Managerial Economics 4 min read
Constant Rate Of Change
Presume it is believed by an analyst that there is a constant rate of change in sales from one quarter…
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Foreign Trade Multiplier
The foreign trade multiplier also known as the export multiplier operates like the investment multiplier of Keynes. It may be…
Managerial Economics 5 min read
Drift Theory of Consumption
On the first attempts to reconcile the short run and long run consumption functions was by Arhur Smithies and James Tobin. They…
Managerial Economics 4 min read
Concept of Multiplier
Postulations Keynes notion of the multiplier mechanism under definite postulations which bound the process of the multiplier. They are as…
Managerial Economics 14 min read
Cost of Capital
Illustration 1 Presume a software company has a target capital structure of 50% equity and 50% debt. Over the subsequent…
Managerial Economics 4 min read
Accelerator Theory of Investment
There is a concept of accelerator which was not taken into account by Keynes has become popular after Keynes, especially…
Managerial Economics 19 min read
Demand Function
Determination of Price Elasticity from a Demand Function Illustration 1 Presume the price of a product drops from $12…
Managerial Economics 4 min read
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…
Managerial Economics 8 min read
Design of Tax System
Taxes and Efficiency The aim of tax system is to raise revenue for the administration. However there are many…
Managerial Economics 5 min read
Demand Analysis
The Demand Curve A demand curve is a graph showing the relationship between the price of a certain item and…
Managerial Economics 3 min read
Inflation & ITS Control Measures
Inflation In economics, inflation means rise in the general level of prices of goods and services over a period of…
Managerial Economics 3 min read
Business Cycles & Stabilization
Business cycles are the rhythmic fluctuations in the aggregate level of economic activity of a nation. Business cycle comprises of…