...action among various. Question 2. : - Contraction and extension of demand? Answer:-A variation in demand implies “extension” or “contraction” of demand. When with a fall in price more of a commodity is bought there is an extension of demand. Similarly, when a lesser quantity is demanded with a rise in price there is a contraction of demand. In short demand extends when the price falls and it contracts when the price rises. Both of the terms are technically used in stating the law of demand. Question 3. :-Opportunity cost / alternative cost? Answer:-It is measure in terms of the forgone benefits from the next best alternatives use of a given resources in simple words scarifies or loss of alternative use of a given resource is turn as an opportunity cost. The alternative or opportunity cost of one unit of product A is the amount of product B that has been sacrificed by allocating the resources to produce A rather than B. Question 4. :-Low of Demand? Answer:-According to Ceteris Paribus, “The higher the price of the commodity the smaller is the quantity demanded and lover the price larger the quantity demanded other things remain constant.” In other words the demand for a commodity extends (i.e., the demand rises) as the price falls and contracts (i.e., demands falls) as the price rises. Or briefly stated, the low of demand stresses that, other thing remaining unchanged, demand varies inversely with the price. Question 5. :-Social...
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...Identify causes for shifts in supply and demand for the chosen product. There are many different factors that could cause a shift in the supply and demand for soap and at the same time have an influence on price, quantity, and market equilibrium. Changes in pricing for instance maybe related to increase labor and manufacturing cost to produce soap, as well as the economic status of the company. A consumer’s preference often causes shifts relating to convenience, product knowledge, product variety and skin type. Soap companies are educating consumers more by increasing awareness on product profiling, which allows consumers to use soaps that are more beneficial according to skin type. Changes in the growing population of baby-boomers have had an impact on the supply and demands in the soap industry. The soap industry has gained from this particular group of consumer because the increase demands for well-being. Scientific discoveries can also be a factor when more consumers are interested in how natural soap is in comparison to artificial ingredients. With today’s economy the way that it is, consumers may earn less and therefore their budget for certain brands or individualized preferences maybe compromised. Thus all of these factors along with many others can have an impact on the supply and demand of the soap industry. When considering the market equilibrium of the soap industry the firms must evaluate the cross between supply and demand, thus the market for soap is the equilibrium...
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...MALAPPURAM, KERALA, INDIA - 673 635 409 School of Distance Education UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION Study Material COMPLEMENTARY COURSE I SEMESTER B.COM/BBA Managerial Economics Prepared by: Module I, II, V(A) : Sri. M.V. Praveen, Asst. Professor, Dept. of Commerce, Govt. College Madappally. Module III, IV & V (B) : Sri. Vineesh A.K., Assistant Professor, Department of Commerce, Govt. College, Madappally. Dr.K.Venugopalan, Associate Professor, Department of Commerce, Govt. College, Madappally. © Reserved Edited & scrutinized by : Managerial Economics-I Sem.B.Com/BBA 2 School of Distance Education CONTENTS MODULE PARTICULARS PAGE NO. 5 12 33 42 1 II III IV INTRODUCTION DEMAND CONCEPTS PRODUCTION MARKET STRUCTURES AND PRICE OUTPUT DETERMINATION PRICING POLICY AND PRACTICES BUSINESS CYCLE V (A) V (B) 60 66 Managerial Economics-I Sem.B.Com/BBA 3 School of Distance Education Managerial Economics-I Sem.B.Com/BBA 4 School of Distance Education MODULE I INTRODUCTION Introduction The term “economics” has been derived from a Greek Word “Oikonomia” which means „household‟. Economics is a social science. It is called „social‟ because it studies mankind of society. It deals with aspects of human behavior. It is called science since it studies social problems from a scientific point of view. The development of economics as a growing science can be traced back in the writings of Greek philosophers...
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...MALAPPURAM, KERALA, INDIA - 673 635 409 School of Distance Education UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION Study Material COMPLEMENTARY COURSE I SEMESTER B.COM/BBA Managerial Economics Prepared by: Module I, II, V(A) : Sri. M.V. Praveen, Asst. Professor, Dept. of Commerce, Govt. College Madappally. Module III, IV & V (B) : Sri. Vineesh A.K., Assistant Professor, Department of Commerce, Govt. College, Madappally. Dr.K.Venugopalan, Associate Professor, Department of Commerce, Govt. College, Madappally. © Reserved Edited & scrutinized by : Managerial Economics-I Sem.B.Com/BBA 2 School of Distance Education CONTENTS MODULE PARTICULARS PAGE NO. 5 12 33 42 1 II III IV INTRODUCTION DEMAND CONCEPTS PRODUCTION MARKET STRUCTURES AND PRICE OUTPUT DETERMINATION PRICING POLICY AND PRACTICES BUSINESS CYCLE V (A) V (B) 60 66 Managerial Economics-I Sem.B.Com/BBA 3 School of Distance Education Managerial Economics-I Sem.B.Com/BBA 4 School of Distance Education MODULE I INTRODUCTION Introduction The term “economics” has been derived from a Greek Word “Oikonomia” which means „household‟. Economics is a social science. It is called „social‟ because it studies mankind of society. It deals with aspects of human behavior. It is called science since it studies social problems from a scientific point of view. The development of economics as a growing science can be traced back in the writings of Greek philosophers...
