This website uses cookies to ensure you have the best experience.

# Managerial Economics Essay

3067 words - 13 pages

MZUMBE UNIVERSITY

DAR ES SALAAM CAMPUS

PROGRAM : MBA - CORPORATE MANAGEMENT 2013/14
EVENING SESSION: (MBA II) – 16 HRS
SUBJECT : MANAGERIAL ECONOMICS (ECO 5011)
LECTURER : Dr. P. NGOWI
GROUP PARTICIPANTS
NAME OF PARTICIPANT REGISTRATION NU

QUESTION:
Find an organization of your interest and (advised to pick an organization of one of the group members) and explain in detail how one of the aspects of managerial economics are applied in practice.)

In other hand, production function means the relationship between inputs and outputs.

Input is anything that the firm employs in the production process and the output is what the firm produces using the inputs (Damodaran Suma, 2008- pp 144). In case of TPCC, produce cement as its primary output But to manufacture cement it needs labour (Engineers, Accountants, Economists e.t.c), it needs capital (energy like petrol, electricity and Diesel, raw materials like water and limestone, Machinery), and it also needs land onwhich all economic activities take place including buildings.

The production function can be expressed as an equation, table or graph presenting the maximum amount of a commodity that a firm can produce from a given set of inputs during a period of time.
Mathematically, Q = f (a, b, c.....z), where a, b, c and z are various inputs such as land, labour, capital and energy whereas Q, is the level of output.

1.2 Application of production function in TPCC
The concept of production function portrays the ways in which the factors of production are combined by a firm to produce different levels of output. More specifically, it shows the maximum volume of physical output available from a given set of inputs or the minimum set of inputs necessary to produce any given level of output. The production function has various applications to TPCC in the following economic decisions:

* It is used to compute the least-cost factor combination for a given output or the maximum output combination for a given cost. Consider commodity X which is produced by using two inputs labour and capital and there are two production factories A and B:

Table 1: Production input combination to produce 20 tonnes of cement per week.
Production input | Labour | Capital |
Factory A | 4 | 5 |
Factory B | 6 | 5 |
Source: Maheshwari, Yogesh, Sultanchand and Sons (2009)

In the above table, factory B is inefficient compared to factory A because B uses more of labour and same amount of capital as compared to method A while they produce the same output of 20 tonnes. It applies at TPCC where management evaluate alternatives available to produce the required quantity of cement at minimum cost.

* According to Adhikary, M (2000), Knowledge of production function applies to a firm in deciding on the value of employing a variable factor in the production process. TPCC applies this knowledge by ensuring the marginal revenue productivity of a variable factor exceeds its price, it is profitable to increase its use. When the marginal revenue productivity of the factor becomes equal to its price the additional employment of the factor should be stopped because no profit generated by that factor.

* The production function helps TPCC in return to scale decision making. If the returns to scale are diminishing, it is not worthwhile to increase production. The opposite will be true if the returns to scale are...

## Other Essays Like Managerial Economics

### Managerial Economics Essay

1893 words - 8 pages 1. Analyzing Managerial Decisions: Consumer Choice and Graphical Tools a. Two potential actions that you might take to sell more wine in the country. First, use strong marketing strategy to make wine be more familiar with other alcohol preferred people. Second, add functionality to wine’s concept. Make people think wine as a healthy drink. It will increase wine’s demand

### Managerial Economics Essay

957 words - 4 pages Chapter 3 Quantitative Demand Analysis Overview . The Elasticity Concept Own Price Elasticity Elasticity and Total Revenue Cross-Price Elasticity Income Elasticity II. Demand Functions Linear Log-Linear III. Regression Analysis The Elasticity Concept How responsive is variable “G” to a change in variable “S” If EG,S > 0, then S and G are directly related. If EG,S < 0, then S and G are

### Managerial Economics

807 words - 4 pages Sprite to almost 75% of the country including Comilla, Chittagong, Sylhet, Khulna and Barisal regions, covering the most difficult terrains and demographics. This paper, from the perspective of Economics, and with reference to Cocacola, is an attempt to observe how the company is influencing the beverage sector in Bangladesh. 1. Objectives ( The broad objective of this paper is to carry out thorough study on Coca cola

### Bajaj Research

1582 words - 7 pages principles and concepts from different fields of economics with typical problems of managerial decision-making and policy formulation in business organizations whether in a local or global context. Understanding the application of economic principles to key management decisions will provide guidance to increase value creation within organizations, and allows a better understanding of the external business environment in which organizations

