Assignments I salve the_| fullowing (Tian _mavkt Each) ee] ry Tllustrate__Concept of _ Economy te @ The onomic_Sgte is Composed of penple, Firms lorgan;- ——_—Sations_¢ government. Ttadhnetse the problems Such af — location ef ti ted velourted, i namic System _is_an organised _wray_wheve_peaple ,.a_state 0a nation_allocerte available yelourcel_¢ _distuiblrte_gaodt_ —|_€ sesvicel tn_saciety , the national Community ae Tis Social Science_wahich deals colth production » = stab | Typet are :- a a ee eae eed Coit it Socialist ) Seana 2 i fh i ic 4: OD Hoynel, Mate _& Paul - en ee ee snaking Tt_i5_gpecial_branch_of ecanomict _byidging Covercame) the |_gap between abstract they managenal practice. O Solintoe | — lata ont Hay eo ons 1_application af _eConomic_theory the steals of analysis —1—of_deevtion_science_to_exeamine haw ad organization can achieve its. oblectivel _mal\t_ effectively ____ O Magid, Manager Economics lf, _@ncerned_taith_the application of economic _Concepts_<@_econamic_naly 5/5 — tothe problems of _ formulating rational_maneyeria/ _ decisions. @ scanned with OKEN Scanneromics. @ — dsclose the meaning af Macraecon y nomics ig the Slady of the eonamy A a “ ree? . single unit but the Combinatiry ofall, firms , hawschalds ination Ct. Ottis the Study af a national economy Od of eohole_ Tt is the Steel the aggreger¢ -conamy “4uch_ abt —_—_—— = National Income, = Unemployment _,—Toflartion. = Nartional_ourtput_,~ Fconamic. growth ____ ___= Fiscal 6 _Monetasy Policy o. Explain the Concept. (et Bl- OA five in economicl_, refers toa Commercial or ~—huginels_ institution aiming at the attainment _of. TL economic _obieetivel._____ {| OA ficm_i5 a Commercial enterpnse,a_Company. ft huys € salls_ products or sesvices to. "__Consumner_twith “the_aim_#6 of making a profit OA fin _may feof _varnmud types _Such_af sole __ __|__ proprietorship fixm, Partnership firm, Public Limcted —CompanioA, Private limited Campaniof 4 © | State_she_meaning_of icro@anomic. @:-|_ O Micro _mean4_sinal!. Microeconomics is the branch “of _etonomicl_hout_deals_eaith the individual units. Ms compagnie ncrCngumer, ee | @ These individua units may be_eithor_a person |0v a fit ov group_of persons or yn. Thu, —icro= economic _givel_microscopi ¢ View of ecana my. 1 O2 i the Study of individve!_ consumers €. prodtwers— —|,-in_Specrfic_markets. The_micto econamict_15 the — |, Study of an_eonamic bohaviart af. “culat | individual firm of houtehold. afo_ particular @ scanned with OKEN Scanner___ Mttemptthe_follaaing CFive_mams_bach ) > ) | summarize the Managerial Econamich <€ decision~ making. a : _O wnnagerial al Feanamica = Managerial Fronamice isa Study of eonamic__. ______theanieh.tool5_, techniques & methodology ww hich ave __ generally applied to Seek Golutiont_to_the_pyactical __ ___ problems of _hufinels. Ft_i5 an_applied micro econamict Managerial _Eeanamich is eanamicS applied in __ decisionmaking. Tt_is_a: special branch of e¢onamich | _ bridging the_gap_hetween abstract theary_£ managrial. practice. ie Senate aaa beory managerial theory , concepts , tools _¢ prinapla, ieee | pricing, revenue .market stwefure ete. Study ing ___.__thele_principlel_twill help 4o_make rational decisiant __wit_also improve the analytical kil thet manager | ox_entreprenary mult have to get sucefS.. The main role of ecanomict_in_managem ent is. \___ enhancing ecisions making ability where limitations etists 7 . * charactenaticl —t “‘DTt_i4 Microeconamic_in Nature tu A1¢ 6 Pragmatic Ff inf sss __ “Tre is Positive ¢ Novmafive Are utilized some ‘theoviel of Macroevea —t 4) 215. Problem Solving in Nature po ! Demand. Analysis € Foreces Hg -_ Ct Analy $16 @ scanned with OKEN Scanner—+¥ ~ ¥} Production ‘Analysi-— ay a ~__4l Pricing pec/'sionm— —aA ~F Prof_Management ——— 4 J ea ange a “ppt “at. : A tnecemenrte psc - - __3 