing an effective performance evaluation system, including creating evaluation forms, identifying performance metrics, setting feedback guidelines, and establishing disciplinary procedures. The overall purpose is to help employers properly assess employee contributions and ensure accountability through a structured evaluation process.
24331615 mg-1351-–-principles-of-management-two-mark-questions-and
This document provides a summary of various management concepts in the form of questions and answers. It covers topics such as types of departmentation, internationalization strategies, conflict, inventories, job enrichment, budgeting, SWOT analysis, decision making techniques, recruitment sources, leadership, communication, motivation theories and more. The questions range from conceptual definitions to practical applications of management principles.
SM 1
This document defines strategic management and its key elements. It begins by defining strategy as a plan of action to achieve long-term goals. It then outlines the elements of an effective strategy, including goals, scope, and competitive advantage. The document also discusses strategic management as the process of formulating, implementing, and evaluating cross-functional decisions to achieve objectives. Finally, it explains the levels of strategy at the corporate, business, and functional levels within an organization.
Principals Of Management
Management is the act of getting people together to accomplish desired goals and objectives by using available resources efficiently and effectively.
Management is very important for the success of banks and insurance companies.
The principles stated by Henry Fayol and Peter Drucker help in managing the banks more efficiently and effectively.
For the better functioning of banks and insurance companies it is necessary to follow the guidelines given by the leaders of the past.
Whenever there is proper management, there is the success in the companies and banks.
Planning as a function of management
The document discusses various aspects of planning as a management function. It defines planning as deciding in advance what to do, how to do it, when to do it, and who will do it. Planning bridges the gap between the present and desired future. The document outlines the purpose and importance of planning, elements of planning like objectives and strategies. It also discusses different types of plans like strategic, tactical and operational plans. Finally, it covers topics like SWOT analysis, competitive strategies and the strategic management process.
Assignment strategic change management
The document discusses developing systems to involve stakeholders in strategic change planning. It outlines developing stakeholder engagement strategies that include brainstorming, focus groups, interviews, reviewing existing data and timelines. It also discusses evaluating stakeholder engagement systems by establishing effort levels, preferred engagement forms and frequencies. Proactive engagement allows issues to be addressed within high trust frameworks, unlike reactive engagement during problems or crises. Good stakeholder programs have timely information disclosure, understand stakeholder perspectives, and evaluate engagement effectiveness.
Contemporary Management Practices
This document discusses several operations management concepts including MIS, MRP, JIT, TQM, Six Sigma, CMM, supply chain management, ERP, performance management, BPO, BPR, benchmarking, and the balanced scorecard. It provides definitions and key aspects of each concept in 1-2 paragraphs with some including objectives and principles.
Module-3 HRM
The document discusses various topics related to training and development, compensation and benefits, and motivation. It covers types of training methods, executive development programs, sustaining employee interest through compensation and rewards. It also discusses concepts like equity, factors determining compensation, total reward systems, and job evaluation methods like the Hay system. Different motivation theories are explained like Maslow's hierarchy of needs, expectancy theory, goal setting theory, and factors affecting employee motivation.
Chapter 1 management in turbulent times
This document discusses organizational change and the challenges of managing in turbulent times. It identifies several driving forces of change, including advancing technology, increasing workforce diversity, rising public expectations of corporate social responsibility, tougher global competition, and the need to satisfy multiple stakeholders. Effective management requires navigating these challenges through planning, organizing, leading, and controlling organizational resources to achieve goals in an efficient and effective way.
Issues of performance and rewardsmanagement
This document discusses several compensation practices and their potential impacts. It notes that forced performance distributions can demotivate solid performers and encourage dysfunctional behaviors by managers. It also discusses how backloading compensation to reward tenure can benefit both employees and employers by incentivizing knowledge accumulation. The document recommends piloting any new programs and carefully considering both intended and unintended impacts of compensation changes through monitoring and research.
How we produce behavior change
Our Leadership in Action leadership development program focuses on producing leaders who will behave in new ways that can improve engagement and discretionary effort in their organizations. This presentation outlines how we produce behavior change in leaders.
Leadership
This document discusses leadership in the context of management. It defines leadership as influencing subordinates' behavior towards desired objectives through guiding and motivating. Effective leadership requires certain qualities of both head and heart. The document outlines different styles of leadership including task-oriented and people-oriented approaches. It also discusses theories of leadership such as the traits approach, behavioral approach, and contingency approach.
Motivation
Motivation involves encouraging employees to take initiative and interest in their work. It creates harmony among employees and avoids conflicts. Managers must effectively communicate with employees, properly appreciate their work, and positively encourage them to motivate employees. This inspires employees to work harder and help achieve company objectives. Motivation is a process of stimulating people to act and accomplish desired goals. It is important for managers and benefits both employees and management by improving performance and employee welfare.
