Managerial Economics : The Coca-Cola Company Almost all decisions in a company have an economic consequence. Managerial economics is an integral‚ relevant part of business management processes that involves cost‚ revenues and profits‚ considering not only the monetary costs‚ but nonmonetary costs as well – monetary‚ in terms of cash flow in and out and any excess revenue over costs or profit; nonmonetary‚ in terms of benefit for the consumer – whether its affect psychically is good or bad causing
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Introduction Kenya ’s earliest telecommunications connections to the outside world were the submarine cables linking Zanzibar‚ Mombasa‚ and Dar es Salaam laid by the Eastern & South African Telegraph Company in 1888. Internally‚ the construction of a telegraph net work began with a 200-mile coastal line linking the port city of Mombasa with Lamu. Extension into the interior of the country began in 1896 in conjunction with the building of the railway system‚ forming a dual "backbone" for Kenya ’s communications
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All Rights Reserved 2– 2 CLASSIFICATION OF GOODS AND SERVICES Free goods are goods that have no production cost. Public goods are goods that are for common use and will benefit everyone. Economic goods are goods of value that can be seen and touched. Economic services are intangible things (with value) that cannot been seen or touched. All Rights Reserved 2– 3 LAW OF DEMAND Law of demand states that the higher the price of a good‚ the lower is the quantity
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Certainty. Revenue can be predicted using the Demand Curve. P = 170 - 20Q or equivalently‚ Q = 8.5 - .05P Write profit as = R - C Price ($ 000) 170 130 90 50 Quantity in Lots 0 2 4 6 8 THE FIRM’S OPTIMAL OUTPUT DECISION R‚ C The Firm determines Output where MR = MC. 2.3 C = 100 + 38Q 300 200 100 0 M = 0 R = 170Q - Q2 -100 0 2 3.3 4 6 8 Q MAXIMIZING PROFIT ALGEBRAIC SOLUTIONS 2.4 Start with Demand and Cost Information
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An explanation of how decision-making is dealt with in economic analysis requires an examination of the main factors at play. These factors amongst others are looked at as a base for decision making. Supply and Demand are the most fundamental tools used in economic analysis. I will explain what demand is and how the demand curve is derived. I will also write about Supply and its relationship with Demand. I will examine equilibrium price (market clearing price) and how we can calculate or plot it
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unlikely that project manger select the the project whose cost exceeds its benefits. Benefits can be measured either finacial or non-finacial. The puposuse of idetifying the financial benefits is called copital budgeting‚ which may be defined as decision making process by which organization evaluate the projects that include the purchase of major fixed assets such as machinary ‚ building‚ and equipments. So there are two main catagories of selection of project‚ 1-Financial model 2-Non- financila
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Consumer as Decision Makers Consumer decision-making Stage 1: Need recognition Stage 2: Pre-purchase search Stage 3: Evaluation of alternatives Stage 4: Purchase Stage 5: Post-purchase behavior Stage 1: Need recognition Needs Motivation Goal If goals not achieved‚ renewed motivations Motivation – the driving force to take action produced by a state of tension due to unfulfilled needs. How to identify consumer needs? Consumer research Activity analysis (process-oriented) Problem analysis
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times of economic struggles many of us have have been placed in making decisions under risky conditions. For example‚ as a contractor my husband has been laid off twice in the past three years‚ however we decided to buy a house. There were many things that could have happened that would have ended our dream‚ but in the end it all worked out and it was worth the risk. 3-17 (use QM) ( a) What type of decision is Ken facing? Ken is facing a decision under uncertainty. ( b) What decision criterion
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1. Distinguish between Micro economics and Macro economics. Microeconomics may be defined as that branch of economic analysis‚ which studies the economic behavior of the individual unit‚ maybe a person‚ a particular household‚ or a particular firm. It is a study of one particular unit rather than all the units combined together. In microeconomics‚ we study the various units of the economy‚ how they function and how they reach their equilibrium. An important tool used in that of microeconomics is
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1. What do you understand by Managerial Economics? Give Definition and meaning of Managerial Economics. Economics is the branch of Knowledge that deals with how the scarce resources can be used to produce valuable goods and services and distribute them efficiently among different classes of people in the society. What is Managerial Economics? Douglas - “Managerial economics is the application of economic principles and methodologies to the decision-making process within the firm or organization
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