Principle “oa_perapoutive L_ _ 4A Discounting PP or i 5] Bout marginal gy “Fr pongo —_esin= MONS —— ______ Managenna enamide momnageo Tg a pesos Fo paints managerial! Bcanamich helps. managers fo. decide on thé planning & control of He. vik __Tr + Decision PraCels_ sett itie 2 a_i ‘ Het tit ndings ara a | S| Catheniig_Tnformacton 6} Evaluating __Alternativel Armplementing < Monitoring the Relults @ scanned with OKEN Scanner+: Oo Briefly — discus. the _Gcope_of Managerial _eanaynich. Me | there ave 6 _Gcapo! sf _tanagevia)_economict. —| O Demand _Analysig & forecasting = — F Serena very important for the prodietion function Ithe|ps_io analyzing the_Cocrrent _¢_ @epected demand _for_the_prsduet- Tt helps managers —__for_praduction scehedul2 & equirement_ofempltyee!. — © Production Analysis !- Conversion ct inputs into outputs is Known _at —— production function. AS vesourcet are Scare caith ——fhang__altemna hve uet,_ckeision_rnakers tel to make —— optimum _utilization_of fretor_of praduotion_such_af _ | tohawes land. Qpital, technategy . machinery. Factors a production should _he_Combined in Such a way that it | an organization mutt get maximum _aufpu? ____ @O cast Analysis: in ply i diye | cast of production A manager mould ty to tind the |. factor, _Couting — Vaviario ! in coft_ettimates ¢ chaxte | Ne belt Combination go that_a firm gets. maseimum iain ene | Pricing_Deciaions 6 ye | Price is the oyigin af the vevonue for Aim ¢ ae f inal fi 11 on th |_| offeative pricing pal icy. ME Covers prie_dererminaia | t in Varinld_markets_€_pricing_methadt_< helpS in ___ preparing pricing policy. ___. sn ) Profit Rotuenedt!= ha he ye ce Economich _exeplaint that_profits ave the _ reward for_uncertainty bearing <€ risk -aking_cbility -of_an_entreprenewy..A_ Sucve satu) buginels mangger— 0X __an__endre prenewr_i5 one «sha con form + @ scanned with OKEN Scannera! _ more 0+ ‘pet5_Corvect et tinaates A coho — _ & vevenuel at. dffeventevelS of netpte ———— © @pital “management = 4 ~-hojpsio—copita|_budlgeting—<— al — Conf-l._of Copal empéndltmebecaade—t——~ __invalvet_ ot . main topic. deals under this ave —oatt_of Capital, — | te etn heist selectin 6 P il | je ere ve ite wa | Maceo economics is the iaut $tudy_of entive e¢onorne — This. the Study of econamich at System ‘an individual. 9roup-ox Companyl| Tt _iS the 4 a Level - 6. Jovame ofan idividspational_e¢anomy cl ahdle._ of. National Incane ual. “ogin Mikros Mako Tt deals| Todividual produce» fi'tm Aggtegatel_like ncrtona) — “with howdehard ,_indiuttay [Link] 2 .nartional autpit pnicel_, ote. puace_level_, et jot facut |Individual_unit _____—écanamic_aggr¢gae,__ yigton | Microscopi¢_—_—__. Telescopic. view worms _eye view [bird eye view ee eee ee i @ scanned with OKEN ScannerPoints shady _ | micagetanye aT “Soge limited. Broad ——______ | Te cover varia _igsuel__.Tt_covet> vane. sues | like demand, supply pra [Link]é,— pris «fata pcg eft: ae Populity | Atfed Marshal a Significance BQ A Trdividual evel | Nationa! level @ || discus the objectives of_firm. 1 sales _Moxinization @ market shave maximization 3 1@ cath of fm_svatimzation 1@ dow iia Minimization of accidents, laf 5 -, danayeh damagar @ Penetration ito maee Acquixing _broader__mavnet ® Revenue maseimization . | paokit hes et _ineweating_ revenue 1 setioy Cait. Profit generation _ensuret__the financial || 98 Sustainability of the busines providdd . @ scanned with OKEN Scanner@ scanned with OKEN Scanner® marketshare _mancinizotion’ = Many Coropanies...Seek 10 ‘ncreale their — marketshare, which can be done_ by. nding Customers, _atutperfoxrming_.Compet ta or diverdify ing — _ theit_prroduet warge. ) Revenue _marimizahios= {Rien often_foend_.on incrading their saleh ——|_ market share), aimi ity foc_extian Consistent revenue __ ytaath__Aprraigh —eepanding thei customer bale oy _ introduoing néu) _-produots. Satisfying _sharehaldert,. <2 takes lderB.!