More Related Content
What's hot
Organisational behaviour (group 2)
The document discusses achieving managerial effectiveness through the planned behavior approach. It begins with an acknowledgement and table of contents. It then discusses what managerial effectiveness means, including achieving organizational goals and objectives. Key managerial skills are communication, listening, commitment to truth, empathy, persuasion, and leadership. The planned behavior approach for achieving managerial effectiveness includes behavior, normative, and control beliefs that influence intentions and actual behavior. The difference between effective and regular managers is also examined.
Improve business practice
This document provides information on organizational diagnosis and benchmarking to improve business performance. It discusses:
1. Organizational diagnosis involves assessing an organization's current performance, identifying gaps between current and desired performance, and determining how to achieve goals. Data collection methods include interviews, surveys, and analyzing primary and secondary sources.
2. Benchmarking involves measuring a company's performance against the best in its industry to identify improvement opportunities. There are four main types and conducting benchmarking involves four steps: planning, data collection, analysis, and adapting best practices.
3. SWOT analysis, value chain analysis, and developing short- and long-term business plans are also discussed as tools to understand an organization and strategize
Jurnal kompensasi yulius effrain
This document summarizes a paper on compensation management. It discusses how compensation involves providing monetary value to employees in exchange for work. An ideal compensation system should motivate employees, boost performance, and engage workers. It should also be well-defined, uniform, and apply to all organization levels. Effective compensation allows for clearer visibility into individual employee performance for compensation planning decisions. The document reviews literature on compensation and discusses analyzing compensation structures, components, equity, and using market rates to determine appropriate pay rates.
managerial economics presentation examination research ppt slideshare
Managerial economics provides tools and concepts from economic theory to analyze business problems and guide managerial decision-making. It bridges the gap between economic theory and business practice by applying microeconomic principles and quantitative methods to operational and strategic issues faced by managers. Some key aspects covered include demand analysis, production and cost analysis, pricing policies, and capital budgeting. The goal is to help managers optimize organizational performance and decision-making under conditions of uncertainty.
Principles of management
The document discusses the principles of management according to various management theorists like Fayol, Taylor, and others. It outlines 14 principles proposed by Fayol including division of work, authority and responsibility, discipline, unity of command, and others. It also discusses the principles of scientific management proposed by Taylor including science not rule of thumb, harmony not discord, and cooperation not individualism. The document provides details on each principle with examples.
1. fundamental of management
This document provides an overview of management concepts including:
- The difference between managers and operative employees and the three levels of managers.
- The four primary processes of management: planning, organizing, leading, and controlling.
- Mintzberg's 10 managerial roles including interpersonal, informational, and decisional roles.
- The four general skills necessary for managers: conceptual skills, interpersonal skills, technical skills, and political skills.
- Why the study of management is important as we will all either manage or be managed at some point in our careers.
Principles of Management - Lecture 2
INTRODUCTION TO MANAGEMENT
PRINCIPLES OF MANAGEMENT
PPT OF THE BOOK
Kathryn M. Bartol,
David C. Martin,
Management (latest edition),
MAIN TOPICS OF THE LECTURE ARE:
Management Theory,
Management Environment,
Managerial Decision Making
HRM Assignment
This document discusses organizational decision making and provides several key points:
1. Organizational decision making is a social process involving conflict, coalition building, and mistakes rather than purely rational analysis. Intuition and past experiences often guide choices more than logic.
2. Decisions are not made by individuals alone but through discussions between people with different goals and priorities. Consensus must be built on what problems to address.
3. The greatest conflict occurs when problems are disagreed upon. Time should be spent building coalitions to identify problems before solutions can be implemented.
4. Decision processes may seem random as problems, ideas, decisions, and people flow through organizations and mix in various ways, gradually leading the
Manage and maintain small and meduim business
The document discusses various aspects of work identification, allocation, and performance evaluation in organizations. It provides definitions of key terms like job description, job analysis, and performance measures. It also outlines the steps in developing an effective performance evaluation system, including creating evaluation forms, identifying performance metrics, setting feedback guidelines, and establishing disciplinary procedures. The overall purpose is to help employers properly assess employee contributions and ensure accountability through a structured evaluation process.
24331615 mg-1351-–-principles-of-management-two-mark-questions-and
This document provides a summary of various management concepts in the form of questions and answers. It covers topics such as types of departmentation, internationalization strategies, conflict, inventories, job enrichment, budgeting, SWOT analysis, decision making techniques, recruitment sources, leadership, communication, motivation theories and more. The questions range from conceptual definitions to practical applications of management principles.
SM 1
This document defines strategic management and its key elements. It begins by defining strategy as a plan of action to achieve long-term goals. It then outlines the elements of an effective strategy, including goals, scope, and competitive advantage. The document also discusses strategic management as the process of formulating, implementing, and evaluating cross-functional decisions to achieve objectives. Finally, it explains the levels of strategy at the corporate, business, and functional levels within an organization.
Principals Of Management
Management is the act of getting people together to accomplish desired goals and objectives by using available resources efficiently and effectively.
Management is very important for the success of banks and insurance companies.
The principles stated by Henry Fayol and Peter Drucker help in managing the banks more efficiently and effectively.
For the better functioning of banks and insurance companies it is necessary to follow the guidelines given by the leaders of the past.
