Unit 1 Managerial economics: Meaning, nature and scope;Economic theory and managerial economic; Managerialeconomics and business decision making; Role of managerial economics.Unit 2Demand Analysis: Meaning, types and determinants of demand.Unit 3Cost Concepts: Cost function and cost outputrelationship; Economics and diseconomies of scale;Cost control and cost reduction.Unit 4Production Functions: Pricing and output decisionsunder competitive conditions; Government control overpricing; Price discrimination; Price discount anddifferentials.Unit 5Profit: Measurement of profit; Profit planning andforecasting; Profit maximization; Cost volume profitanalysis; Investment analysis.Unit 6National Income: Business cycle; Inflation and deflation;Balance of payment; Their implications in managerialdecision.
LESSON – 1
BSPATIL
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.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
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
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.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
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
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
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.
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June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
2. •Managerial economics and business economics are
used interchangeably. Of late however managerial
economics has become more popular.
•Managers have to take decisions everywhere. They
face situations daily which require decision making
ability.
•The nature of these problems mainly economic,
that is, making the best of the scarce resources.
The managers have to juggle a situation in which
they are required to maximize the output with
scarce resource viz., land ,labour, capital.
3. Types of problems; Problems faced by management
executives at various levels are twofold viz.,
1.Decision making
• It is process of selecting one action from two or more
alternative course of action.
• There are several alternative courses of action available to
a manager. He may have to decide in favour of one of
them to achieve desired or set of objectives of the firm.
• The managers decision must lead to the most efficient use
of available resources. Once decision is made about a
particular goal to be achieved, plans as to production,
pricing, capital, raw materials, labour etc are prepared.
4. 2. forward planning
• All decisions are to be taken under conditions of uncertainty.
Forward planning has to be done when the future is uncertain.
• None can predict with accuracy, the nature and extent of
prospective demand in the future price trends, possible changes in the
consumer tastes and fashions, probable shift in the government
policies,
• If knowledge of the future is perfect, plan could be formulated
without error and need for revision.
•Managers are thus engaged in a continuous process decision making
through an uncertain future and the overall problem confronting them
is one of adjusting to uncertainty.
•Managerial economics is, therefore, an important aid to managers in
taking decisions under condition of uncertainty..
5. Managerial economics?
• According to Mc Nair and Merium, managerial
economics consists of the use of economic modes of
thought to analyse business situations.
• Spencer and Siegelman have defined managerial
economics as “ the integration of economic theory with
business practice for the purpose of facilitating decision
making and forward planning by management”.
• Managerial economics therefore defined as the
discipline which deals with the application of economic
theory to business management.Therefore managerial
economics serves as bridge between economics and
business management.
7. Aspects of Application
1. Estimating economic relationships viz., measurement of various
types of elasticities of demand such as price elasticity, income
elasticity, cross elasticity promotional elasticity, cost-output
relationships etc.
3.Predicting relevant economic quantities.eg., profit, demand,
production, costs, pricing, capital etc.
4.Using economic quantities in decision making and forward
planning.
5. Understanding significant external forces constituting the
environment in business is operating and to which it must
adjust. eg. ,business cycles, fluctuations in national income and
government policies.
8. Characteristics of ME:
1. Managerial economics is micro-economic in character.This
is because unit of study is firm.
2. ME largely uses the that body of economic concepts and
principles which known as “theory of firm” or “economics
of firm”
3. ME is pragmatic.It considers the particular environment of
decision making
4. ME belongs to normative or prescriptive economics
5. Macro economics also useful to managerial economics since
it provides an intelligent understanding of the environment
in which the business must operate.
10. 1. Demand Analysis and forecasting
• Managerial Decision making depends on accurate
estimates of demand for goods produced by the
firm.
• Forecast of future sales is essential. Forecast serves
as guide to management for strengthening market
position and enlarging profits.
• Demand analysis and Forecasting therefore is
essential for business planning and occupies
strategic place in managerial economics.
Eg., Demand determinants, Demand distinctions and
demand forecasting
11. 2. Cost Analysis
• A study of economic costs combined with the data drawn from
firms’ accounting records, can yield significant cost estimates
that are useful for managerial decisions.
• Eg.,cost concepts and analysis, cost-output relationships,
economies of scale, cost control and cost reduction.
3. Production and Supply analysis
• Production analysis frequently proceeds in terms of physical
terms and mainly deals with production functions and their
managerial uses.
