Chapter One Introduction
The first section of the research object of management economics
1. The definition of managerial economics
- The concept of managerial economics
managerial economics and decision science theory is the use of economic analysis tools that enable enterprise organizations to a certain economic environment, under various constraints facing most effectively achieve its own stated goals of science
to It is the microeconomic environment that has a greater impact on corporate decision-making, so the main content of the economic environment is more focused on the microeconomics part of economics. - The research object of management economics The research object of
economic management is management decision-making problems related to resource allocation, mainly output decision-making and price decision-making.
The research object of management economics is enterprise
2. The basic process of decision-making
The so-called decision science is to study the determination of decision goals, how to select the best plan among the steps and methods available for decision makers to achieve the established goals. The
decision-making process generally includes the following five steps:
(1) Clear The problems faced by the enterprise
(2) Determine the goals of the enterprise
(3) List possible solutions to determine the enterprise’s problems
(4) Choose the best solution from the listed solutions
(5) Carry out the best solution
The conditions for correct decision-making include
(1) Clear the decision objectives
(2) higher quality of decision-makers
(3) more adequate decision-making information materials
(4) scientific theories and methods of
the guidelines is the right decision: the decision to take the case before than after the decision has been taken improve
3. The relationship between managerial economics and microeconomics
- Microeconomics
Microeconomics studies the economic behavior of individual economic units (including enterprises, households, consumers, markets, etc.) and their mutual influence, thereby explaining how the market economy solves resource problems. - The difference between managerial economics and microeconomics
| Managerial economics | Microeconomics | |
|---|---|---|
| purpose | Solve the decision-making problems of enterprises and provide economic analysis tools | Solve the behaviors of microeconomic entities and understand how the price mechanism can achieve the optimal allocation of economic resources |
| research method | Normative: establish a series of rules and methods to achieve specific goals | Descriptive: describe economic operations |
| Assumptions | According to the observed choices of economic agents, infer its utility function or profit function, and make further conjectures | Assume that economic agents (enterprises or consumers) have a specific utility function |
Section 2 Basic Analysis Methods of Management Economics
1. Unconstrained optimization
The output of the company's products and the amount of resources invested. Under the condition that the price and advertising expenses are not restricted, the optimization decision of the enterprise is called: unconstrained (in fact, an ideal state) optimization
- Marginal and Marginal Analysis
Simply put, the marginal means "increment", that is, the change of certain variables. Marginal analysis is a method that uses marginal value (value added) as a basis for decision-making, and marginal analysis is the most important in the description of optimal decision-making.
The commonly used marginal values in management economics mainly include:
Marginal output = total output change/a certain input element change
marginal revenue = total revenue change/ output change
marginal cost = total cost change/ output change
marginal profit = total Change in profit / change in output = marginal revenue-marginal cost
The slope (margin) of the maximum and minimum function is 0. It may be the maximum point or the minimum point. Let the first derivative equal to 0 [ie df(x) / dx = 0]
to determine the maximum and minimum values here. The second derivative is used to determine whether it is the maximum or minimum.
If the second derivative is negative, the function obtains the minimum value. If the second derivative is positive: the function obtains the maximum value
2. Constrained optimization
The so-called "constrained" means that the amount of allocated business or resources is limited and established. This kind of constrained optimization problem can usually be solved by linear programming. In practice, in addition to the use of margin, maximum and minimum, Lagrangian functions are also commonly used
Section 3 Enterprises under Market Economy Conditions
1. The concept and characteristics of the enterprise
- The concept of an
enterprise An enterprise is an economic entity that organizes various production factors for the purpose of profitability, and after conversion, provides products or labor services for consumers or other enterprises. The forms of enterprises include individual-owned small businesses, partnerships, limited companies, and joint-stock companies. - The characteristics of enterprises
In a market economy, enterprises are the most important subject of market activities. As the main body of the market, it must have three basic characteristics, it must
operate independently , it must be responsible for its own profits and losses, and its property rights must be clear.