Whenever there is proper management, there is the success in the companies and banks.
Planning as a function of management
The document discusses various aspects of planning as a management function. It defines planning as deciding in advance what to do, how to do it, when to do it, and who will do it. Planning bridges the gap between the present and desired future. The document outlines the purpose and importance of planning, elements of planning like objectives and strategies. It also discusses different types of plans like strategic, tactical and operational plans. Finally, it covers topics like SWOT analysis, competitive strategies and the strategic management process.
Assignment strategic change management
The document discusses developing systems to involve stakeholders in strategic change planning. It outlines developing stakeholder engagement strategies that include brainstorming, focus groups, interviews, reviewing existing data and timelines. It also discusses evaluating stakeholder engagement systems by establishing effort levels, preferred engagement forms and frequencies. Proactive engagement allows issues to be addressed within high trust frameworks, unlike reactive engagement during problems or crises. Good stakeholder programs have timely information disclosure, understand stakeholder perspectives, and evaluate engagement effectiveness.
Contemporary Management Practices
This document discusses several operations management concepts including MIS, MRP, JIT, TQM, Six Sigma, CMM, supply chain management, ERP, performance management, BPO, BPR, benchmarking, and the balanced scorecard. It provides definitions and key aspects of each concept in 1-2 paragraphs with some including objectives and principles.
Module-3 HRM
The document discusses various topics related to training and development, compensation and benefits, and motivation. It covers types of training methods, executive development programs, sustaining employee interest through compensation and rewards. It also discusses concepts like equity, factors determining compensation, total reward systems, and job evaluation methods like the Hay system. Different motivation theories are explained like Maslow's hierarchy of needs, expectancy theory, goal setting theory, and factors affecting employee motivation.
Chapter 1 management in turbulent times
This document discusses organizational change and the challenges of managing in turbulent times. It identifies several driving forces of change, including advancing technology, increasing workforce diversity, rising public expectations of corporate social responsibility, tougher global competition, and the need to satisfy multiple stakeholders. Effective management requires navigating these challenges through planning, organizing, leading, and controlling organizational resources to achieve goals in an efficient and effective way.
Issues of performance and rewardsmanagement
This document discusses several compensation practices and their potential impacts. It notes that forced performance distributions can demotivate solid performers and encourage dysfunctional behaviors by managers. It also discusses how backloading compensation to reward tenure can benefit both employees and employers by incentivizing knowledge accumulation. The document recommends piloting any new programs and carefully considering both intended and unintended impacts of compensation changes through monitoring and research.
What's hot (18)
managerial economics presentation examination research ppt slideshare
managerial economics presentation examination research ppt slideshare
24331615 mg-1351-–-principles-of-management-two-mark-questions-and
24331615 mg-1351-–-principles-of-management-two-mark-questions-and
Viewers also liked
How we produce behavior change
Our Leadership in Action leadership development program focuses on producing leaders who will behave in new ways that can improve engagement and discretionary effort in their organizations. This presentation outlines how we produce behavior change in leaders.
Leadership
This document discusses leadership in the context of management. It defines leadership as influencing subordinates' behavior towards desired objectives through guiding and motivating. Effective leadership requires certain qualities of both head and heart. The document outlines different styles of leadership including task-oriented and people-oriented approaches. It also discusses theories of leadership such as the traits approach, behavioral approach, and contingency approach.
Motivation
Motivation involves encouraging employees to take initiative and interest in their work. It creates harmony among employees and avoids conflicts. Managers must effectively communicate with employees, properly appreciate their work, and positively encourage them to motivate employees. This inspires employees to work harder and help achieve company objectives. Motivation is a process of stimulating people to act and accomplish desired goals. It is important for managers and benefits both employees and management by improving performance and employee welfare.
Group dynamics
This document discusses group dynamics and the stages of group development. It explains that groups go through forming, storming, norming, performing, and adjourning stages as they develop. In the forming stage, the group focuses on orientation and relationship building. In the storming stage, conflicts emerge around leadership, power, and authority. In the norming stage, cooperation increases and the group develops cohesion and norms. The document provides details on leadership styles and roles at each stage to help groups progress effectively.
Viewers also liked (6)
Similar to M.e
Economics
Managerial economics applies economic theory and analysis to business decision-making. It uses theoretical models to predict firm behavior and outcomes. The key aspects covered in the document are:
1. Managerial economics models firm behavior and analyzes how changes impact equilibrium using comparative statics.
2. Models make simplifying assumptions and aim to generate testable predictions, not describe reality perfectly. Useful models have predictions supported by evidence.
3. Managerial economics can help decision-making by providing a logical framework, but unrealistic assumptions limit its prescriptive power for managers.
Chapter1
This document provides an overview of managerial economics. It defines managerial economics as the application of economic principles and analysis to business decision-making. It discusses how managerial economics uses hypothetical models and the scientific method to make predictions about firm behavior. While the assumptions of models may not be realistic, the goal is explanatory and predictive power rather than descriptive accuracy. Managerial economics aims to understand business problems from an economic perspective in order to inform decisions, whereas related fields like industrial economics and management science have a more prescriptive focus.