• Supply analysis deals with various aspects of supply of a
commodity.
• Eg., Supply schedule, curves and function, Law of supply etc.
12. 4. Profit management
• In a world of uncertainty expectations are not always
realized so that profit planning and measurement
constitute the difficult area of managerial economics.
•Eg., Nature and Measure of profit, profit policies and
techniques of profit planning like break even analysis.
5. Capital Management
• It is most complex and troublesome for the business
manager.
• Briefly capital management implies planning and control
of capital expenditure.
•Eg., cost of capital, rate of return, selection of projects.
14. 1. Managerial economics and economics
• Price elasticity of demand
• Income elasticity of demand
• Opportunity cost
• Marginal revenue product
• Speculative motive
• Production function
• Balanced growth
• Liquidity preference
2. ME and Statistics
• Analysis of quantitative data to reach appropriate functional
relationships involved in decision making.
• Employs statistical methods of empirical testing of
economic generalization
• Theory of probability provide the logic for dealing with
uncertainty.
15. 3. ME and Mathematics
• Managerial economics is metrical in character,
estimating various economic relationships, predicting
relevant economic quantities and using them in decision
making and forward planning.
• ME economics makes use of geometry, trigonometry,
algebra but also mathematical tools and concepts such
as Logarithms and exponentials, vectors, determinants,
matrix, calculus, integration. Operational research
closely related to ME is mathematical in character
applied to solve business problems.
16. 4. ME and Accounting
Accounting assists in recording the financial operations
of the business firm.Accounting information is principle
source of information for managerial economist for
decision-making.
5. ME and Operational Research
Important problems of managerial economics are solved
with the help of OR techniques like linear programming,
game theory, inventory models, decision theory.
Problems like resource allocation, competitive problems,
waiting line problems, and inventory problems.
17. Uses of Managerial Economics.
1. It accomplishes the objective of building a suitable
tool kit for traditional economics for decision
making.
2. It takes aid of other academic disciplines having a
bearing upon the business decisions of a manager in
view of various explicit and implicit constraints
subject to to which resource allocation is to be
optimized.
3. It helps in reaching a variety of business decisions in
a complicated environment.
18. Cont….
4. It makes a manager a more competent model builder.
5. It serves as Integrating agent by coordinating the
different areas and bringing to bear on decisions of
each department or specialist the implications
pertaining to other functional areas.
6. It serves as an instrument in furthering the economic
welfare of the society through socially oriented
business firms.
19. Specific functions of managerial economist
1.Sales forecasting
2.Industrial market research
3.Economic analysis of competing companies
4.Pricing problems of Industry
5.Capital Projects
6.Production programmes
7.Investment analysis and forecasts
8.Advice on trade and public relations
9.Advice on primary commodities
10.Advice on foreign exchange
11.Economic analysis of agriculture
12.Analysis of underdeveloped economies
13.Environmental forecasting
20. In Indian context……..
1. Forecasting for demand and supply
2. Production planning at mico and macro levels
3. Capacity planning and product mix determination
4. Economics of various production lines
5. economic feasibility of new production lines/
processes and projects
6. Assistance in preparation of overall development plans
7. Preparation of periodical economic reports.
8. Keeping management informed about national and
international developments on economic matters
9. Preparing articles, papers, speeches for management
for various chambers, committees, seminars, conferences
etc.
21. Responsibilities of managerial economist
1. Keeps in mind main objectives of business o make
profit on its invested capital.
2. Responsible for successful forecasts.
3. Helping management in decision making
4.Alert management at the earliest in case errors found
in his forecast
5. Establish and maintain many contacts with individuals
and data sources which would be immediately available
to the other members of the management.
22. Basic Process of Decision Making
► Managerial economics serves as ‘ a link between traditional economics
and the decision making sciences ‘ for decision making.
Traditional Economics/
Economic theory.
Micro & macro economics
Managerial
economics
Optimal solution to business
problems
Decision sciences
(tools & techniques
of analysis)
Mathematical sciences
Decision-Problem
27. 1. Opportunity cost Principle
Opportunity cost of a decision meant the sacrifice of
alternatives required by that decision. It is the cost
involved in any decision consists of the sacrifice of
alternatives required by that decision.If There are no
sacrifices, there is no cost.