### Managerial Decisions

546 words - 3 pages economic and business environment make it ever more difficult to accurately evaluate the outcome of a business decision. In such a changing environment, sound economic analysis becomes all the more important as a basis of decision making. Managerial economics is a discipline that is designed to provide a solid foundation of economic understanding in order for business managers to make well-informed and well-analyzed managerial decisions. 1

### Syllabus Eco

655 words - 3 pages University of Phoenix Material: Opportunity Cost located on your student website. Nongraded Activities and Preparation Listen to the Week Two podcast. Complete the Economics for Managerial Decision Making: Cost and Revenue Curves simulation located on your student website. Complete the Incremental Costs Scenario activity located on your student website. Individual Assignment: Week Two Quiz * * Complete the Week Two Quiz located

958 words - 4 pages Functional Areas of Business MGT 521 June 15th, 2014 Abstract The functional areas of business are management, law, human resources management, leadership, accounting, finance, economics, research and statistics, operations management, marketing, and strategic planning. I believe all the functional areas are necessary to have a successful organization, however, the two areas stand out as vital to getting a business started and keeping it

### "Describe The Similarities And Differences Between The Second Blueprint Of Management And The Fourth Blueprint Of Management Thought."

501 words - 3 pages like globalization. But the second one still researched the situation as an inter-locking matrix because "classical ideas depend for their efficacy on a certain level of stability in organizations and their environments" (Inkson & Kolb, 1998, p74). The fourth one had jumped from Human side to the collaborative organization with the development of modernisation.Second, their managerial principles are different. The second blueprint believed

### Forecasting Palm Oil Production In Malaysia

450 words - 2 pages the forecasting result and analyze the accuracy of the forecast figures.BibliographyMcGuigan, J.R., R.C. Moyer and F.H. Harris (2005) Managerial Economics: Applications, Strategy, and Tactics. 10th Edition, South-Western.Forecasting Demand: Monitoring Demand Leads to More Profitable Decision-Making, An Oracle White Paper, August 2005Demand Forecasting: Evidence-based Methods, J. Scott Armstrong and Kesten C. Green, Department of

### Ownership Structure and Firm Performance

1859 words - 8 pages . (1999). Understanding the determinants of managerial ownership and the link between ownership and performance. Journal of Financial Economics, 53(3), 353–384. Hu, Y., & Izumida, S. (2008). Ownership concentration and corporate performance: A causal analysis with Japanese panel data. Corporate Governance: An International Review, 16(4), 342–358. Jiang, Y., & Peng, M. W. (2011). Are family ownership and control in large firms good, bad, or

### Management

1389 words - 6 pages Examination Paper of Managerial Economics IIBM Institute of Business Management Examination Paper Subject Code-B106 Managerial Economics Section A: Objective Type & Short Questions (30 marks)      This section consists of multiple choices & Short notes type questions.  Answer all the questions.  Part one carries 1 mark each & Part two carries 5 marks each. MM.100 Part one: Multiple choices: 1. It is a study of economy as a whole. a

## Related Papers

### Managerial Economics Essay 516 Words

516 words - 3 pages .what is meant by managerial economics? Managerial economics is a study of application of managerial skills in economics,more over it help to find problems or obstacles in the business and provide solution for those problems.problems may be relating to costs, prices, forecasting the future market ,human resource management, profits etc. Managerial economics is a study of application of managerial skills in economics, more over it help to

### Managerial Economics Essay 1726 Words

1726 words - 7 pages Managerial Economics – Individual Assignment 1 ------------------------------------------------- Please answer all the following questions: All questions carry equal marks 1) - Managerial economics is the science of directing scarce resources to manage cost effectively. Explain how managerial economics concepts can help understanding strategic decisions. (Max 1000 words) Microeconomics is the study that helps make decisions of

### Managerial Economics Essay 4565 Words

4565 words - 19 pages Managerial economics as defined by Edwin Mansfield is "concerned with application of the economic concepts and economic analysis to the problems of formulating rational managerial decision."[1] It is sometimes referred to as business economics and is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice.[2] It draws

### Semifinal Assessment Managerial Economics Essay

3198 words - 13 pages Managerial Economics Case Studies Institutional Affiliation Managerial Economics Case Studies #1. Three aspects of organizational architecture The three vital components of organizational architecture are: a) assignment of decision rights; b) methods of rewarding individuals; and c) structure of systems to evaluate the performance of both individuals and business units. First, assignment of decision rights involves giving the responsibility