Chapter1
This document provides an overview of managerial economics. It defines managerial economics as the application of economic principles and analysis to business decision-making. It discusses how managerial economics uses hypothetical models and the scientific method to understand firm behavior, make predictions, and test those predictions against evidence. While the assumptions of models may not be realistic, the goal is explanatory and predictive power rather than descriptive accuracy. Managerial economics aims to understand what is, while related fields like industrial organization and management science also aim to provide prescriptive guidance on what should be done.
Economics- chapter 1- F.J
This document provides an overview of managerial economics. It defines managerial economics as the application of economic principles and analysis to business decision-making. It discusses how managerial economics uses hypothetical models and the scientific method of testing assumptions and predictions against evidence. While models aim to predict business behavior, the assumptions may not always be realistic. The document also explores the relationships between managerial economics, industrial economics, and management science, noting differences in their focuses and approaches.
Managerial economics
Managerial economics applies economic theory and analysis to business decision-making. It aims to understand firm behavior and assist managers in making optimal decisions. The chapter defines managerial economics and outlines the modeling process used, which involves making assumptions, deriving predictions, and testing against evidence. While assumptions may not be realistic, predictive power is key. Models can be used for positive analysis of what is or normative analysis of what should be. Limitations exist in applying unrealistic models prescriptively. Managerial economics provides a framework for analyzing issues while considering various pressures on firms. It is related to but distinct from industrial economics and management science.
Managerial economics
Managerial economics applies economic theory and analysis to business decision-making. It aims to understand firm behavior and assist managers in making optimal decisions. The chapter defines managerial economics and outlines the modeling process used, which involves making assumptions, deriving predictions, and testing them against evidence. While assumptions may not be realistic, predictive power is key. Models provide insights and decision rules if limitations around unrealistic assumptions are acknowledged. Managerial economics also relates to industrial organization, which studies industry structure and performance, and management science, which aims to directly improve decision-making.
Notes_on_Managerial_Economics.pdf
This document provides an overview of managerial economics through 12 sections. It discusses key concepts such as the meaning and definitions of managerial economics, its relation to other areas of management like marketing, production, and finance. It also examines how managerial economics draws from economic theory, particularly microeconomics, by applying principles like price elasticity, production functions, and costs to analyze business problems and decisions. The overall document serves as an introduction to managerial economics as a field that uses economic analysis to help solve organizational issues.
102 eabd solved sspu qp april2018
Basic Concepts of Economics: Introduction to Economics , Basic Economic Problem, Circular Flow of
Economic Activity , Adam Smith and Invisible Hand. Nature of the firm - rationale, objective of maximizing
firm value as present value of all future profits, maximizing, satisficing, optimizing, principal agent problem,
Accounting Profit and Economic Profit , Role of profit in Market System
Demand Analysis and Forecasting: Determinants of Market Demand at Firm and Industry level –
Elasticity of Demand - Market Demand Equation – Use of Multiple Regression for estimating demand –
Case study on estimating industry demand (formulating equation and solving with the aid of software
expected)
Demand and Supply: Market Equilibrium – Pricing under perfect competition, monopolistic competition,
Case study on pricing under monopolistic competition , Oligopoly - product differentiation and price
discrimination; price- output decision in multi-plant and multi-product firms.
Cost Concepts: Cost Concept, Opportunity Cost, Marginal, Incremental and Sunk Costs, Cost Volume Profit
Analysis, Breakeven Point, Case Study on marginal costs. Risk Analysis and Decision Making: Concept of
risk, Expected value computation, Risk management through Insurance, diversification, Hedging, Decision
Tree Analysis, Case Study on Decision tree Technique.
Money and Capital Markets in India: Role and Functions of Money Markets, Composition of Money
Market, Money Market Instruments , Reserve Bank of India – Functions , Regulatory Role of RBI w.r.t.
Currency, Credit and Balance of Payment, Open Market Operations. Role and Functions of Capital Markets,
Composition of Capital market, Stock Exchanges in India, Role of SEBI, understanding of stock market
quotations in financial press expected.
Public Finance Infrastructure: Familiarity with important terms/agencies/approaches/practices related to
National Income (such as GDP, PPP, Growth Rate), Foreign Trade (such as GATT, WTO) Union budget
(such as Revenue Account, Capital Account, Revenue Deficit, Fiscal Deficit, Plan and Non-plan expenditure)
is expected. Understanding of Summarize
Bba 103
This document provides an introduction to business economics, including its meaning, nature, scope and significance.
1) Business economics applies economic theory and methodology to help businesses make optimal decisions. It serves as a bridge between economic theory and business practice.
2) The scope of business economics includes demand analysis, cost analysis, pricing decisions, profit management, and capital management. It aims to establish rules to help businesses attain goals like profit maximization.
3) Business economics is significant because it equips businesses with rational decision-making tools by adapting economic models. It also incorporates ideas from other disciplines and helps coordinate activities across business functions.
