Contact Us
Sign In / Sign Up for FREE
Go to advanced search...
Nobody downloaded yet

Managerial Economics and Business Environment - Assignment Example

Comments (0) Cite this document
In the paper “Managerial Economics and Business Environment,” the author provides the study of integration between economics and practical issues, which is nothing but Managerial Economics. It influences the decision-making process of the managers…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92% of users find it useful
Managerial Economics and Business Environment
Read TextPreview

Extract of sample "Managerial Economics and Business Environment"

Download file to see previous pages Once the above said subject matter is clearly sorted out, the next emphasis would be on the concepts like the opportunity costing, incremental principle, marginal principle, discounting principle, the principle of time perspective, and calculation of economic profit as the guidelines to the scope of managerial economics. (Surender. V, 2008).
To start with, we consider a firm for which different processes have to be carried to achieve its objectives of profit maximization (assuming that all the organizations work with the view to maximize profits). If firms from different sectors are identified simultaneously, then the working of the economy as a whole could also be analyzed which in turn is useful in the decision-making process of every single firm.
Taking this into consideration, four of the FTSE top 100 firms viz. Vodafone plc., BATS., Glaxo Smithkline, and Royal Dutch Shell have been identified for an analysis of the practices they are engaging in, to maintain themselves growth-oriented even in such a recessionary scenario. Along with the concepts of managerial economics, a bird’s eye view about what these companies would be helpful in understanding the concepts better. (Anon, 2008 – 1).
Demand Analysis: Any firm will be able to operate only if its products are in demand in the eyes of the consumer. A firm that produces unwanted products cannot sustain for long in the market. Demand for a good is in itself a function of various factors like it’s price P(x), price of its competitor P(c), tastes of the consumers (T), income which the consumer is willing to dispose of (I), Money expended on advertisements (A) and several other factors like the goodwill. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(Managerial Economics and Business Environment Assignment, n.d.)
Managerial Economics and Business Environment Assignment.
(Managerial Economics and Business Environment Assignment)
Managerial Economics and Business Environment Assignment.
“Managerial Economics and Business Environment Assignment”.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Managerial Economics and Business Environment

Managerial economics

...? Managerial Economics Introduction In the paper two basic concepts of micro economics is represented with the illustration of easy diagrams and short mathematical exercises. The first one is the theory of demand and theory of supply along with market equilibrium and the other one is the production possibility frontier of two countries. In the demand and supply framework a detailed explanation of the demand and supply is given with the notion of market equilibrium and also how disturbances in the market self adjusts and return back to its initial equilibrium state. In the production possibility frontier paradigm, its construction is given for two countries and how the countries with comparative advantage can benefit from trade is exhibited...
5 Pages(1250 words)Essay

Managerial Economics

...? Managerial Economics Essay AFFILIATION: Managerial Economics Essay One of the best articles that have discussed the importance of International Trade in World Market has been published in New York Times magazine which has highlighted the importance of trade agreements in this globalization period (International Trade, 2012). The trade agreements have reduced prices of goods and services of America in foreign markets and also in the home country; tariffs and taxes on these products have been eliminated to a considerable extent. Overall benefits because of globalization are numerous but the major one is surging demand of products and services along with reduction in their prices. As a result of globalization and trade agreements, foreign...
4 Pages(1000 words)Essay

Managerial Economics

...?Managerial Economics The term oligopoly has its origin from the combination of two Greek words. They are ‘Oleg’s’ and ‘Pollen’. The former means ‘a few’ and the latter means ‘to sell’. Thus, the term ‘oligopoly’ in business means a situation when the number of companies selling a particular product or service in the market is very few. In other words, oligopoly can be termed as ‘competition among the few’. Admittedly, oligopoly has a large number of specific characteristics which encourage the companies to exhibit collusive behaviour (Fershtman & Pakes 2000). The first important characteristic of oligopoly is interdependence. It happens because when the number of firms is few, any change in the price or quality of the products by one...
4 Pages(1000 words)Essay

Managerial Economics

...Managerial Economics Introduction The drastic decline in the prices of the US housing investments was the reason that led to the financial crisis that affected the entire world. Housing is that asset which is endowed with services flow. An asset like housing can either provide for consumption or for letting out which would in turn supply with cash which can be used for buying other consumption good (Varian,2010 , p.203). Thus the housing would provide an implicit rental return which in turn could also generate money that could rent a house of the same value. There are several factors that contribute to the pricing of houses in a free market. The Basic Principle of demand and supply This basic principle of demand and supply would chiefly...
4 Pages(1000 words)Essay

