Economy

A Text Book of Business Economics by Pareek, Saroj

By Pareek, Saroj

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II After all, the case method involves an analysis of a given situation through evaluation of facts, organisation of facts into meaningful patterns, the weighing of important. , the act of making decision. Overview: Managerial economics is both conceptual and metrical. As such the knowledge of a few fundamental concepts and a few measurement techniques, relevant in the process of applying Measurement Techniques of Marginal Economics, 35 economic analysis in examining business decisions, is basic to the subject of managerial economics.

Important Terms Used in Managerial Economics 39 3. g. storing of articles by shopkeepers, storing of vegetables and fruits in cold storage for sale when they are not available in season. 4. g. selling of a table by carpenter to an office. 5. g. doctors, lawyers, teachers domestic servants etc. (7) Market: In ordinary sense, a market is a place where things are bought and sold. But in economic sense, a market is a place or region, where buyers and sellers have free competition with one another. The buyers and sellers may not beat one place.

The process continues. Income increases and me prices also increase. The demand for loans rises. Bank reserves get depleted owing to increased cash circulation. The banks increase rates of interest and hesitate to advance loans. From this point the trend of trade·takes a tum. 4. Psychological Theory: According to this theory, the cause of the cycle is business confidence or rather over confidence. During, boom, people expect more profits and expand their business and carry production beyond profitable sale.

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