Business economics
This document provides an introduction to business economics, including its meaning, nature, scope and significance. It discusses how business economics applies economic theory and methodology to help businesses make optimal decisions. The key points are:
1) Business economics helps businesses make choices by analyzing alternatives and costs to maximize profits and efficiency. It provides a rational methodology to formulate business problems and find optimal solutions.
2) The scope of business economics includes demand analysis, cost analysis, pricing decisions, profit management, and capital management. It combines normative and positive economic theories to establish rules for businesses to achieve their goals.
3) Business economics is significant because it equips managers with economic tools and models to make better decisions. It also
Business economics
This document provides an introduction to the concepts of business economics. It discusses:
1) Business economics applies economic theory and methodology to business decision making. It aims to help businesses make optimal choices given limited resources.
2) The scope of business economics includes demand analysis, cost analysis, pricing decisions, profit management, and capital management. It combines normative and positive economic theories.
3) Business economics is significant because it equips managers with analytical tools from economics to make better informed decisions considering various uncertainties faced by businesses. It also helps integrate functional areas and orient decisions toward social goals.
Managerial_Economics_Module_1_Introducti.doc
Managerial economics is the application of economic theory and methodology to business decision making. It helps managers allocate scarce resources efficiently to achieve organizational goals. The document defines managerial economics according to various economists and outlines its scope. Key topics in managerial economics include demand analysis, cost analysis, pricing decisions, profit management, and capital management. Managerial economics uses economic concepts like profits, optimization, and demand and cost analysis to inform business decisions under uncertainty. The overall goal is to provide tools to analyze alternatives and allocate resources optimally to maximize profits.
Eco unit 1 revised 23-1.pptx
This document provides an overview of managerial economics. It defines managerial economics as the application of microeconomic analysis and quantitative methods to business decision making. The key aspects covered include the meaning and definitions of managerial economics, its relationship to economics and business management, its characteristics as a pragmatic and normative discipline, and its scope in areas like demand analysis, cost analysis, production, pricing, profit, and capital management. Decision making in managerial economics involves applying economic principles to solve problems related to a business's internal and external environments under conditions of uncertainty.
Managerial_Economics.docx
Managerial economics applies microeconomic and macroeconomic theories and principles to help managers solve business problems and make optimal decisions. It uses tools from various disciplines like accounting, finance, statistics, and more. Managerial economics helps analyze issues like demand, production, pricing, costs, profits, competition, investments, and the impact of the economic environment. The document provides definitions of managerial economics, discusses its nature and significance for management. It also outlines the scope of managerial economics and the role of a managerial economist in advising businesses.
Managerial economics
Managerial economics is the application of economic theory and methodology to business administration practice and decision making. It helps managers allocate scarce resources efficiently within an organization. Managerial economics draws concepts from microeconomics and uses analytical tools and techniques to improve decision making. It is concerned with both positive economics, which examines what is, and normative economics, which examines what should be to achieve organizational goals. The subject matter of managerial economics includes demand analysis, cost analysis, inventory management, pricing, profit management, and capital budgeting. It is related to and integrates concepts from economics, mathematics, statistics, management theory, and accounting.
Managerial economics
Managerial economics deals with applying economic theory to business decision making. It helps managers make optimal decisions around areas like production, pricing, costs, profits, and capital investments. The key goals of managerial economics are to implement analytical tools to analyze business goals, make new product and business decisions, and identify trends that influence decisions. Managerial economics uses theories and techniques like demand analysis, production and cost analysis, capital budgeting, and game theory to help businesses maximize profits and market share.
Basic principles in the application of managerial economics
Basic Principles in the Application of Managerial Economics, what is economics and introduction, Micro economics
Normative (prescriptive) science, Pragmatic (Practical), Uses Macro economics, Uses theory of firm, Management oriented, Multi disciplinary, Art and science. Scope of Managerial Economics, theory of demand and demand analysis, envirmental issues, Significance of managerial economics in decision making, Significance of managerial economics in decision making
Business Economics Unit 1
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.
Economics presentation explaing the nature
Managerial economics applies economic theory and quantitative techniques to solve business problems. It bridges the gap between abstract economic theory and practical business decision-making. The scope of managerial economics includes demand and supply analysis, production analysis, pricing analysis, capital budgeting, and risk analysis. The role of the managerial economist is to assist with tasks like demand forecasting, market analysis, pricing and investment policies, and advising management on economic issues.
Business Economics
This document discusses fundamentals of business economics. It explains that business economics uses economic tools and theories to help businessmen make decisions. It also discusses key principles of business economics like incremental concept, opportunity cost concept, and risk and uncertainty. The document outlines the scope of business economics, including demand analysis, cost and production analysis, and pricing decisions. It explains that business economics is important as it enables managers to select suitable tools from economics to make better business decisions. However, it also notes some limitations of business economics like predictions being unpredictable and non-replicable.
