...that apply micro economics tools like demand and cost, monopoly and competition, the allocation of resources, and economic tradeoffs to help managers in taking better decisions. Managerial economics is the science of directing scarce resources to manage effectively. These may be decisions with regard to customers, suppliers, competitors or the internal working of the organization. It does not matter whether the setting is a business, non profit organization or a home. It is the application of micro economics to the managerial issues (Wikipedia, 2010) Written Paper on — Demand Analysis and Optimal Pricing The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time. Demand is the desire to own anything and the ability to pay for it. In short, the demand function shows, in equation form, the relationship between the quantity sold of a goods or service and one or more variables (Blogspot, 2010). Q = f (P, P0, Y) The demand function does not indicate the exact quantitative relationship between Q and P, P0, and Y. Q = quantity demanded P = price of the product P0 = price of the other product Y = income of the consumer The demand equation can be used to test the changes in any of the explanatory variables. The demand curve is a special sub case of the demand function in which ceteris paribus applies to all independent variables except the price of the product in question. The demand curve expresses the relationship between...
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...Kasetsart J. (Soc. Sci) 33 : 142 - 151 (2012) «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 33 : 142 - 151 (2555) Demand Analysis of Ethiopian Coffee in Japan Wolday Gebrehiwot1,* and Apichart Daloonpate2 ABSTRACT Ethiopia is the largest coffee producer in Africa. One of the major markets for Ethiopian coffee is Japan. This paper, therefore, analyzed the determinants of demand for Ethiopian coffee in the Japanese market. The Linear Approximate Almost Ideal Demand System (LA/AIDS) model was used to estimate a system of expenditure share equations for Ethiopian coffee and its competitors. Quarterly time series data from 1988 to 2009 were obtained for the analysis. Empirical results indicated that most of the slope coefficients were statistically significant and in accordance with microeconomic theory. The demand for Ethiopian coffee was determined by its price, price of substitutes, the contamination dummy variable, and total expenditure in the Japanese market. Ethiopian coffee demand was found to be elastic and this has an implication in pricing policy. Keywords: Linear Approximate Almost Ideal Demand System (LA/AIDS), expenditure share, coffee, Ethiopia, Japan ∫∑§—¥¬àÕ ‡Õ∏‘‚Õ‡ªï¬‡ªìπª√–‡∑»ºŸº≈‘µ°“·ø√“¬„À≠à∑ ¥ â ’Ë ÿ „π∑«’ª·Õø√‘°“ Àπ÷Ëß„πµ≈“¥À≈—°¢Õß°“·ø®“° ‡Õ∏‘ ‚ Õ‡ªï ¬ §◊ Õ ª√–‡∑»≠’Ë ªÿÉ π ß“π«‘ ®— ¬ π’È ∑”°“√ «‘ ‡ §√“–Àå ªí ® ®— ¬ ∑’Ë ‡ ªì π µ— « °”Àπ¥Õÿ ª ß§å ° “·ø®“° ‡Õ∏‘‚Õ‡ªï¬„πµ≈“¥≠’˪ÿÉπ ‚¥¬„™â·∫∫®”≈ÕßÕÿª ß§å ‡™‘ ß ‡ â π „°≈â ¡∫Ÿ √ ≥å „ π°“√ª√–¡“≥√–∫∫ ¡°“√ à«π·∫àß§à“„™â®à“¬ ”À√—∫°“·ø®“°‡Õ∏‘‚Õ‡ªï¬·≈–...
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...Unit 1 Concepts of Managerial Economics Learning Outcome After going through this unit, you will be able to: • • • • Explain succinctly the meaning and definition of managerial economics Elucidate on the characteristics and scope of managerial economics Describe the techniques of managerial economics Explain the application of managerial economics in various aspects of decision making • Explicate the application of managerial economics in marginal analysis and optimisation Time Required to Complete the unit 1. 2. 1st Reading: It will need 3 Hrs for reading a unit 2nd Reading with understanding: It will need 4 Hrs for reading and understanding a unit 3. 4. 5. Self Assessment: It will need 3 Hrs for reading and understanding a unit Assignment: It will need 2 Hrs for completing an assignment Revision and Further Reading: It is a continuous process Content Map 1.1 1.2 Introduction Concept of Managerial Economics 1.2.1 Meaning of Managerial Economics 1.2.2 Definitions of Managerial Economics Managerial Economics 1 1.2.3 Characteristics of Managerial Economics 1.2.4 Scope of Managerial Economics 1.2.5 Why Managers Need to Know Economics? 1.3 1.4 Techniques of Managerial Economics Managerial Economics - Its application in Marginal Analysis and Optimisation 1.4.1 1.4.2 1.5 1.6 1.7 Application of Managerial Economics Tools of Decision Science and Managerial Economics Summary Self Assessment Test Further Reading 2 Managerial Economics 1.1 Introduction ...
