Business Economics 2012 Table of Contents Q1) Explain (using example) the law of diminishing marginal productivity (DMP). Also‚ explain the difference between the law of DMP and law of returns to scale............................................................. 3 Q2) Explain how profit maximizing output is determined in a .............................................................. 9 a) Perfect competitive market ........................................................................
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Principles of Economics According to Campbell‚ “Economics is the social science concerned with the efficient use of scarce resources to achieve the maximum satisfaction of economic wants” (Campbell‚ 2005‚ p. 3‚ Para. 1). For example‚ an individual needs air; however‚ wants a lavish vehicle‚ which the vehicle becomes the economic want. However‚ economics is concerned with obtaining maximum satisfaction through the efficient use of scarce resources. Likely‚ economist view and study economics through the
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Economic Theories The economic theory is divided into 3 theories; capitalism‚ socialism‚ & communism. Capitalism it’s an economic system that is based on private ownership of the means of production and the creation of goods or services for profit. For example‚ Japan & U.S. Adam smith had explained the workings of the free market within the capitalist economies and the individual freedom and choice emphasized. The second theory is Socialism and it’s a theory of
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CARIBBEAN EXAMINATIONS COUNCIL Caribbean Advanced Proficiency Examination CAPE ® ECONOMICS SYLLABUS Effective for examinations from May/June 2010 CXC A20/U2/09 Published by the Caribbean Examinations Council All rights reserved. No part of this publication may be reproduced‚ stored in a retrieval system‚ or transmitted in any form‚ or by any means electronic‚ photocopying‚ recording or otherwise without prior permission of the author or publisher. Correspondence related to
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Murzakarimova Balzhan Management 343 Q1.6 Which concept—the business profit concept or the economic profit concept—provides the more appropriate basis for evaluating business operations? Why? Businesses i know are there to maximize profit and minimize cost.On this basis‚i think the business profit concept is the most appropriate basis for evaluating business operations because banks‚lenders or creditors will the creditworthiness of such business if loan or any other facility has been advanced
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into and out of a country resulting from transactions relating to savings investments and speculations. Economic Growth An increase in the capacity of an economy to produce goods and services‚ compared from one period of time to another. Economic growth can be measured in nominal terms‚ which include inflation‚ or in real terms‚ which are adjusted for inflation. Economics growth refers to an increase in the real GDP or GNP per capita in a country in a given period of time. It can
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Thailand Economic Report Section I; Factual description The economics of Thailand is a mixed economy which means the combination of capitalism and socialism. The government and private sector both involve in business mechanism of the country. Government support private investors to invest in agricultural‚ industry‚ services and at the same time‚ encourage them to purchase shares in important government business. Although the government gives fully support the competitive in the local and international
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MBA 5600 Managerial Economics Assignment #1 1. What impact will the prospect of deprivatization have on investment by managers of privatized firms? The impact will be: - Loosing corporate focus; - Missing planned CEO turnover; - Affecting planned managerial objects and strategic efficiency Obviously‚ normal managers invest in long-term projects‚ products and services‚ deprivatization may come up with a different strategy that not aligned with corporate goals and its profit will probably
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Question 1: Monism versus Pluralism in Economics 4 Introduction 4 Discussion 5 Conclusion 6 References 7 Question 2: Change in Economics 8 Introduction 8 How does change come into existence? 9 Change within Accounting & Control 9 References 12 Question 3: Game theory 13 Introduction 13 Conclusions on Game theory and agency-problems 15 References 16 Question 4: Behavioral Economics 17 Introduction 17 Influences of Behavioral Economics 18 Securities Market (In)efficiency and
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IMPORTANCE OF ECONOMICS Economics help students to understand more about the modern world in making the decision for the future. It also helps us to understand the problems caused by the limited resources and helps students‚ as consumers to make rational choices when making decisions. Besides that‚ students are able to understand the function and role of banks and financial institutions‚ moreover able to understand the information related to the economics. Since most of our daily routines
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