Similar to M.e (20)
Basic principles in the application of managerial economics
Basic principles in the application of managerial economics
Recently uploaded
20 Comprehensive Checklist of Designing and Developing a Website
Dive into the world of Website Designing and Developing with Pixlogix! Looking to create a stunning online presence? Look no further! Our comprehensive checklist covers everything you need to know to craft a website that stands out. From user-friendly design to seamless functionality, we've got you covered. Don't miss out on this invaluable resource! Check out our checklist now at Pixlogix and start your journey towards a captivating online presence today.
Alt. GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using ...
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
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.
Removing Uninteresting Bytes in Software Fuzzing
Imagine a world where software fuzzing, the process of mutating bytes in test seeds to uncover hidden and erroneous program behaviors, becomes faster and more effective. A lot depends on the initial seeds, which can significantly dictate the trajectory of a fuzzing campaign, particularly in terms of how long it takes to uncover interesting behaviour in your code. We introduce DIAR, a technique designed to speedup fuzzing campaigns by pinpointing and eliminating those uninteresting bytes in the seeds. Picture this: instead of wasting valuable resources on meaningless mutations in large, bloated seeds, DIAR removes the unnecessary bytes, streamlining the entire process.
In this work, we equipped AFL, a popular fuzzer, with DIAR and examined two critical Linux libraries -- Libxml's xmllint, a tool for parsing xml documents, and Binutil's readelf, an essential debugging and security analysis command-line tool used to display detailed information about ELF (Executable and Linkable Format). Our preliminary results show that AFL+DIAR does not only discover new paths more quickly but also achieves higher coverage overall. This work thus showcases how starting with lean and optimized seeds can lead to faster, more comprehensive fuzzing campaigns -- and DIAR helps you find such seeds.
- These are slides of the talk given at IEEE International Conference on Software Testing Verification and Validation Workshop, ICSTW 2022.
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
Monitoring and observability aren’t traditionally found in software curriculums and many of us cobble this knowledge together from whatever vendor or ecosystem we were first introduced to and whatever is a part of your current company’s observability stack.
While the dev and ops silo continues to crumble….many organizations still relegate monitoring & observability as the purview of ops, infra and SRE teams. This is a mistake - achieving a highly observable system requires collaboration up and down the stack.
I, a former op, would like to extend an invitation to all application developers to join the observability party will share these foundational concepts to build on:
Climate Impact of Software Testing at Nordic Testing Days
My slides at Nordic Testing Days 6.6.2024
Climate impact / sustainability of software testing discussed on the talk. ICT and testing must carry their part of global responsibility to help with the climat warming. We can minimize the carbon footprint but we can also have a carbon handprint, a positive impact on the climate. Quality characteristics can be added with sustainability, and then measured continuously. Test environments can be used less, and in smaller scale and on demand. Test techniques can be used in optimizing or minimizing number of tests. Test automation can be used to speed up testing.
20240607 QFM018 Elixir Reading List May 2024
Everything I found interesting about the Elixir programming ecosystem in May 2024
UiPath Test Automation using UiPath Test Suite series, part 5
Welcome to UiPath Test Automation using UiPath Test Suite series part 5. In this session, we will cover CI/CD with devops.
Topics covered:
CI/CD with in UiPath
End-to-end overview of CI/CD pipeline with Azure devops
Speaker:
Lyndsey Byblow, Test Suite Sales Engineer @ UiPath, Inc.
“I’m still / I’m still / Chaining from the Block”
“An Outlook of the Ongoing and Future Relationship between Blockchain Technologies and Process-aware Information Systems.” Invited talk at the joint workshop on Blockchain for Information Systems (BC4IS) and Blockchain for Trusted Data Sharing (B4TDS), co-located with with the 36th International Conference on Advanced Information Systems Engineering (CAiSE), 3 June 2024, Limassol, Cyprus.
GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...
Sudheer Mechineni, Head of Application Frameworks, Standard Chartered Bank
Discover how Standard Chartered Bank harnessed the power of Neo4j to transform complex data access challenges into a dynamic, scalable graph database solution. This keynote will cover their journey from initial adoption to deploying a fully automated, enterprise-grade causal cluster, highlighting key strategies for modelling organisational changes and ensuring robust disaster recovery. Learn how these innovations have not only enhanced Standard Chartered Bank’s data infrastructure but also positioned them as pioneers in the banking sector’s adoption of graph technology.
GraphSummit Singapore | The Art of the Possible with Graph - Q2 2024
Neha Bajwa, Vice President of Product Marketing, Neo4j
Join us as we explore breakthrough innovations enabled by interconnected data and AI. Discover firsthand how organizations use relationships in data to uncover contextual insights and solve our most pressing challenges – from optimizing supply chains, detecting fraud, and improving customer experiences to accelerating drug discoveries.
Cosa hanno in comune un mattoncino Lego e la backdoor XZ?
ABSTRACT: A prima vista, un mattoncino Lego e la backdoor XZ potrebbero avere in comune il fatto di essere entrambi blocchi di costruzione, o dipendenze di progetti creativi e software. La realtà è che un mattoncino Lego e il caso della backdoor XZ hanno molto di più di tutto ciò in comune.
Partecipate alla presentazione per immergervi in una storia di interoperabilità, standard e formati aperti, per poi discutere del ruolo importante che i contributori hanno in una comunità open source sostenibile.
