There are six steps involved in decision making system. The first step is defining the problems of a respective situation. The first step of the decision making is the key factor of this model. This step mainly…
Download file to see previous pages...
The next step of the decision making model is to explore alternative options or solutions. Decision makers always face some challenges at the time of taking decisions. Decision makers are required to have some alternatives, which influences their decisions. The forth step of the decision making model is to make prediction for the future consequences. Prediction is important for decision makers to be prepared for the future. The fifth step is to prepare and make a selection of all the outcomes of the model and last and very important is to execute a sensitivity analysis for ensuring that decisions are made on the basis of analysis. For instance, absence of any step in the procedure of decision making will be accountable for inappropriate analysis of a situation, which will be accountable for making unsuitable decision by managers leading to losses in businesses (Samuelson and Marks 7-14).
Marginal analysis is an important factor in managerial economics for the managerial decision making. There are several advantages of marginal analysis in the business as well as individual life. Marginal analysis helps to maintain the balances among the desire of individual needs and business needs. A firm is benefited from marginal analysis in the procedure of decision making, so that business operations can be conducted systematically. Additionally, marginal analysis aids policy makers of firms for managing the resources in a proper manner (Samuelson and Marks 29-75).
The marginal cost is the additional cost, which occurs at the time of production. Marginal cost includes the extra cost of labour and materials cost. On the other hand, marginal revenue is the additional profits earn by a firm at the time of surplus sale of products. Marginal revenue aids a company in performing business operations in a better competitive nature. Marginal analysis is mainly calculated at the time of additional turnover. In this
...Download file to see next pagesRead More
a. Reasoning 5 2. b. Change in Methods of Production of Australia 6 2. c. Why Do Tourists Pay Higher Prices for Goods and Services in a Foreign City than the Local Residents of That Country? 7 3.0. Complementary Products: Bread and Butter 7 Condition (a) 8 Condition (b) 9 4.
This is the opportunity cost of the decision, thus opportunity cost can be defined as the next best alternative given up. Therefore, opportunity cost is the value of something that is foregone to achieve something else. The concept of opportunity cost can be graphically shown by the production possibility curve.
We expect that students will make good use of the economic theory covered in the lectures and that they include diagrams or figures where appropriate. Diagrams should be carefully labeled and an explanation of their features and relevance to the argument given.
Media economics, thus, encompasses in its scope policies and patterns of media groups and its branches like journalism, news industry, film industry, print, broadcast, advertisement, public relations and entertainment programmes implicit in it social and
e that the people of a country would receive the best of every thing that could be education, housing, health services or the other various basic necessities.
Economics has been called and is known as a Social Science one that actually focuses on the subject matter that is
It defines a good economist as one who sees secondary and general effects and a bad one as the one who only sees the primary effects. The fact that the public are not interested in listening to the long boring facts that happens to be the truth makes it
These tools enable professional mainstream economists to address various economic issues facing the world. Mainstream economics is about modeling in a way that traditional or heterodox economics is not. It originated from the neoclassical synthesis of the neoclassical
4 Pages(1000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Basic Economics for FREE!