Baumol's theory of the firm proposes that businesses aim to maximize sales rather than profits. The theory states that managers seek to rapidly grow market share subject to earning at least normal profits. This generally involves charging lower prices than profit maximization to increase sales. Businesses are assumed to operate in an oligopolistic market with downward sloping demand curves. The theory argues that businesses choose sales maximization over profit maximization because larger sales volumes lead to economies of scale, higher salaries, and prestige for managers. Sales are maximized at the point where marginal revenue equals average revenue (or total cost equals total revenue), allowing normal profits but not necessarily maximum profits.
Difference between macro and micro economicsMaddali Swetha
Paper presentation made by Maddali Laxmi Swetha, MBA (HR)
Maddali Swetha Blog - http://maddaliswetha.blogspot.com/ https://in.linkedin.com/in/maddali-swetha-a0a424a6
https://twitter.com/maddali_swetha
E-Mail ID: maddali_swetha@yahoo.com - Feedback
Students should be able to:
Understand the assumptions of perfect competition and be able to explain the behaviour of firms in this market structure.
Understand the significance of firms as price-takers in perfectly competitive markets. An understanding of the meaning of shut-down point is required. The impact of entry into and exit from the industry should be considered.
A firm is a Business unit which owns,controls and manages a plant.Such a Business unit may be a sole Proprietor,a partnership,a company or a cooperative enterprise.The Firm is the owner of the plant and it controls the operation of plants.
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Mohammad Abadullah
Dilruba Jahan Popi
Rabiul Islam
Effat Ara Saima
MD. Rajib Mojumder (Captain)
Difference between macro and micro economicsMaddali Swetha
Paper presentation made by Maddali Laxmi Swetha, MBA (HR)
Maddali Swetha Blog - http://maddaliswetha.blogspot.com/ https://in.linkedin.com/in/maddali-swetha-a0a424a6
https://twitter.com/maddali_swetha
E-Mail ID: maddali_swetha@yahoo.com - Feedback
Students should be able to:
Understand the assumptions of perfect competition and be able to explain the behaviour of firms in this market structure.
Understand the significance of firms as price-takers in perfectly competitive markets. An understanding of the meaning of shut-down point is required. The impact of entry into and exit from the industry should be considered.
A firm is a Business unit which owns,controls and manages a plant.Such a Business unit may be a sole Proprietor,a partnership,a company or a cooperative enterprise.The Firm is the owner of the plant and it controls the operation of plants.
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Mohammad Abadullah
Dilruba Jahan Popi
Rabiul Islam
Effat Ara Saima
MD. Rajib Mojumder (Captain)
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Afridi Hasan
Shahidul Islam
Aminul Islam Milon
Md. Maznur Rahman
Abdullah Al Mamon
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
2. BAUMOL’S THEORY OF
FIRM
• According to Baumol, every business firm aims at
maximization.
• Price and quantity demanded- Sales revenue of the firm.
• His hypothesis is known as sales maximization or revenue
maximization theory
• According to him, sales has became an end by itself and
accordingly sales maximization has became the ultimate
objective of the firm.
3. SALES MAXIMIZATION
• Prof Baumol in his article on the theory of Oligopoly presented
a managerial theory of the firm based on the sales
maximisation.
• Sales maximisation is achieved when:
• AC = AR or TC = TR
• In other words, a business is selling as much as they can
without making a loss.
• At the sales maximisation output, there are normal profits only
and no supernormal profits/loss
4. WHY DO BUSINESSES
CHOOSE A SALES
MAXIMISATION
OBJECTIVE?
• They want to achieve a rapid growth of market
share (subject to the constraint that they need to achieve a
minimum rate of profit (normal profit) to justify staying in the
market in the long run).
5. WHAT DOES SALES
MAXIMISATION INVOLVE?
• Sales maximisation typically involves businesses charging
lower prices for their products contrasted with profit
maximisation.
• This can be good news for consumer welfare in the short run
as the level of consumer surplus increases.
6. A NUMERICAL EXAMPLE OF SALES
MAXIMISATION WHILE ACHIEVING
NORMAL PROFITS
• Average cost = average revenue at an output of 4 units per
week
• At output level 5, a loss is made because average revenue is
less than average cost (ie TR<TC)
7. ASSUMPTIONS:
THE THEORY IS BASED ON
THE FOLLOWING
ASSUMPTIONS:
• 1. There is a single period time horizon of the firm.