BIO: Sostenitrice del software libero e dei formati standard e aperti. È stata un membro attivo dei progetti Fedora e openSUSE e ha co-fondato l'Associazione LibreItalia dove è stata coinvolta in diversi eventi, migrazioni e formazione relativi a LibreOffice. In precedenza ha lavorato a migrazioni e corsi di formazione su LibreOffice per diverse amministrazioni pubbliche e privati. Da gennaio 2020 lavora in SUSE come Software Release Engineer per Uyuni e SUSE Manager e quando non segue la sua passione per i computer e per Geeko coltiva la sua curiosità per l'astronomia (da cui deriva il suo nickname deneb_alpha).
Essentials of Automations: The Art of Triggers and Actions in FME
In this second installment of our Essentials of Automations webinar series, we’ll explore the landscape of triggers and actions, guiding you through the nuances of authoring and adapting workspaces for seamless automations. Gain an understanding of the full spectrum of triggers and actions available in FME, empowering you to enhance your workspaces for efficient automation.
We’ll kick things off by showcasing the most commonly used event-based triggers, introducing you to various automation workflows like manual triggers, schedules, directory watchers, and more. Plus, see how these elements play out in real scenarios.
Whether you’re tweaking your current setup or building from the ground up, this session will arm you with the tools and insights needed to transform your FME usage into a powerhouse of productivity. Join us to discover effective strategies that simplify complex processes, enhancing your productivity and transforming your data management practices with FME. Let’s turn complexity into clarity and make your workspaces work wonders!
Securing your Kubernetes cluster_ a step-by-step guide to success !
Today, after several years of existence, an extremely active community and an ultra-dynamic ecosystem, Kubernetes has established itself as the de facto standard in container orchestration. Thanks to a wide range of managed services, it has never been so easy to set up a ready-to-use Kubernetes cluster.
However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
Let's Integrate MuleSoft RPA, COMPOSER, APM with AWS IDP along with Slack
Discover the seamless integration of RPA (Robotic Process Automation), COMPOSER, and APM with AWS IDP enhanced with Slack notifications. Explore how these technologies converge to streamline workflows, optimize performance, and ensure secure access, all while leveraging the power of AWS IDP and real-time communication via Slack notifications.
GraphSummit Singapore | Enhancing Changi Airport Group's Passenger Experience...
Dr. Sean Tan, Head of Data Science, Changi Airport Group
Discover how Changi Airport Group (CAG) leverages graph technologies and generative AI to revolutionize their search capabilities. This session delves into the unique search needs of CAG’s diverse passengers and customers, showcasing how graph data structures enhance the accuracy and relevance of AI-generated search results, mitigating the risk of “hallucinations” and improving the overall customer journey.
GraphSummit Singapore | The Future of Agility: Supercharging Digital Transfor...
Leonard Jayamohan, Partner & Generative AI Lead, Deloitte
This keynote will reveal how Deloitte leverages Neo4j’s graph power for groundbreaking digital twin solutions, achieving a staggering 100x performance boost. Discover the essential role knowledge graphs play in successful generative AI implementations. Plus, get an exclusive look at an innovative Neo4j + Generative AI solution Deloitte is developing in-house.
How to Get CNIC Information System with Paksim Ga.pptx
Pakdata Cf is a groundbreaking system designed to streamline and facilitate access to CNIC information. This innovative platform leverages advanced technology to provide users with efficient and secure access to their CNIC details.
Presentation of the OECD Artificial Intelligence Review of Germany
Consult the full report at https://www.oecd.org/digital/oecd-artificial-intelligence-review-of-germany-609808d6-en.htm
Recently uploaded (20)
20 Comprehensive Checklist of Designing and Developing a Website
20 Comprehensive Checklist of Designing and Developing a Website
Monitoring Java Application Security with JDK Tools and JFR Events
Monitoring Java Application Security with JDK Tools and JFR Events
Alt. GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using ...
Alt. GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using ...
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdf
Climate Impact of Software Testing at Nordic Testing Days
Climate Impact of Software Testing at Nordic Testing Days
UiPath Test Automation using UiPath Test Suite series, part 5
UiPath Test Automation using UiPath Test Suite series, part 5
GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...
GraphSummit Singapore | Graphing Success: Revolutionising Organisational Stru...
GraphSummit Singapore | The Art of the Possible with Graph - Q2 2024
GraphSummit Singapore | The Art of the Possible with Graph - Q2 2024
Cosa hanno in comune un mattoncino Lego e la backdoor XZ?
Cosa hanno in comune un mattoncino Lego e la backdoor XZ?
Essentials of Automations: The Art of Triggers and Actions in FME
Essentials of Automations: The Art of Triggers and Actions in FME
Securing your Kubernetes cluster_ a step-by-step guide to success !
Securing your Kubernetes cluster_ a step-by-step guide to success !
Let's Integrate MuleSoft RPA, COMPOSER, APM with AWS IDP along with Slack
Let's Integrate MuleSoft RPA, COMPOSER, APM with AWS IDP along with Slack
GraphSummit Singapore | Enhancing Changi Airport Group's Passenger Experience...
