MGCR 293 Lecture Notes - Differential Calculus, Forego, Cash Flow
Document Summary
Economic forces of supply & demand determine: demand for products, prices of resources & cost of production, number of rival firms, nature of pricing strategies, profitability of business investments. Extracts from microeconomic theory the concepts & techniques that enable managers to select strategic direction to allocate efficiently the resources available and to respond effectively to tactical issues. Provides a systematic and logical way of analysing business decisions which focus on economic forces that shape both day to day decision-making as well as long run planning and decision making. Me focuses on the application of microeconomic theory to business problems: microeconomics the study & analysis of individual segments of the economy. Individual consumers: workers & owners of resources. Demand, supply, cost, profit, competition, pricing strategy, entry strategy, market protection strategy, etc. Micro & macro are descriptive, me is prescriptive (rules & techniques to fulfill specified goals)