Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

MEANING OF BUSINESS ECONOMICS

Managerial economics is a science that deals with application of the various economic theories, concepts, principles, and the techniques to the business management in order to solve the business and management problems. It deals with practical application of the economic methodology and theory to the decision making problems faced by the public, private and the nonprofit making organizations. According to the Lord Robins, "Economics is the science which studies the human behavior as a relationship between the ends and the scarce means which have the alternative uses". According to the Spencer And Siegel man "Business Economics is integration of the economic theory with the business practice for the purpose of facilitating the decision making and forward planning by the management".

IMPORTANCE OF BUSINESS ECONOMICS

The Business economics is an particularly important matter. And should be of the high concern for people in both the large and small firms. The discipline allows you to better understand the markets and the potentially theorize a manipulation formula to better income in said firm. While it can increase the profits in firm it should not be distinguished as only the method of production. As there are many different subjects which do need to be focused on as well as the business economics. The Business Economics would allow the individuals to spot the economic bubbles as well and make needed changes in their own firm. For example housing market crash of 2008 was cause of an economic bubble which was not due to any one individual or the corporation, but was consequences of what sometimes happens in market. The same type of even happened with Dutch tulips centuries ago. This believe it or not traded for what would be millions of dollars today. Although, it is hard to clutch that an individual would pay for such a thing. Eventually, people trapped on and the tulips as well as the rich individuals and the people saw their incomes drop. If a person were to spot this in their investment and know this factor in the business economics they could divide themselves from bubble and the failure. Maybe not entirely as market could somehow reflect on them, but not enough to lose all the income, and become extremely bust.

WHY IS ECONOMICS SO IMPORTANT TO A BUSINESS?

To determine whether they are making a profit or loss. By determining the price elasticity of the demand they can make the optimum choices on whether to increase or decrease price. It also helps to use available production resources in an efficient and the most limited way.

CHARACTERISTICS OF BUSINESS ECONOMICS

1. Micro Economic Nature: Business Economics is the micro economic in its nature because it deals with the matters of a particular business firm only.

2. Use of Economic Theories: The Business Economics uses all the economic theories relating to profits, the distribution of income etc.

3. Realistic One: The Business Economics is a practical science. It studies all the matters concerning the business organization by considering real conditions existing in business field.

4. Normative Science: The Business Economics is a normative science. It studies matters concerning the aims and the objectives of a business firm. It determines methods to be adopted for achieving the objectives. It also makes enquiry into good and bad in the decision making. Thus it is a normative science.

5. Macro-Economic Uses: Even though the Business Economics has nature of the Micro-Economics, it also uses the Macro-Economic approaches recurrently. The Certain matters in the Macro-Economic like Business Cycles, Public Finance, National Income, the Foreign trade etc. are important for the Business Economics. So, the Business Economics uses macro-economic phenomenon for taking the business decisions.

6. Economics is a science or an art: It is considered as science if it is a systemized body of the knowledge which studies relationship between the cause and effect. Art is nothing but the practice of knowledge. Where as science teaches us to know and the art teaches us to do. It is the science in which the methodology and art in its application.

NATURE AND SCOPE OF BUSINESS ECONOMICS

The scope of the Business Economics consists of the following:

1. Demand Forecasting: The Demand forecasting is an important topic studied in the Business Economics. Every business firm continues and initiates its production process on basis of anticipation of more demand for its goods in future. It makes the research and conducts the market survey with a view to know tastes and fashions of consumers. It pools up resources and starts the production for meeting future demand. The Business Economics analyses demand behavior and forecasts quantity demanded by the consumers.

2. Cost Analysis: The Business Economics deals with analysis of the different costs incurred by business firms. Every firm desires to minimize its costs and enlarge its output by securing the several economies of the scale. But it does not know in advance about exact costs involved in the production process. Business Economics deals with cost estimates and acquaints entrepreneurs with t cost analysis of their firm.

3. Profit Analysis: Every business firm aims to secure the maximum profits. But at the same time it faces the uncertainty and risk in getting the profits. It has to build innovations in the production and the marketing of its goods. Business Economics deals with matters relating to the profit analysis like profit techniques, break-even analysis and policies.

4. Capital Management: The Capital management is another topic dealt in the Business Economics. It denotes the planning and the control of capital expenditure in the business organization. It studies matters like rate of return, cost of capital, selection of best project etc.

FIND THE PROFICIENT SUPPORT IN BUSINESS ECONOMICS AT THE WORLD'S MOST-TRUSTED PLATFORM

Mywordsolution offers you exactly you need in your Business Economics courses if you think that you cannot cope with all the complexities of Business Economics. Our team of dedicated Business Economics specialists, who have been worked in the Business Economics field for a long time, can offer UK, US, Australian, Canadian and word wide students their help in tackling what their Business Economics homework and assignment has to offer them. You just need to specify what kind Business Economics assignment help you want and what your deadlines are. Once you are done with submission of your Business Economics requirement, our specialists or experts will get back on the job, while at the same time promising things like:

  • Research relevant to your area  
  • The best prices   
  • Time on Delivery 
  • Plagiarism free Answers
  • 24x7 Supports
  • End Customer Satisfaction

In addition, the Mywordsolution.com facilitates you to search and find the solution for Business Economics questions, or Business Economics textbooks problems. You can search the questions in Business Economics solution library and download the answers in just little pay of the service.

Economics,Business Economics


Recent Business Economics Questions

A random sample of 87 eighth grade students scores on a

A random sample of 87 eighth grade? students' scores on a national mathematics assessment test has a mean score of 278. This test result prompts a state school administrator to declare that the mean score for the? state' ...

Question 1co6 from a random sample of 68 businesses it is

Question 1 (CO6) From a random sample of 68 businesses, it is found that the mean time that employees spend on personal issues each week is 4.9 hours with a standard deviation of 0.35 hours. What is the 95% confidence in ...

You are given the sample mean and the population standard

You are given the sample mean and the population standard deviation.  Use this information to construct the 90% and 95% confidence intervals for the population mean.  A random sample of 44 gas grills has a mean price of ...

You are given the sample mean and the population standard

You are given the sample mean and the population standard deviation.  Use this information to construct the 90% and 95% confidence intervals for the population mean.  A random sample of 44 gas grills has a mean price of ...

A production system has two spares of a critical component

A production system has two spares of a critical component that have average uptime 1/lamba = 1 month. Find the probability that the 3 components (the operating one and the two spares) will last more than 6 months. Assum ...

Consider a machine with exponential reliability model

Consider a machine with exponential reliability model. Assume that the breakdown rate is 1 and the repair rate is 2. Calculate the probability that the machine is up for more than 10 units of time. Calculate the probabil ...

Question onethe following is the number of first year

QUESTION ONE The following is the number of first year students who selected the three mathematics units for trimester one; Unit Number of students Calculus only 20 Calculus but not Statistics 22 Calculus and Real analys ...

Can someone help me determine how 1107 was obtainedin order

Can someone help me determine how 11.07 was obtained? In order to determine the Chi-Square Critical for the Chi-Square. You need to find out the Degrees of Freedom (DF)  DF = (Number of Rows - 1 * Number of Columns - 1) ...

Determine the minimum sample size required when you want to

Determine the minimum sample size required when you want to be 98% confident that the sample mean is within two units of the population mean. Assume a standard deviation of 4.82 in a normally distributed population.

From a random sample of 41 teens it is found that on

From a random sample of 41 teens, it is found that on average they spend 31.8 hours each week online with a standard deviation of 3.65 hours. What is the 90% confidence interval for the amount of time they spend online e ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As