Managerial Economics - PDF
20 Pages4868 Words338 Views
Added on 2020-10-23
Managerial Economics - PDF
Added on 2020-10-23
ShareRelated Documents
Managerial Economics
Table of ContentsINTRODUCTION...........................................................................................................................1SECTION “A”.................................................................................................................................11) Effect on demand curve, supply curve, equilibrium price and equilibrium quantity of events......................................................................................................................................................12) Features of Perfect Competition..............................................................................................83) Point at which firm should stop hiring worker in a perfect competitive market form............94) Computation of elasticity.......................................................................................................105) Tools for government intervention to deal with market failure.............................................13SECTION “B”...............................................................................................................................141) a. Supply schedule and the various factors affecting the supply in the market.....................14b. Graph showing changes in the equilibrium price and quantity due to change in supply.......152) a. Characteristics of the emerging market form in the telecom industry...............................16b. Pricing policy used in Oligopoly industry.............................................................................17c. Profit maximisation strategy..................................................................................................17CONCLUSION..............................................................................................................................18REFERENCES..............................................................................................................................19
INTRODUCTIONManagerial economics is used synonymously with business economics. It is a branch ofeconomics that deals with the application and analysis to decision making technique used inbusiness by its management units. This economics theory is used to bridge the gap between“theory and practice”. That will help in covering the gap between the problems of logic and theproblems of policy. It helps the management by using analytical skills and highly developedtechniques in solving complex issues of successful decision making and planning for future. Thiseconomics theory helps managers to recognize how economic forces affect organisations anddescribes the economic consequences. In this project report information related to demand,supply and equilibrium price and quantity is mentioned (Bazerman and Moore, 2013). Togetherwith this different types of market and response of businesses to them. Elasticity of demand andsupply and related concepts are elaborated. Pricing policies and profit maximizing strategies withsuitable graphs is described. SECTION “A”1) Effect on demand curve, supply curve, equilibrium price and equilibrium quantity of eventsa. The market of newspaper in townCase 1: The salaries of journalists go up. Increase in the salary of the journalists will leads to rise in the cost of the products thatwill ultimately change the price of the newspaper. The graph of this is as follows- 1
A newspaper is a product that possess relatively inelastic demand. That meanspercentage change in quantity demanded is less then percentage change in price of the product.As newspaper is a kind of necessary good whose quantity demanded will be affected by rise inprice of the goods but this effect will be less then price change. As rise in cost will result in priceof the product and equilibrium price will also be affected and will get reduced. Together withthis equilibrium quantity will also reduced due to rise in price (Ben-David, Graham and Harvey,2013). Case 2: Their is a big news event in town, which is reported in the newspaperThis event will leads to increase in demand of newspaper demanded. To satisfy thequantity demanded there is a need to increase in the supply of newspaper and price of theproduct will also be affected. From the above graph it can be analysed that when demand of newspaper increases andrelatively supply will not be increased then prices of the product will moves up. Equilibriumprice will increase and equilibrium quantity will reduced. When supply is also increased then it2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Managerial Economicslg...
|27
|4358
|268
Managerial Economics: Demand, Supply, and Perfect Competitionlg...
|21
|5844
|84
Economics - Assignment Sample PDFlg...
|27
|5358
|60
Assignment on economics PDFlg...
|27
|5204
|103
Managerial Economics Assignment - (Doc)lg...
|20
|5343
|72
Managerial Economics: Demand and Supply Analysislg...
|15
|3841
|256