Everything you need to know about the objectives of business. The business is an economic institution operating in a socio-economic system. Therefore, objectives of business should be defined keeping in view its prevailing environment and its needs for survival and growth. Like any other institution business has several rather than a single objective. Objectives of business are multi-dimensional in nature. [...]
Here is a list of eight main theories of profit in managerial economics. The theories are: 1. Risk-Bearing Theory of Profit 2. Uncertainty-Bearing Theory of Profit 3. Rent Theory of Profit 4. Innovation Theory of Profit 5. Dynamic Theory of Profit 6. Monopoly Power Theory of Profit 7. Labour Exploitation Theory of Profit 8. Marginal Productivity Theory of Profit. 1. [...]
The following points highlight the seven fundamental concepts of managerial economics. The concepts are: 1. The Incremental Concept 2. The Concept of Time Perspective 3. The Concept of Discounting Principle 4. The Opportunity Cost Concept 5. The Concept of Equimarginal Principle 6. The Contribution Concept 7. The Concept of Negotiation Principle. Managerial Economics: Concept # 1. The Incremental Concept: It [...]