Economic concepts in making business decisions

The use of mathematical logic provides clarity of concepts. Sales decision is concerned with how much to produce and sell for maximizing profit. Expanding this way of thinking, it can be used to look at a lot of different aspects of your life.

How should one go about preparing the quarterly sales volume forecasts? Personnel decisions cover the areas of manpower planning, recruitment, selection, training and development, performance appraisal, promotion, transfer, etc.

Cost and production analysis 3. You spent all that money on the ticket so you should definitely go, right? The opportunity cost of the time an entrepreneur devotes to his own business is the salary he could earn by seeking employment elsewhere.

In addition to nonprofit business organizations, government agencies and other nonprofit organizations such as cooperatives, schools, and museums can use the techniques of managerial decision making to achieve goals in the most efficient manner.

Production planning, profit planning etc depends upon sound pricing practices and accurate cost analysis.

concept of managerial economics

Managers are thus engaged in a continuous process of decision- making through an uncertain future and the overall problem confronting them is one of adjusting to uncertainty.

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Assignment 1 economics