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...Crocs thanks to its core competencies: flexible supply chain model, well controlled the product cost, and the extremely comfortable product character. First and foremost, the design of distribution and supply plan contribute to Croc as a core competitive advantage. The advanced and flexible supply chain could reduce a lot of time and cost for the whole process of business. The electronics contract manufacturing system allows the company to adjust the volume of production in-season. The retail store could provide the database about the sales of each type of shoes, they could analysis the data to redesign the production structure according to the feedback from the customers. For example, they could enhance the manufacture of the best sale to replenish the shelves; If the shoes didn’t achieve a good sales number, they could reduce the amount to manufacture and advanced the inventory turnover. Second, the raw material of plastic shoes is less expensive, so the cost of the good could be controlled easily, which lead the marginal profit to be relatively higher than the competitors. The last core competitive advantage is the comfortable product trait appealing many customers to keep consuming the brand. Comfortable is a requirement for some specific professionals and the traveler when they making the purchase decision, those loyal customers help the brand build a word-of-mouth marketing advantage. That is the reason why the market demand from customers was increasing rapidly after the...
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...major affect on supply and demand. The simulation in this week’s assignment deals with the curves of supply and demand and how they are affected by the changing of situations that happens in the city of Atlantis with the two-bedroom apartments. Changes were supposed to be made depending on the findings and results made within the Atlantis community. The shifts in supply and demand will have an effect on the Goodlife decisions. This simulation has four emphasized key points they are price ceilings, supply and demand, shifts in supply and demand, and equilibrium. This paper will summarize briefly found concepts of each scenario; whereas, it will explain the supply and demand changes and how the changes affect decisions that relate the supply and demand concepts to the testing service department of Aflac’s Software Company. When Goodlife first started the business wanted to see what, he or she would have to charge for the monthly rental of an apartment to receive maximum revenue for the 2,000 available apartments. The results showed that an apartment monthly rent of $900 would have to be charged for the maximum revenue to reach $1.80 million dollars. Although this rate is better than the $1300 that was original asked; whereas, $2,000 apartments were in demand and rented leaving no surplus. This simulation shows that when a lower price is placed on a product or good, the demand will increase. Some of the factors that can affect the equilibrium of supply and demand are price changes...
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...Chapter 1 Applied Problem 1 1. At the beginning of the year, an audio engineer quit his job and gave up a salary of $175,000 per year in order to start his own business, Sound Devices, Inc. The new company builds, installs, and maintains custom audio equipment for businesses that require high-quality audio systems. A partial income statement for Sound Devices, Inc., is shown below: 2010 Revenue Revenue from sales of product and services $970,000 Operating costs and expenses Cost of products and services sold $355,000 Selling expenses $155,000 Administrative expenses $ 45,000 Total Operating costs and expenses $555,000 Income from operations $415,000 Interest expenses (bank loan) $ 45,000 Legal expenses to start business $ 28,000 Income Taxes $165,000 Net Income $177,000 To get started, the owner of Sound Devices spent $100,000 of his personal savings to pay for some of the capital equipment used in the business. In 2010, the owner of Sound Devices could have earned a 15 percent return by investing in stocks of the other new businesses with risk levels similar to the risk level at Sound Devices. A. What are the total explicit, total implicit, and total economic costs in 2010? Total explicit cost is $893,000 which is total sales – net income equal explicit cost expenses. Total implicit cost in 2010 is the salary he is giving up $175,000.00 Total Economic Cost for 2010 is $\893,000 plus...