Business and managerial economics

... along the frontier. g) Higher unemployment benefits discourage school-leavers from working. As some resources become unemployed, this will cause a decline in production represented by a movement to a point within the frontier. Section 2 (31 marks) Suppose a news article reports, 'Poor wine grape harvests in France have brought financial gain to Australian winemakers. Sales of Australian wines are booming and wine prices are the best ever.' Analyse the economics of the events reported by answering the following questions: a. How has the market for French wines been affected by poor wine grape harvests Explain with the aid of a diagram. In your diagram, indicate what is happening to the equilibrium price of French wines...
3 Pages(750 words)Math Problem

Business Environment and Economics

...BUSINESS ENVIRONMENT AND ECONOMICS Assignment Part A (250 words) (i) In a town centre there are two businesses, Hiphop and Gerries selling music CDs. If the price of CDs in both outlets is 10, the town's monthly sales are 2000. If the price is 11, sales are 1800. The wholesale price is 6. Charging the same price they share the market equally. However, if one charges 10, whilst the other charges 11, the lower priced outlet sells 1600 per month and higher priced outlet sells only 360. Construct a pay off matrix showing the options available to the two firms and the profits they will make in each case. Explain briefly with reference to the pay-off matrix whether the firms have a dominant strategy. Explain how a mutual pre-commitment to match...
12 Pages(3000 words)Research Paper

Business and Managerial Economics

...LSC London London School of Commerce MODULE Business and Managerial Economics SEMESTER: Semester leading BA SEMESTER : June 2010 – September 2010 SUBMITTED BY: My Name Section Topic page 1 Describe what happens to the rent and to the quantity of housing available if an earthquake suddenly and unexpectedly reduces the supply of housing. Trace the evolution of the rent and the quantity traded over time (in the long-run) 3 2a Explain why may a restaurant charge very high prices for wine and bottled water and yet quite reasonable prices for food? 3 2b Explain price elasticity of demand and discuss the main factors that affect it. 4 3a Draw a diagram illustrating the case of a perfectly competitive firm that is earning...
10 Pages(2500 words)Essay

Managerial Economics

(Heakal, n. d). As each company or country will have both advantages as well as risks regarding many aspects of its functioning, it is very important for the investors to have insight about those investment opportunities. As it will not be practically feasible for the investors to analyze and understand each and every aspect of the companies or countries and their advantages and risks, they will elicit the help of external agencies. Also, even if they do analysis on their own, they will consult or refer external agencies to give them some guidelines or ideas about the investment opportunities. This is where the role of credit rating companies or agencies comes into the picture. “Measuring the ability and willingness of an entity -...
9 Pages(2250 words)Research Paper

Managerial Economics

Annual reports by oil companies reveal that spending on the exploration and development activities enlarged by $18 billion (5% ) in 2013, whereas spending on the property acquisition continued to decrease by $17 billion. The total upstream spending was comparatively flat after the period of robust growth from 2000 to 2012. In the last three years, flat oil prices, as well as the rising costs, have added to the declining cash flow for these oil producing companies. The continued decrease in cash flow, especially in the face of the rising debt levels, could hinder future exploration and development. Nonetheless, lowered spending levels might be offset by production efficiency and the rising drilling as evidenced in a review of data...
8 Pages(2000 words)Term Paper

Managerial Economics

The firm would be worse off, if it produced in the short run because the total loss that the firm will incur in this case is 380 AED (120-500). It is prudent if the firm shuts down and saves 200 AED rather than losing 380 AED in the short run. At the point where the firm produces 30 units and sells each unit at 4 AED, MRC (marginal revenue cost) is less than AVC (average variable cost).
Assuming that Coke has already attained the monopoly status such that Coke is a monopolist, Coke actively engages itself in price discrimination because it has price setting power (Carbaugh). Given that there is a difference in price elasticity of demand for Coke in various regions, the company varies its price and extracts consumer surplus, wh...
9 Pages(2250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Managerial Economics and Business Environment for FREE!

Contact Us