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...in place due to the following developments in the global business environment: (a) Growing complexity of business decision-making processes. (b) Increasing need for the use of economic logic, concept, theories, and tools of economic analysis in the process of decision-making. (c) Rapid increases in the demand for professionally trained managerial manpower. These developments have made it necessary that every manager aspiring for good leadership and achievement of organizational objectives be equipped with relevant economic principles and applications. Unfortunately, a gap has been observed in this respect among today’s managers. It is therefore the aim of this course to bridge such gap. THE COURSE OBJECTIVES On completion of the requirements of this course, students and managers alike will be expected to: 1. Understand the relative importance of Managerial Economics; 2. Know how the application of the principles of managerial economics can aid in the achievement of business objectives; 3. Understand the modern managerial decision rules and optimization techniques; 4. Be equipped with tools necessary in the analysis of consumer behaviours, as well as in forecasting product demand; 5. Be equipped with the tools for analyzing production and costs; 6. Understand and be able to apply latest pricing strategies; THE COURSE STRUCTURE This course will be presented in modules, each of which is designed to achieve specific managerial objectives. In a nutshell the course contents are as follows: ...
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...Tool 3. Demand Analysis Economic Analysis of Tobacco Demand Nick Wilkins, Ayda Yurekli, and Teh-wei Hu DRAFT USERS : PLEASE PROVIDE FEEDBACK AND COMMENTS TO Joy de Beyer ( jdebeyer@worldbank.org) and Ayda Yurekli (ayurekli@worldbank.org) World Bank, MSN G7-702 1818 H Street NW Washington DC, 20433 USA Fax : (202) 522-3234 Contents I. Introduction 1 Purpose of this Tool 1 Who Should Use this Tool 2 How to Use this Tool 2 II. Define the Objectives of the Analysis 4 The Reason for Analysis of Demand 4 The Economic Case for Demand Intervention 4 Analysis of Demand for the Policy Maker 5 Design an Analysis of Demand Study 6 Components of a Study 6 The Nature of Econometric Analysis 7 Resources Required 7 Summary 8 References and Additional Information 8 III. Conduct Background Research 9 IV. Build the Data Set 11 Choose the Variables 11 Data Availability 11 Data Types 12 Prepare the Data 13 Data Cleaning and Preliminary Examination 14 Preparing the Data Variables 14 References and Additional...
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...products at inexpensive prices. The free market is characterized with intense competition that results in price reduction. In the computer industry, manufacturers are facing the challenge of technology advancements. However, the technological advancements do not allow producers to increase the price of their product because the technology becomes obsolete quickly. Product price is an important element of purchase decision as well as of marketing mix. In developing countries where prices of products form a large role in influencing the consumers, price is prevailing among other elements of marketing mix which are product, promotions and distribution. Before setting the prices of product, there are various factors that must be considered by marketers, the most important among them is enviornmental factors which includes competition. From the viewpoint of competition, the firms must consider the impact of their pricing strategies on the prices of competitiors or they must set prices keeping in mind the strategies of competitors. There are different pricing strategies which includes skimming pricing and market penetration prices. In skimming strategy, firm set the higher prices of their product and target to those consumers who are price sensitive. In penetration strategy, firms choose the lower prices for their product to penetrate in to the market and target to those consumers who are price sensitive. The normal price at which the product is offered is list price however...
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...MANAGERIAL ECONOMICS Study material COMPLEMENTARY COURSE For I SEMESTER B.COM/BBA. (2011 Admission) UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION CALICUT UNIVERSITY P.O. 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....
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...MANAGERIAL ECONOMICS Study material COMPLEMENTARY COURSE For I SEMESTER B.COM/BBA. (2011 Admission) UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION CALICUT UNIVERSITY P.O. 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....
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...Few studies have estimated gasoline demand in Canada. Most of these studies have either failed to recognise ali the ways in which consumers can react to gasoline priče changes ог have implemented рге-1973 data which did not provide good estimates of priče elasticities (Dewees et al, 1975; Dahl ,1978; Shalaby and Waghmare, 1980). Some models attempt to estimate the components of gasoline demand using aggre-gated data (Gallini 1983; Dahl 1982). The problem with these models is that they do not identify the relationship between the household decisions on vehicle holdings and on usage. These two decisions are likely to be dependent; the use of a vehicle depends on its type and the type of vehicle chosen depends on its expected use. Since these decisions are made within the household, household data should be used for estimating the various components of gasoline demand. This paper provides an estimate of household gasoline demand in Canada by applying a detailed model to pooled time-series (1969-1988) and cross-sectional provincial data. The model recognises three major behavioural changes that households can make in response to gasoline priče changes: drive fewer miles, purchase fewer cars, and buy more fuel-efficient vehicles. In the model, fuel есопоту is treated in considerable detail. The two components of the fuel есопоту of new cars sold—the technical fuel efficiency of various classes of cars and the distribution of new car sales according to their interior volume...
