Managerial Economics

Managerial Economics

Investment Under Certainty

Capital Budgeting is the process by which the firm decides which long-term investments to make. Capital Budgeting projects, i.e., potential…

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Prabhu TL
Managerial Economics

Basic Model of The Firm And Role Of Profits

The Firm’s Intention: Profit Optimisation     The competent management of a business firm needs a best possible solution out of…

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Prabhu TL
Managerial Economics

Business Cycles & Stabilization

Business cycles are the rhythmic fluctuations in the aggregate level of economic activity of a nation. Business cycle comprises of…

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Prabhu TL
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Constant Rate Of Change

Presume it is believed by an analyst that there is a constant…

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Foreign Trade Multiplier

The foreign trade multiplier also known as the export multiplier operates like…

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Concept of Multiplier

Postulations Keynes notion of the multiplier mechanism under definite postulations which bound…

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Prabhu TL

Cost of Capital

Illustration 1 Presume a software company has a target capital structure of…

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Prabhu TL

Accelerator Theory of Investment

There is a concept of accelerator which was not taken into account…

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Demand Function

Determination of Price Elasticity from a Demand Function Illustration 1     Presume…

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Design of Tax System

Taxes and Efficiency             The aim of tax system is to raise…

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Demand Analysis

The Demand Curve A demand curve is a graph showing the relationship…

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Inflation & ITS Control Measures

Inflation In economics, inflation means rise in the general level of prices…

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Modern Theories of Economic Growth

Definition of Economic Growth Economic growth refers to an increase in the…

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