Objectives and importance of managerial Economics
What are the objectives and importance (Uses) of managerial Economics?
Expert
The objectives of managerial economics are to:
i. To analyze the economic problems faced by the business. i. To integrate economic theory with business practice. ii. To apply economic concepts and principles to solve business problems. iii. To allocate the scares resources in the optimal manner. iv. To make all-round development of a firm. v. To minimize risk and uncertainty vi. To helps in demand and sales forecasting. vii. To help in profit maximization. viii. To help to achieve the other objectives of the firm like industry leadership, expansion and implementation of policies
Importance: To solve problems of decision making, data are to be gathered and analyzed in the light of business aims. Managerial economics helps in this area.
Explain the Exceptional Demand Curve.
Firing a worker who regularly goods off and calls in sick may not resolve the moral hazard problem of shirking when: (w) there is a high probability which the worker will sue the firm. (x) the local unemployment rate is high. (y) average worker productivity is low. (z
What is Constant Returns to scale?
When the marginal revenue product of the last worker hired through a large firm is fewer than its marginal resource cost, in that case the firm: (i) increases profits if this lies off a few workers. (ii) operates in a region of decrea
What are the advantages and disadvantages of trend projection method?
Explain Exceptional Demand Curve.
When, for a perfectly competitive firm that price exceeds the marginal cost of production then the firm must: w) raise its output. x) reduce its output. Y) keep output constant and enjoy the above normal profit. z) lower the price.
Illustrates the term long run production function?
Labor’s physical productivity based most directly on technology and the: (w) tastes and preferences of consumers. (x) transactions demand for money. (y) prices and availability of the other resources. (z) level of per capita income.
When a cartel member can persuade competitors to keep the cartel price but secretly give a discount price to certain customers, profits will rise: (w) for all members of the cartel. (x) since price cuts are only given to assigned customers. (y) as a result of an incre
18,76,764
1944052 Asked
3,689
Active Tutors
1451516
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!