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...diagnosed the issues and identified limitations of the current capacity, which hampers Harley’s ability to expand and meet demand. It is important to appropriately incorporate risk as it goes well beyond just capacity. For incorporate risk into the analysis and decision making we recognized that a series of tools would be required. The approach involved three analysis tools for considering various factors that are important for decision making: Demand Analysis: We needed to forecast for the demand, supply and margins, while distinguishing demand from output and sales. Scenarios and Capacity Analysis: Next step was to determine the factors for building the scenarios, assign probabilities, estimate the cash flow and then compute the NPV. We modeled capacity adjustments and continuous improvements, then included plans or options for changes and new products. Risk Analysis and addressing management’s success criteria: Our decision needed to account for the risk aversion of the company due to its learning from its history, and also encompass company’s long term strategy and success criteria’s laid out by management. In next few pages we lay out the points incorporating above tools and provide team’s recommendation which is based on Harley-Davidson’s long term strategy and values. We start with Strategy and Risk analysis. Strategy, Risk Analysis and Success Criteria. Harley-Davidson Motor Company is an...
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...Cost theory and estimationm’s cos: An individual firm cost of production has great influence on the total market supply of a particular commodity that is why it is important to understand the production cost concept. Different types of costs: Cost of production can be classified as Opportunity Cost Opportunity cost is a cost associated with a decision that includes both the explicit and implicit costs. The unique aspect of opportunity cost is that it also includes costs associated with making an alternate decision. The costs associated with an alternative are called implicit costs. The accounting cost of making a decision is called the explicit cost. While explicit, or accounting, costs are fairly easy to calculate, implicit costs are not as easy. Measuring the cost of the best foregone alternative can be not as easy as anticipated. By reading this Wiki right now, you are paying an implicit cost of your next best alternative. This can and often will be different for everyone. For you, it may be that the next best alternative instead of reading this is watching television. For someone else, it may be surfing the internet. IMPLICIT COST A cost that is represented by lost opportunity in the use of a company's own resources, excluding cash. These are intangible costs that are not easily accounted for. For example, the time and effort that an owner puts into the maintenance of thecompany|company rather than working on expansion. EXPLICIT COST A business expense that...
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...Ragupathi (10050) Sunil M (10051) Swathy Swaminathan (10053) Thirtha (10055) Gunjan Modi (10078) Sarita G. Krishnan (10103) GROUP B2 : NAPOLEON | TABLE OF CONTENTS 1. HISTORY 3 1.1 Power Generation and Transmission in Karnataka State 3 1.2 Re-structuring of KEB into KPTCL 4 2. VISION AND MISSION 5 2.1 Vision 5 2.2 Mission 5 3. ENVIRONMENT ANALYSIS 6 3.1 Political situation in Karnataka 6 3.2 Economic situation in Karnataka 6 3.3 Social situation in Karnataka 7 3.4 Technological innovations in power sector 7 4. INDUSTRY ANALYSIS 9 4.1 Current Scenario 9 4.2 Challenges and Risks 9 5. SWOT ANALYSIS of KPTCL 11 5.1 Strengths 11 5.2 Weaknesses: 11 5.3 Opportunities 12 5.4 Threats 12 6. KPTCL’s CURRENT SITUATION 13 6.1 Demand-Supply Status 13 6.2 Present Karnataka State Power Scenario 14 6.3 Financial Position of ESCOMS 15 6.4 Energy Sufficiency – Capacity Addition 15 7. DELIVERABLES FOR THE FULL REPORT 16 KARNATAKA POWER TRANSMISSION CORPORATION LIMITED (KPTCL) 1. HISTORY 1.1 Power Generation and Transmission in Karnataka State The erstwhile Mysore State had the enviable and glorious position of establishing the first major hydro-electric generating station at Shivasamudram as early as 1902 for commercial operation. The art at that time...
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...Republic of the Philippines LagunaStatePolytechnicUniversity Siniloan Host Campu, Siniloan, Laguna CollegeofAgriculture Bachelor of Science in agribusiness COURSE SYLLABUS IN social science 4 first semester, a.y. 2013-2014 I. COURSE CODE: SOC.SCI 4 II. COURSE TITLE: GENERAL ECONOMICS WITH TAXATION AND LAND REFORM III. Course Description: This course provides a comprehensive coverage of all major topics in economics. Attention is given to establish student understands of key economic principles with particular emphasis on the Philippine Economic system, its growth and development. The course covers the foundation of economics, demand and supply analysis, the concept of elasticity, the theory of production and the fundamental concept of micro and macroeconomics with the use of simple graphical and mathematical illustrations. Likewise, the course involves topics on taxation and agrarian reform with discussion on issues and problems related to its implementation. IV. CREDIT UNIT: 3HOURS V. TIME ALLOTMENT: 54 hours/ 3 hours per week VI. GENERAL OBJECTIVE: At the end of the course, the students are expected to know the fundamental principles of economics, and their application to everyday life. SOCIAL SCIENCE 4 – GEN. ECON WITH LAND REFORM AND TAXATION Time Allotment |TOPICS/ CONTENT |SPECIFIC OBJECTIVES |TEACHING STRATEGIES |VALUES INFUSED |INSTRUCTIONAL MATERIALS...
