Application of Managerial Economics in Decision Making
1.0 Introduction 7
1.1 Definition of managerial economics 7
1.2 Choice and opportunity cost 9
2.0 Basic concerns of economics 9
3.0.0 Theories of economics 12
3.1.0 The theory of demand 13
3.1.1 Tastes 14
3.1.2 Number of buyers 14
3.1.3 Income 14
3.1.5 Expectations 15
3.2 The theory of supply 16
3.3 The theory of production 16
3.4 The theory of price( in government) 17
3.5 The theory of consumer behaviour 17
3.5.1 Rational behaviour 17
3.5.2 Preferences 17
3.5.3 Budget constraint 18
3.5.4 Prices 18
4.0 Managerial Economics and Economic Theories 18
5.0 General overview of the office of the Attorney General 19
6.0 Decision-making centres under the Office of the Attorney General 20
6.1 Decisions in the Office of the Attorney General: 21
6.2 The role of Public Procurement Act, 2007 in decision-making and application economic theories 23
6.3 Other decisions 25
6.3.1 Employment decisions 25
6.3.2 Training decisions 25
6.4 Economic decisions of the Office of the Attorney General and budget constraint 25
7.0 Conclusion 26
References 28
TOPIC: APPLICATION OF MANAGERIAL ECONOMICS IN DECISION MAKING
Introduction
This paper attempt to discuss the application of managerial economics in decision-making in an organisation of my workplace. In discussing managerial economics a link has been made to some economic theories and their influence in decision making. The organisation selected is the Office of the Attorney General.
The first part of the paper discusses; what managerial economics is and how it relates to economics; the concept of opportunity cost and its application; what are the concerns of economics and how they have been responded.
The second part of this paper discusses theories of economics which the office of the Attorney General apply directly or indirectly in its decisions. The theories which have been looked at are: theory of demand, theory of supply, theory of consumer behaviour, production theory and price theory. It is in this
1.1 Definition of managerial economics 7
1.2 Choice and opportunity cost 9
2.0 Basic concerns of economics 9
3.0.0 Theories of economics 12
3.1.0 The theory of demand 13
3.1.1 Tastes 14
3.1.2 Number of buyers 14
3.1.3 Income 14
3.1.5 Expectations 15
3.2 The theory of supply 16
3.3 The theory of production 16
3.4 The theory of price( in government) 17
3.5 The theory of consumer behaviour 17
3.5.1 Rational behaviour 17
3.5.2 Preferences 17
3.5.3 Budget constraint 18
3.5.4 Prices 18
4.0 Managerial Economics and Economic Theories 18
5.0 General overview of the office of the Attorney General 19
6.0 Decision-making centres under the Office of the Attorney General 20
6.1 Decisions in the Office of the Attorney General: 21
6.2 The role of Public Procurement Act, 2007 in decision-making and application economic theories 23
6.3 Other decisions 25
6.3.1 Employment decisions 25
6.3.2 Training decisions 25
6.4 Economic decisions of the Office of the Attorney General and budget constraint 25
7.0 Conclusion 26
References 28
TOPIC: APPLICATION OF MANAGERIAL ECONOMICS IN DECISION MAKING
Introduction
This paper attempt to discuss the application of managerial economics in decision-making in an organisation of my workplace. In discussing managerial economics a link has been made to some economic theories and their influence in decision making. The organisation selected is the Office of the Attorney General.
The first part of the paper discusses; what managerial economics is and how it relates to economics; the concept of opportunity cost and its application; what are the concerns of economics and how they have been responded.
The second part of this paper discusses theories of economics which the office of the Attorney General apply directly or indirectly in its decisions. The theories which have been looked at are: theory of demand, theory of supply, theory of consumer behaviour, production theory and price theory. It is in this
References: McMconnell, C. R and Brue, S. L,(2005) Economics: Principles, Problems, and Policies (16th edn) McGuigan, J.R., Moyer, R.C, etal (2005), Managerial Economics: Application, Strategy and Tactics.(10th edn), United States of America Jehovaness, A.,(2009),” The Impact of Global Financial Crisis on Developing Countries”. A paper presented in the seminar on International Accounting Standards and Ngowi, H.P. (20100. “The current Global Financial and Economic Crisis and its impact on Africa” The Constitution of the United Republic of Tanzania The Public Procurement Act, 2007