Author: admin
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Demand & Elasticities
The ‘Law Of Demand’ states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa. Demand elasticity is a measure of how much the quantity demanded will change if another factor changes. Changes in Demand Change in demand…
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Market System & Equilibrium
The Economic Systems Economic market system is a set of institutions for allocating resources and making choices to satisfy human wants. In a market system, the forces and interaction of supply and demand for each commodity determines what and how much to produce. In price system, the combination is based on least combination method. This…
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Regression Techniques
Regression is a statistical technique that helps in qualifying the relationship between the interrelated economic variables. The first step involves estimating the coefficient of the independent variable and then measuring the reliability of the estimated coefficient. This requires formulating a hypothesis, and based on the hypothesis, we can create a function. If a manager wants…
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Economic Analysis & Optimizations
Economic analysis is the most crucial phase in managerial economics. A manager has to collect and study the economic data of the environment in which a firm operates. He has to conduct a detailed statistical analysis in order to do research on industrial markets. The research may comprise of information regarding tax rates, products, competitor’s…
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Business Firms & Decisions
Business firms are a combination of manpower, financial, and physical resources which help in making managerial decisions. Societies can be classified into two main categories − production and consumption. Firms are the economic entities and are on the production side, whereas consumers are on the consumption side. The performances of firms get analyzed in the…
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Managerial Economics Overview
A close interrelationship between management and economics had led to the development of managerial economics. Economic analysis is required for various concepts such as demand, profit, cost, and competition. In this way, managerial economics is considered as economics applied to “problems of choice’’ or alternatives and allocation of scarce resources by the firms. Managerial economics…
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Managerial Economics Resources
Managerial economics is concerned with the application of economic concepts and economic analysis to the problems of formulating rational managerial decisions. This tutorial covers most of the topics of managerial economics including micro, macro, and managerial economic relationship; demand forecasting, production and cost analysis, market structure and pricing theory. Audience This tutorial is aimed at…
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Profit Maximization : Meaning, Elements, Conditions and Formula
What is Profit Maximization? Profit Maximization is the core objective of many businesses that represent the pursuit of strategies to achieve the highest possible net income. This involves identifying optimal production levels, pricing strategies, and cost management practices to ensure revenue exceeds costs, leading to increased profitability. In essence, it’s about striking the right balance…
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Long-Run Equilibrium under Perfect, Monopolistic, and Monopoly Market
In layman’s language, a Market is a place where the exchange of goods takes place. In other words, a place where the purchase and sale of goods take place is a market. The market is the nervous system of modern economic life where producers and consumers carry out the sale and purchase transactions. The market has a…
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Distinction between the four Forms of Market(Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly)
The number and types of firms operating in an industry and the nature and degree of competition in the market for the goods and services is known as Market Structure. To study and analyze the nature of different forms of market and issues faced by them while buying and selling goods and services, economists have classified the…