- —__ traded firm, mare/mizing Fox publicly sharehalder dealt through dividend payments , stack iC cypneciting fs ateategic deiston mail sa Key obieotive » 2.91 Gove he Tabuline” quettiaul Casi. deal Al 0 Fai ga lige Mace Phar all 25 thetny. 18 Setlist Endininiae- ol oe || williamson , itis _an_ezetengion_ of tradltional_prsfit || maximization. models of fixmbr 2 Tt eneplavol shaw _nnonagers , cather than jute owners o¥ Shareholders » have significant contrat ___ over. decision- making in large fmf. Here's haw: the. Theory wail: | sal lng ex icpaertiogs here 'g often | Separation between he. anership (aharehatders) <__Control (managers). Managers have Considerable discretion ave. the firm's decisiatt due do_the diffuse nature of | ownership. @ scanned with OKEN Scanner— @managerial_obiec J “_willansan ~sipelts at nana 4 a; _— pursue__theiy—cdn_go: uld_be different __ F xo1n__prxsfit__madeim ization —— 5 od ____Thel@__qoal5_include.’= wt hed ___ Managers_denve rhlity. (Gatssfewtion) —— ___ ndt_jutt_From profits hut from other aspects —— ike__dalaviel, slob secunity perks, staft_size_st—— iscnotic ing. | Gharehalder wealth. = I 6] Discretionary Inveltments:- : | Managers may Wie _execels elourcS Ton pxalects that enhanw their cfilrty but + [ provide litte benefit _1o_shoveha dev © constraints ‘on _Monayenial_Discxetion :- | while managers —enJay Same treedan | the L¢ market force! impasse _Conatraint : if the tim Underperform _S/gn/hicon ty, __ | shareholders caon_veplace the management Thu! m alone tery | pewonal _obieetivs saith _the_naed_-to engine —_ the _-frrw's tinapdal fealth 10 come _eaetent: | Profit _safisteicing— ___ _ Ingtead ot _prohit _ mazeimization ma mot aim for Proht satisticiny , where they seek @ scanned with OKEN Scanner_—_te_achiewe a _level_of _profitthad_Satifiel_ohaveha ln ——endigh_fo_avaid losing ther position, while algo yp hang Lather .peYong! goglé, ep gy 6 sept fc fie f= | —__hlillomgots_thearySuqgel? thal _ficmt_may nt slays ot in-the_beude_interelt of _sharehalders.— ea eC ancimizing_prohits. Arm!_may exit ——-behaviovs driven _fy tho managerial “cinle's prox ——$ueh_al_ater—invettment_in unnecessary protects — Steet tt gmt. __ji ohiectivad ith es ae Dei Fatih A the fe. ae The —neo- Clatsical theory ofan organization the. main objective of an_entxeprenewr or _manager_i5 _psohit_mavé mization -_ An_oxganization maximized i: : leanshie c= MR Cie. maximum colt 14 _egual 4o__Mareiraum Revenue | & the MC curve cuts the MR curve from beled & maximum _prohts xefer_ta__ | puve__prohits which_axe _a_surplud__alove_the || average _Gaftt__of _ produetion. L cm eenigae the aa left_coith the businetsmen. || after he hal_made payments toatl factors of f production. Such _al_ vent, wagal_interelt ete. Jn Vother wordt, if 15 a veaidual income over @ scanned with OKEN Scannerabove, =i nomial —prshas. pichis. hy ya me _ “a, argon Thatta py eewpresed af )— ————Mareimized__ pr where, ht pCa) pede ye tt : He evens ae | i cz at | i €Q = He units of output Sard. \ Tall the ag dala fit ~——| maximization —candition explained above are | Hay plica be both_4o_ fixie in a perfeety | Assumabiat O The objective of on -ovganisation_is tn maximize _\15_profits where. puohits are the = __|| difference bethocen-— evens Catt = fn rgantet © theve 15 no_change_in_aute, “lent - || habits of _ongume. __t ails 7 “Ap ie isa aon ae Fela | -prodiefion. oe “ 81 firm_producel_a_singlo€ perfectly fe ) divisible Commodity @ scanned with OKEN ScannerBea be ei hy aad Be numberof outpié- cobich can be Said at each prilé ® Entry ot fixmt in the_shor?_sun_i9_not_pxssrble — @_A fim maxinizol it5_qofits_oter Same_tinte—— hovizon @ Profits aye maximized bott_in the shore atin — €& the long sw. @ scanned with OKEN Scanner