Managerial Economics Full Lecture Notes Bput Pdf

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Study of Managerial Economics essentially involves the analysis of certain . Any discussion on demand cannot be complete without understanding supply.

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Managerial Economics, ME Study Materials, Engineering Class handwritten notes, exam notes, . Note for Managerial Economics - ME by Bput Toppers.

Managerial Economics question paper BPUT MBA first semester, 2017. Posted by : Somya Sahoo. College Name : BITM.

View Notes - ME Managerial Economics notes from MBA 25200 at IMT Institute for Advanced Studies. NOTES ON . View full document . College of IT & Management Education (CIME), Bhubaneswar (A Constituent College of BPUT, Odisha).

BPUT mba 1 sem managerial economics mgt102 2018 question papers and solutions answers Biju Patnaik University Rourkela Odisha.

Details may constitute a former lecturer of managerial economics tools to resolve them and works . Doctor of bput mba full form style overrides in engineering.

These notes have been prepared to help the students of BPUT in their . Gupta, “ Managerial Economics”, TMH. 5. Lal and . demand curve market as a whole.

Master in Business Administration 2 year full time Programme in Management Approved by AICTE & Affiliated to BPUT, Odisha. . MNG 104, Economics for Management, 4, 100, 50, 150. MNG 105, Management Principles and Practices, 3.

Managerial Economics. Managerial Economics. Saroj Kumar. Reference BPUT/MBA/1/03. Quantity. This product is not sold individually. You must select at least.

Total revenue (TR) = P×Q. Relationship:

If demand is elastic (|Ep|>1): price ↓ causes TR ↑, and price ↑ causes TR ↓.
If demand is inelastic (|Ep|<1): price ↑ causes TR ↑, and price ↓ causes TR ↓.
If unitary (|Ep|=1): TR remains unchanged when price changes.

This guides pricing decisions.

NPV is the net value added by a project in present value terms.

Formula: NPV = PV of inflows − Initial investment Decision rule: Accept if NPV > 0, reject if NPV < 0.

NPV considers TVM and all cash flows, so it supports wealth maximisation.

Factors affecting price elasticity:

Availability of close substitutes: more substitutes → more elastic demand (customers can switch).
Nature of good: necessities are usually inelastic; luxuries are elastic.
Proportion of income: goods taking a high share of income are more elastic.
Time period: demand becomes more elastic in the long run as consumers adjust habits and find alternatives.
Number of uses: goods with multiple uses show higher elasticity because consumers can reduce some uses.
Habit-forming/addictive goods tend to be inelastic.

Managerial use in pricing:

If demand is elastic, increasing price will sharply reduce quantity and total revenue; better strategy may be to reduce price, improve value, or differentiate product.
If demand is inelastic, increasing price may increase total revenue; firms can raise prices (carefully) to improve revenue, especially for necessities.
Elasticity also guides discount policy: discount works better when demand is elastic.

Hence managers estimate elasticity before changing prices to avoid unexpected revenue loss.

Total revenue (TR) = P×Q. Relationship:

If demand is elastic (|Ep|>1): price ↓ causes TR ↑, and price ↑ causes TR ↓.
If demand is inelastic (|Ep|<1): price ↑ causes TR ↑, and price ↓ causes TR ↓.
If unitary (|Ep|=1): TR remains unchanged when price changes.

This guides pricing decisions.

NPV is the net value added by a project in present value terms.

Formula: NPV = PV of inflows − Initial investment Decision rule: Accept if NPV > 0, reject if NPV < 0.

NPV considers TVM and all cash flows, so it supports wealth maximisation.

Factors affecting price elasticity:

Availability of close substitutes: more substitutes → more elastic demand (customers can switch).
Nature of good: necessities are usually inelastic; luxuries are elastic.
Proportion of income: goods taking a high share of income are more elastic.
Time period: demand becomes more elastic in the long run as consumers adjust habits and find alternatives.
Number of uses: goods with multiple uses show higher elasticity because consumers can reduce some uses.
Habit-forming/addictive goods tend to be inelastic.

Managerial use in pricing:

If demand is elastic, increasing price will sharply reduce quantity and total revenue; better strategy may be to reduce price, improve value, or differentiate product.
If demand is inelastic, increasing price may increase total revenue; firms can raise prices (carefully) to improve revenue, especially for necessities.
Elasticity also guides discount policy: discount works better when demand is elastic.

Hence managers estimate elasticity before changing prices to avoid unexpected revenue loss.

Managerial Economics full lecture notes bput pdf

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