• 2. The firm aims at maximising its total sales revenue in the
long run subject to a profit constraint.
• 3. The firm’s minimum profit constraint is set competitively in
terms of the current market value of its shares.
• 4. The firm is oligopolistic whose cost cures are U-shaped and
the demand curve is downward sloping. Its total cost and
revenue curves are also of the conventional type.
8. BAUMOL’S FINDINGS
• Baumol’s findings of oligopoly firms in America reveal that
they follow the sales maximisation objective. According to
Baumol, with the separation of ownership and control in
modem corporations, managers seek prestige and higher
salaries by trying to expand company sales even at the
expense of profits.
• Being a consultant to a number of firms, Baumol observes
that when asked how their business went last year, the
business managers often responded, “our sales were up to
three million dollars.” Thus, according to Baumol, revenue or
sales maximisation rather than profit maximisation is
consistent with the actual behaviour of firms.
9. EXPLANATION
• Baumol cites evidence to suggest that short-run revenue
maximisation may be consistent with long-run profit maximisation.
But sales maximisation is regarded as the short-run and long-run
goal of the management. Sales maximisation is not only a means
but an end in itself He gives a number of arguments in support of his
theory.
• 1. A firm attaches great importance to the magnitude of sales and is
much concerned about declining sales.
• 2. If the sales of a firm are declining, banks, creditors and the capital
market are not prepared to provide finance to it.
• 3. Its own distributors and dealers might stop taking interest in it.
• 4. Consumers might not buy its product because of its unpopularity.
10. • 5. Firm reduces its managerial and other staff with fall in sales.
• 6. If firm’s sales are large, there are economies of scale, the firm
expands and earns large profits.
• 7. Salaries of workers and management also depend to a large
extent on more sales and the firm gives them bonus and other
facilities.
• By sales maximisation, Baumol means maximisation of total
revenue. It does not imply the sale of large quantities of output, but
refers to the increase in money sales (in rupee, dollar, etc.). Sales
can increase upto the point of profit maximisation where the
marginal cost equals marginal revenue. If sales are increased
beyond this point, money sales may increase at the expense of
profits. But the oligopolistic firm wants its money sales to grow even
though it earns minimum profits.
11. CONCEPT ON PROFIT
• Minimum profits refer to the amount which is less than maximum
profits. The minimum profits are determined on the basis of firm’s
need to maximize sales and also to sustain growth of sales.
Minimum profits are required either in the form of retained earnings
or new capital from the market.
• The firm also needs minimum profits to finance future sales. Further,
they are essential for a firm for paying dividends on share capital
and for meeting other financial requirements. Thus minimum profits
serve as a constraint on the maximisation of a firm’s revenue.
“Maximum revenue will be obtained only”, according to Baumol, “at
an output at which the elasticity of demand is unity, i.e., at which
marginal revenue is zero. This is the condition which replaces the
“marginal cost equals marginal revenue profit maximisation rule.”
12. • Baumol’s model is illustrated in Figure 5 where TC is the total
cost curve, TR the total revenue curve, TP the total profit
curve and MP the minimum profit or profit constraint line. The
firm maximises its profits at OQ level of output corresponding
to the highest point B on the TP curve. But the aim of the firm
is to maximise its sales rather than profits.
13. • The output OK will not maximise sales as the minimum profits OM are
not being covered by total profits KS. For sales maximisation, the firm
should produce that level of output which not only covers the minimum
profits but also gives the highest total revenue consistent with it. This
level is represented by OD level of output where the minimum profits
DC (=0M) are consistent with DE amount of total revenue at the price
DE/OD, (i.e., total revenue/total output).
• Baumol’s model of sales maximisation points out that the profit
maximisation output will be smaller than the sales-maximisation output
OD, and price higher than under sales maximisation. The reason for a
lower price under sales maximisation is that both total revenue and total
output are equally higher while. under profit maximisation, total output is
much less as compared to total revenue. Imagine if QB is joined to TR
in Figure 5. “If at the point of maximum profit” writes Baumol, “the firm
earns more profit than the required minimum, it will pay the sales
maximiser to lower his price and increase his physical output.”