Managerial economics

About: Managerial economics is a research topic. Over the lifetime, 1524 publications have been published within this topic receiving 83965 citations.

Study guide for use with managerial economics & business strategy

Abstract: The best way to learn economics is to work lots of problems, which is exactly what students will get when they purchase the Baye Study Guide. Each chapter presentation includes outlines, key concept reviews, multiple-choice and true/false questions, technical problems, and a complete set of answers to all aforementioned materials.

A managerial economist's forecast for meat consumption in Malaysia: Implications to farmers and investors

Abstract: In this consumer driven chain, the changes in meat consumption at consumer level indeed provide implication for upstream production While econometrics based analysis and forecast are hard to be understood and digested by farmers or investors, a simple forecast from the perspectives of managerial economics as laid down in the objective of this study perhaps provide valuable insights on the future movement of meat consumption and demand By using simple forecasting technique using mathematical model, farmers and investors can expect that poultry is to be continuing its vital role as the main source for meat in the country This is to be coupled with increasing consumption in beef and mutton However, it is likely the decreasing trend in pork is to be continued Alternative pig farming system is identically the main concern in promising consumers food safety, freedom of disease, and a way of reclaiming the joy of eating by growing pig that is environmentally sustainable and socially responsible The challenge is certain, extra efforts must be contributed to reduce the cost of supply chain amid of the increasing retail price of pork that drives consumers away to seek for cheaper substitution

Pricing Practices in Very Small Businesses: A Replicative Study

Abstract: Pricing is an important decision in small business management. This paper explores the factors that impact small business owners/managers in setting and changing prices. Satisfactory profits, costs and competitors' decisions seem to be the basic factors that affect setting and changing prices among small business owners/managers. Additionally we explore non-price tools used by small business as an alternative way to compete. INTRODUCTION In 2010, the authors conducted a study of very small businesses in northeast Louisiana to determine if small firms use the established economic principles that economists rely on when explaining the behavior of large firms regarding pricing objectives and strategies. The original study was conducted with a sample of small businesses using a questionnaire designed to indicate respondents' agreement or disagreement with a series of questions regarding pricing practices. In reviewing the findings of this study, the authors felt that questionnaire used in the original study did not clearly reveal the true underlying values of small business owners/managers in making initial pricing decisions or really identify the factors that most influence owners/mangers to change previous pricing decisions. This replicative study is conducted in the same geographic area with a similar sample of small businesses, but with a questionnaire designed to force entrepreneurs to identify their basic values concerning initial pricing and indicate the relative importance among factors influencing changes in pricing. That is, instead of asking respondents to agree or disagree with each of the four alternatives in the statement, "When setting prices, I always try to maximize profits, make satisfactory profits, maintain market share, and cover variable costs, we ask respondents to make a single choice between the four alternatives that reflects their underlying concern in pricing products and services. We believe this type of questioning forces the respondent into revealing the most critical elements in the pricing decision process, and thus, provide us better insights into the pricing decision processes of owners/managers of very small businesses. BACKGROUND Large businesses use, probably because they have more information, established economic principles to develop goals, price strategies and similar management decisions. From microeconomics textbooks such as Hyman (2010) and Parkin (2012) to managerial economics textbooks such as Keat & Young (2009) and Thomas & Maurice (201 1), the basic principles of price theory have been well documented and thoroughly explained. General economic theory suggests that: a. The objective of the firm is to maximize profits. b. Optimal prices are chosen based on the demand the firm faces in order to at least cover variable costs and to meet the goal of profit maximization. c. Changes in the optimal price will occur in response to changes in costs or market conditions. d. Competition can be undertaken in ways other than price changes. Specifically, for example, Hyman (2010) states ". . .models based on the assumption that those who operate firms seek to maximize profits have proved to be very fruitful. These models have consistently yielded hypotheses that empirical evidence has supported." (Chapter 8, page 7) Parkin (2012) describes the pricing decision as "It (the firm) produces the quantity at which marginal revenue equals marginal cost and then charges the price that buyers are willing to pay for that quantity. . . " (p. 327). Thomas and Maurice (20 1 1 ) describe in considerable detail how firms typically respond to changes in costs (pp. 404-415) and changes in demand (pp. 476-477). They conclude that if costs increase, firms should reduce output and increase price. If demand increases, firms should raise output and raise price. Keat and Young (2009) describe the different ways that firms can compete other than through price. …