Managerial Economics

Term Paper # 119263

Business > Applied Operations
Business > Human Resources
Business > Management

Looks at the estimation of demand, which is a highly important facet of managerial economics.

1,995 words () | 10 sources | MLA | 2010 | United States

Published on: Apr 13, 2010

Paper Summary:

This paper explains that managerial economics uses basic economic theories and methods to improve managerial decisions by enabling managers to recognize how economic forces affect an organization's behavior. The paper stresses that, when planning and making policy decisions, managers must understand the importance of the concept of supply and demand in terms of the significance of price and the estimation of demand to determine the opportunity costs of overproduction. The paper underscores the need to know the employees' perception of demand as well as the consumers' sensitivity to price of the market in order to increase the accuracy of prediction.

Table of Contents:
Intro
Background
Objectives
Review of Literature
Findings and Analysis
The Opportunity Cost of Managerial Estimation
Measuring Consumer Demand
Managing Knowledge for Accurate Estimation
Using the Employees for Accuracy
The Importance of Price
Conclusion

From the Paper:

"When managing the economic realities of a company while keeping the demand in mind, the managerial theories of Peter Senge are applicable. Peter Senge, a management consultant, fully supports and advances the use of team dynamics to capitalize upon the human assets available to a company. When considering executives' performances across a company, there is little doubt that the whole is greater than the sum of its parts. Thus it is important to capitalize upon the entire machine and not merely one portion."

Sample of Sources Used:

"Chapter 3: Demand Estimation." Helsinki University of Technology. Retrieved on 15 September 2008, from: www.tuta.hut.fi/studies/Courses_and_schedules/Isib/TU-91.2010/lecturenotes/Lecture_2.ppt -
El Feky, Prof. Dr. Fakhry El-Din. "Basics of Managerial Economics." Cairo University: Pathways to Higher Education Project. Retrieved on 15 September 2008, from:
Hansen, Morten T.; Nohria, Nitin; Tierney, Thomas. "What's Your Strategy for Managing Knowledge?" Harvard Business Review. March-April, pp. 1-11. 1999.
Pugh, Katrina; Dixon, Nancy M. "" Harvard Business Review. 86.5, pp. 21-22. 2008.
Coakes, James. "" Financial Management. (14719185), Jun2007, pp. 57-58.