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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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...and Importance of Profits • Econ Profit= Total Rev- Total Op. Cost (Explicit & Implicit) • Explicit= Cost to Run Business • Implicit= Opportunity Cost • The 5 Forces Framework: Organizes Complex Issues into 5 1) Entry: Ease of Entering a market 2) Power of Input Suppliers 3) Power Of Buyers 4) Industry Rivalry 5) Substitutes and Complements 3) Understand Incentives • Paying an “Income” is not an Incentive • Bonuses are effective 4) Understand Markets • Three sources of Rivalry 1) Consumer-Producer Rivalry: • Consumer wants low prices while producer wants high prices. 2) Consumer-Consumer Rivalry: • Those who can pay the most for goods can only purchase 3) Producer-Producer Rivalry: • Firms with best quality and lower prices earn customer 5) Recognize the Time Value Of Money • Present value Analysis: The amount that would have to be invested today at prevailing Interest rate to generate given future Value. • Present Value Formula: PV= FV/(1+i)^n • Present Value Stream: (FV_t)/(1+i)^t • Net Present Value: Future Value – Cost • Perpetuity: (CF/i) 6) Use Marginal Analysis • Most Important Managerial Tool • N(Q)= B(Q) – C(Q) • Marginal Value Curves are the Slopes of the Total Value Curves Chapter 2 • Demand: As price goes up demand goes down; Vice-Versa • Changes in Quantity Demand: When price is the lead to a change in Quantity 5 Factors that Effect Demand A) Income: Effect how much consumers will buy at any price. • Normal...
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... Copyright © 2007, Bharathiar University All Rights Reserved Produced and Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for SCHOOL OF DISTANCE EDUCATION Bharathiar University Coimbatore-641046 CONTENTS Page No. UNIT-I Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5 Lesson 6 Lesson 7 Managerial Economics: Definition, Nature, Scope Fundamental Concepts of Managerial Economics Demand Analysis Elasticity of Demand UNIT-II Supply Analysis Production Function Theory of Cost...
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...Semester 2016 ______________________________________________________________ TUTORIAL 1 (WEEK 2): INTRODUCTION - THE NATURE AND METHOD OF ECONOMICS. THE ECONOMIZING PROBLEM (CHAPTER 1&2) CLASS ACTIVITIES: • Recap Lecture 1 • Tutorial exercises LEARNING OUTCOMES: Understand the meaning and significance of economics. Distinguish between microeconomics and macroeconomics. Explain various types of economic choices and to appreciate the concept of opportunity cost. Understand the marginal concepts and how they relate to rational choices. Construct, interpret a production possibility curve and understand its significance within the micro and macro perspectives. Describe economic efficiency. Understand the importance of ceteris paribus assumption. Distinguish between positive and normative statements. TUTORIAL EXERCISES. Question 1 In a paper written by Bentley College economists Patricia M. Flynn and Michael A. Quinn, the authors state: We find evidence that Economics is a good choice of major for those aspiring to become a CEO. When adjusting for size of the pool of graduates, those with undergraduate degrees in Economics are shown to have had a greater likelihood of becoming an S&P 500 CEO than any other major. A list of famous economics majors published by Marietta College includes business leaders Warren Buffet, Donald Trump and Diane von Furstenberg. Why might studying economics be particularly good preparation for being the top...
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...BACHELOR OF COMMERCE (B.COM.,) PAPER – 2.1 MANAGERIAL ECONOMICS UNIT – I CHAPTER - I SECTION - I Definition of Managerial Economics Managerial economics refers to those aspects of economics and its tools of analysis most relevant to the firm’s decision-making process. According to MeNair and Meriam, managerial economies consists of the use of economic models of thought to analyze business situations. Some writers consider managerial economics as the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning by management. The underlying idea of all these definitions is that managerial economics means economics applied in decision-making. So we may consider managerial economics as a special branch of economics bridging the gap between abstract theory and managerial practice. It may be pointed out here that effective decision-making at the firms’ level calls for a careful analysis of a choice between alternative courses of action. Economic theory offers a variety of concepts and analytical tools which can be of considerable assistance to the manager in his decision-making process. In fact actual problem-solving may require many skills and tools which are not available in the traditional economist’s. For example, knowledge of accounting and of statistical concepts and methods, which are not taught in economics, can help the analyses to apply more effectively the economic...
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...Samarendu Mohanty and E. Wesley F. Peterson(1999) 15 M. Uzunoz and Y. Akcay (2009) 16 L. J. S. Baiyegunhi and A. M Sikhosana (2012) 18 Methodology and results 18 Explanation of coefficients: 27 Elasticity Analysis : 30 Conclusion 32 References 33 Appendices 35 Introduction Food habits vary in finction of countries and regions. In Morocco, the wheat production have reached 3400 million metric tons in 2012 ("Index mundi," ), which makes Morocco wheat production ranked in the 24th place, excluding EU. All over the world, people consumption of wheat has increased in the majority of countries. Wheat is more and more used in every meal. Due to its importance in the Moroccan alimentation, we decided to to conduct a study related to the imported quantity of common wheat. The objective of this study is to determine the factors influencing the quantity demanded of common wheat in Morocco. In this project, we will make use of statistical tools like regression analysis. Our analysis will be through time for the period 1961-2010. Before to start this study, we expect to find a negative relationship between the quantity demanded and the price of wheat and a positive relationship between the dependent variables and the price of substitute, the GDP per capita and the...
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