Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Principles Of Economics
Lecture plan
Objectives
What is Economics?
Basic Assumptions
Managerial Economics
Managerial Decisions
Summary
Objectives
What is Economics?
Basic Assumptions
Ceteris Paribus
Latin phrase
With other things (being) the same or all other
things being equal.
Rationality
Consumers maximize utility subject to given money
income.
Producers maximize profit subject to given resources
or minimize cost subject to target return.
study of aggregates.
Managerial Economics
Managerial Economics
Contd
utility.
Incremental:
Discounting Principle
Time
Outflow
PVF =
1
(1 r) n
where
PVF = Present Value of Fund,
n = period (year, etc.)
R = rate of discount
Assumptions
Food
Technically
Infeasible Area
FP
FQ
Productively
Inefficient Area
O
CP
CQ
Clothing
Financial Management
From
Equity
Debt
How
to allocate resources
How much profit to be retained/distributed
and Salary
Training and development
Retirement
Contd
Marketing Management
Which
product
For whom
What price
How to sell
Operations Management
Which
technology
Inputs
Processing
channels
Use of information Technology
Quantitative Analysis
Managerial Economics
Summary
Summary