Opportunity cost of a decision is the sacrifice of the next best
alternative course of action available
Eg.,1.Opportunity cost of funds involved in ones’ own
business is the interest that could be earned on those funds
had they been employed in other ventures
2.The opportunity cost of the time an entrepreneurdevotes to
his own business is the salary he could earn by seeking
employment.
Contd…
28. Contd….
3.Opportunity cost of holding Rs.500 cash in hand for one
year is the 10% rate of interest, which would have been
earned, had the money been kept as fixed deposit in a
bank.
4.The opportunity cost of using a machine that is useless for
any other purpose is zero since its use requires no sacrifice
of other opportunities.
Contd…
29. Contd…
Points to remember
1.OC of a given sum of money can never be zero
2.All decisions which involve choice must involve OC
calculation.
3.OC may either real or monetary, implicit or explicit,
quantifiable or non-quantifiable
4.Different concepts of trade off such as indifference curves,,
Isoquants, Phillips curve are all an opportunity cost.
5.OC directly applicable to make or buy decision,
breakdown or preventive maintainance of machines,
Replacement or new investment decision.
6.Minimisation of opportuiny costs should be the decision of
a manager for optimal allocation of resources given his
objectives and constraints.
7.The accountant never considers opportunity costs:he only
considers explicit cost.
8.The opportunity cost of unutilized plant capacity is zero.
30. 2.Incremental Principle.
This concept involves estimating the impact of decision
alternatives on costs and revenues, emphasizing the changes
in total costs and total revenue resulting from changes in
prices, procedures, investments or whatever may be at stake
in the decision.
It may be defined as change in the total cost due to specific
decision
Two basic components of Incremental reasoning are:
1. Incremental cost, defined as the change in total cost
resulting from a particular decision.
Contd….
31. 2. Incremental Revenue, defined as change in total revenue
resulting from a particular decision
IC = dTC / dQ
A decision is obviously a profitable only if-
a) It increases revenue more than a profit
b) It decreases some costs to a greater extent than it
increases others
c) It increases some revenue more than it decreases others
d) It reduces costs more than revenue
Managerial rule of thumb
IR > IC
32. 3. Principle of time perspective
Managerial economists are also concerned with the short run
and long run effects of decisions on revenues as well as costs.
It is important problem in decision making, is to maintain
right balance between long run and short run considerations.
A decision may be made on the basis of short run
considerations, but may as time elapses have long run
repercussions which makes more or less profitable than it at
first appeared.
Short run decisions- bus company has to maintain extra tyres
book seller keeps extra stock during
start of schools
Long Run decisions-growth, development and expansion
Just-in-time strategy adopted for successful business.
33. 4.Discounting Principle
Fundamental idea in economics is that a rupee tomorrow is
worth less than a rupee today. similarly a bird in hand is worth
two in the bush .
Discounting principle can be stated as “ if a decision affects
costs and revenues at future dates, it is necessary to discount
those costs and revenues to present values before a valid
comparison of alternatives is possible.
Present value (V) =Amount (A) / (1+ i )
34. 5.Equimarginal principle
This principle deals with allocation of available resources
among the alternative activities.Acc. to this principle, a facor
input should be employed in different activities in such
proportion that its value of marginal product is equal in all
theuses I.e, optimal is reached.This generalization is called
equimarginal principle.
(VMPL)a=(VMPL)b=(VMPL)c=(VMPL)d
This principle is useful in investment and allocation of
resources.
35. Application of equimarginal principle in the business or managerial
Activity is illustrated as below,
•Multi market Territories-Sales Revenue Maximization
MR1=MR2=MR3…MRn
•Multi plant monopolist- Cost minimization
MC1=MC2=MC3…MCn
• Multi product firm-profit maximization
MP1=MP2=MP3 …MPns
A manager has to either maximise or minimise outcome.It is
Referred as optimisation technique.This involves finding the
value of independent or determining business variable that would
resultn in maximisation of the value of the dependent variable.
36. Rule of maximisation
Profit of a firm is maximised when the difference between total
revenue and total cost is maximum
p = TR - TC
TR = P * Q
37. Aspects of equimarginal principle need clarification
1. the values of marginal products are net of incremental
costs
2. if the revenues resulting from an activity is to occur
in future, these revenues ought to be discounted in the
alternative activities are possible.
3. The measurement of value of marginal product may
have to be corrected if the expansion of an activity requires
reduction in the prices of the output.
4. This principle may break under sociological
pressures.