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Scope of Economics
Scope of Economics Micro Economics This is considered to be basic economics. Microeconomics may be defined as that branch of economic analysis which studies the economic behaviour of the individual unit, maybe a person, a particular household, or a particular firm. Macro Economics Macroeconomics may be defined as that branch of economic analysis which studies the behaviour of not one particular…
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What is Economics
What is Economics? Economics is the science that deals with production, exchange and consumption of various commodities in economic systems. It shows how scarce resources can be used to increase wealth and human welfare. The central focus of economics is on the scarcity of resources and choices among their alternative uses. Table of Content [Show] Economics is…
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Discuss Managerial Economics
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.
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Useful Resources
The following resources contain additional information on Managerial Economics. Please use them to get more in-depth knowledge on this. Useful Links on Managerial Economics Useful Books on Managerial Economics
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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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Investment Under Uncertainty
Uncertainty is defined as a situation where there is a possibility of differing outcomes. For example, in an uncertain situation, the managers should evaluate the chance of difference in expected cash flows. They have to estimate whether the NV would be negative or the IRR would be less than the cost of capital. Statistical Techniques…
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Investment Under Certainty
Capital Budgeting is the process by which the firm decides which long-term investments to make. Capital Budgeting projects, i.e., potential long-term investments, are expected to generate cash flows over several years. Capital Budgeting also explains the decisions in which all the incomes and expenditures are covered. These decisions involve all inflows and outflows of funds…
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Pricing Strategies
Pricing is the process of determining what a company will receive in exchange for its product or service. A business can use a variety of pricing strategies when selling a product or service. The price can be set to maximize profitability for each unit sold or from the market overall. It can be used to…
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Market Structure & Pricing Decisions
Price determination is one of the most crucial aspects in economics. Business managers are expected to make perfect decisions based on their knowledge and judgment. Since every economic activity in the market is measured as per price, it is important to know the concepts and theories related to pricing. Pricing discusses the rationale and assumptions…
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Cost & Breakeven Analysis
In managerial economics another area which is of great importance is cost of production. The cost which a firm incurs in the process of production of its goods and services is an important variable for decision making. Total cost together with total revenue determines the profit level of a business. In order to maximize profits…