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...Project Feasibility Study Project Background and History To ensure the success of the feasibility study, it must be clearly understood how the project idea fits into the framework of the economic conditions and the general and industrial development of the country particularly if financial assistance is sought from a government agency such SSS, GSIS, or DBP. The project should be described in detail and the sponsors identified together with the reasons for their interest in the project. The following should be presented: A.) Project Background 1. Describe the project data. 2. List the major project parameters that serve as guiding principles during the preparation of the study : product and product mix, plant capacity and location, market or raw material orientation of project, implementation schedule and others 3. Outline the economic, industrial, financial, social and other related policies 4. Show different geographical levels, such as international, regional, national and local 5. Highlight the economic, sectoral and subsectoral project coverage B.) Project promoter and/or initiator 1. Name(s) and address(es) 2. Financial possibilities 3. Role within the project 4. Other relevant information C.) Project History 1. Historical development of the project (dates of essential events in project history) 2. Studies and investigations already performed (title, author, completion date, ordering party) 3. Conclusions arrived at, and decisions taken, from these former studies and investigations...
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...A "strategic extension campaign" (SEC) methodology developed by FAO has been introduced in Africa, the Near East, Asia and Latin America. This methodology emphasizes the importance of people's participation (i.e., intended beneficiaries such as fields extension workers and small farmers) in strategic planning, systematic management, and field implementation of agricultural extension and training programmes (see Fig. 2-4). Its extension strategies and messages are specifically developed and tailored based on the results of a participatory problem identification process on the causes or reasons of farmers' non-adoption, or inappropriate practices, of a given recommended agricultural technology or innovation. The SEC technology transfer and application approach is needs-based, demand-driven, and has a problem-solving orientation. The Strategic Extension Campaign (SEC) is not an alternative to the conventional extension programme or activity. SEC is, and should be, an integral part of the programmes of an agricultural extension service. The effectiveness and efficiency of such a service could be increased due to SEC's emphasis on its problem-solving orientation, participatory planning approach, intensive extension personnel training, multi-media materials development, and extension manage meet, monitoring and evaluation procedures. Its activities should be carried out by extension personnel and to support the Ministry of Agriculture's policies, strategies and priority programmes....
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...Applied Problems Chapter 1: Applied Problem 1 At the beginning of the year, an audio engineer quit his job and gave up a salary of $175,000 per year in order to start his own business, Sound Devices, Inc. The new company builds, installs, and maintains custom audio equipment for businesses that require high-quality audio systems. A partial income statement for Sound Devices, Inc, is shown below: 2010 Revenues Revenue from sales of product and services $970,000 Operating costs and expenses Cost of products and services sold 355,000 Selling expenses 155,000 Administrative expenses 45,000 Total operating cost and expenses $555,000 Income from operations $415,000 Interest expense (bank loan) 45,000 Legal expenses to start business 28,000 Income taxes 165,000 Net income $177,000 To get started, the owner of Sound Devices spent $100,000 of his personal savings to pay for some of the capital equipment used in the business. In 2010, the owner of Sound Devices could have earned a 15 percent return by investing in stocks of other new businesses with risk levels similar to the risk level at Sound Devices. a. What are the total explicit, total implicit, and total economic cost in 2010? b. What is accounting profit in 2010? c. What is economic profit in 2010? d. Given your answer in part c, evaluate the owner’s decision to leave his job to start Sound Devices. Answers a) Explicit costs are defined as monetary...
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...data provides. The line equation is as follows: y=mx+b. When the calculation is done from the line, the values for “m” and “b” (the slope and intercept) are calculated with the data that is used in the simple linear regression. An example of simple linear regression is as follows: car rental for 1 day is $100 M-Thur, weekend rates will vary depending on the demand of the rentals and the number of cars. The total cost for a car rental M-Wed = constant + variable portion = $300 + $25 (number of rentals on lot) Variables: The constant portion = $300 = total for car rental for 3 days The variable portion = $25 = direct cost of car rentals available Unknown variable = supply and demand 3. Describe multiple regression analysis and discuss potential uses for this model Multiple regressions are the extension of a simple linear regression. This regression is used when the need to predict the value of a variable is based on the value of more than one variable. The variable that is sought after is called the target variable. References 1. Barry Render, Michael E. Hanna, Trevor S. Hale, Quantitative Analysis for Management 12th Edition, 2. Jobson J. D, Applied Multivariate Data...
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