GraphSummit Singapore | Enhancing Changi Airport Group's Passenger Experience...
GraphSummit Singapore | The Future of Agility: Supercharging Digital Transfor...
GraphSummit Singapore | The Future of Agility: Supercharging Digital Transfor...
How to Get CNIC Information System with Paksim Ga.pptx
How to Get CNIC Information System with Paksim Ga.pptx
Presentation of the OECD Artificial Intelligence Review of Germany
Presentation of the OECD Artificial Intelligence Review of Germany
M.e
- 1. MANAGERIAL ECONOMICS An Analysis of Business Issues Howard Davies and Pun-Lee Lam Published by FT Prentice Hall
- 2. Chapter 1: The Definition and Scope of Managerial Economics Objectives: After studying the chapter, you should understand: 1. the subject matter of Managerial Economics 2. the analytical approach used in Managerial Economics
- 3. What is Managerial Economics? Douglas - “Managerial economics is .. the application of economic principles and methodologies to the decision-making process within the firm or organization.” Pappas & Hirschey - “Managerial economics applies economic theory and methods to business and administrative decision-making.” Salvatore - “Managerial economics refers to the application of economic theory and the tools of analysis of decision science to examine how an organisation can achieve its objectives most effectively.”
- 4. What is Managerial Economics? Howard Davies and Pun-Lee Lam - “ It is the application of economic analysis to business problems; it has its origin in theoretical microeconomics.”
- 5. These Definitions Cover a Number of Different Approaches 1. Analysis based on the theory of the firm 2. Analysis based upon management sciences 3. Analysis based upon industrial economics Related to, but not the same as management science and industrial economics.
- 7. Definitions & assumptions Predictions If predictions not supported by data, model is amended or discarded If predictions borne out by data, the model is valid, for the moment Theoretical analysis Predictions tested against data
- 8. Should Assumptions be Realistic? The assumption of profit- maximising may be unrealistic or inaccurate However, what matters is the explanatory or predictive power of a theory (or model), not the descriptive realism of its assumptions. A model built on unrealistic assumptions may give good predictions. Assumptions are a necessary simplifying device Example: Overtaking
- 10. The Use of Economic Models Positive Economics:- Derives useful theories with testable propositions about WHAT IS. Normative Economics:- Provides the basis for value judgements on economic outcomes.WHAT SHOULD BE
- 13. What is the purpose of economic analysis? Why do we want to apply economic analysis to business problems? For the academic economist : to understand, to make predictions about firm’s behavior The “ positive ” approach to theory: What is? For the businessperson : “to assist decision-making”, to provide decision-rules which can be applied The “ normative ” approach to theory: What should be? These purposes are different, they can lead to misunderstanding, and economists are not always honest about the limitations of their approach for practical purposes.
- 14. What are these limitations? If the aim is prediction, unrealistic assumptions are acceptable and may be needed; for instance, the firm may be assumed to behave “as if” its managers had perfect knowledge of its environment If the aim is to produce decision-rules which can be applied by practising managers, unrealistic assumptions will produce decision-rules which are not operational for instance, set output and price by MC=MR
- 15. How Can Managerial Economics Assist Decision-Making? 1. Adopt a general perspective, not a sample of one 2. Simple models provide stepping stone to more complexity and realism 3. Thinking logically has value itself and can expose sloppy thinking
- 17. In industrial economics (or industrial organization) , the emphasis is (or was) upon the behavior of the whole industry, in which the firm is simply a component. In managerial economics , the emphasis is upon the firm, the environment in which the firm finds itself, and the decisions which individual firms have to take. Links between Managerial Economics and Industrial Economics
- 18. What is Industrial Organization? It studies how the performance of an industry is related to its structure, that is, to the number and size of firms it contains. It is the study of markets for goods and of the firms which produce them. It is the study of industry. It is more concerned with why markets are structured the way they are and behave the way they do.
- 20. The Structure-Conduct-Performance Paradigm: Basic Conditions : factors which shape the market of the industry, e.g. demand, supply, political factors Structure : attributes which give definition to the supply-side of the market, e.g. economies of scale, barriers to entry, industry concentration, product differentiation, vertical integration. Conduct : the behavior of firms in the market, e.g. pricing behavior advertising, innovation. Performance : a judgement about the results of market behaviour, e.g. efficiency, profitability, fairness/income distribution, economic growth. How can the government improve the performance in an industry?
- 21. Basic Conditions Structure Conduct Performance Government Policy
- 22. Management science: is essentially concerned with techniques for the improvement of decision-making and hence it is essentially normative;firms are not assumed to find the optimal solutions for themselves. They are found by the researchers who then present them as prescriptions for what the firm should do. Managerial economics: is often concerned with finding optimal solutions to decision problems.However, the primary purpose of using models is to predict how firms will behave, not to advise them what ought to do. Managers are assumed to find the optimal solutions for themselves and that is how predictions are made. Links between Managerial Economics and Management Science