2. Enterprise Theory
- The root cause of the enterprise:
When the owners and purchasers of the factors of production have insufficient information about the use efficiency of the factors in the production process and the results of the production bring great probability, the transaction costs will be very high. In order to reduce this A kind of transaction cost. Factor owners and users transfer factor production rights in the form of contracts. For example, workers transfer the right to use labor through contracts and voluntarily submit to the administrative management of the enterprise's production process instead of selling their own services through the market. And products. Therefore, this organizational form of enterprise internalizes the transaction of production factors - The goal of an enterprise engaged in economic activities.
When pursuing short-term maximization, business managers must consider the maximization of the company’s future or long-term profits. That is to say, the goal of an enterprise’s economic activities is to maximize the value of the enterprise
3. Corporate profits and decision-making
- Corporate profit
(1) Accounting profit.
Accounting profit is the difference between the sales income that the enterprise has obtained minus the various expenses that have occurred in the accounting accounts
(2) Economic profit
Economic profit is the income obtained by the enterprise minus the sum of the linear costs and hidden costs of engaging in a certain economic activity. The latter is the opportunity cost of business owners who provide capital, natural resources, and labor.
Only economic profit is the basis for decision-making. The important responsibility of the decision-maker is to use the reasonable cooperation of resources to continuously tap the profit potential within the enterprise and convert it into book profits. - Opportunity cost
Opportunity cost is defined as a certain economic resource being used for a specific purpose and giving up the highest possible benefit of the economic resource in other uses. - Important decision-
making of an enterprise Decision- making is the choice of various feasible solutions for realistic goals. Broadly speaking, the enterprise decision-making issues discussed by management economics are mainly manifested in the following three aspects:
(1) Who produces for and what. In essence, it is the company's market positioning decision.
(2) How much is produced. The output decision is not only related to the internal enterprise, but also related to the external market supply and demand situation.
(3) How to produce the most economical. It is required that enterprises must conduct economic accounting and strive to use the least factor input and the best combination of factor input. The most appropriate exchange method to achieve maximum output.
Multiple choice questions
- The main content of managerial economics is more focused on the (microeconomics) part of economic science
- Microeconomics, by studying the economic behavior of individual economic units and their mutual influence, explains how to solve the market economy (resource allocation problem)
- The point where the first derivative of the function is 0 may be the maximum point or the minimum point
- The basic characteristics of an enterprise: it must operate independently, it must bear its own losses, and its property rights must be clear
- A manufacturing manager found that for every additional 500 products produced, the total cost will increase by 50,000 yuan, and the total revenue will increase by 200,000 yuan. The marginal profit is 300.
Marginal profit = total profit change / output change = (200000-50000 ) / 500 = 300 (yuan/piece) - In practice, constrained optimization requires more analysis (Lagrangian function) than unconstrained optimization
- The connection between managerial economics and microeconomics and management is reflected in the theoretical foundation of managerial economics from economics
- The purpose of studying managerial economics: to solve business decision-making problems
- The cost concept used to judge whether the resource is really optimally used is (opportunity cost)
- When making management decisions, opportunity cost must be used
- Under certain conditions of resources, the corresponding net income of the three existing options A, B, and C are 1 million yuan, 1.5 million yuan, and 1.2 million yuan respectively. If option B is selected, the opportunity cost is 1.2 million yuan (removal of 1.5 million yuan to take the highest value)
Two, short answer questions
- What are the conditions for the right decision?
Clear decision-making goals,
high quality of decision-makers,
adequate decision-making information and
scientific theories and methods - How many steps does the enterprise decision-making process take?
(1) clear enterprises are facing the problem
(2) determine the business goals
(3) lists to solve business problems possible options
(4) From the list of solutions to choose the optimal solution
(5) implementation of the optimal solution - What is managerial economics? What are the main differences between managerial economics and microeconomics?
Managerial Economics and Decision Sciences is using the theory of economic analysis tools that enable enterprise organizations to a certain economic environment, under the various constraints faced by the most effective to reach the stated goal of its own scientific
management and micro economics Economics is closely related but different, mainly in:
(1) Microeconomics explores the behavior of all microeconomic entities; managerial economics only serves business managers.
(2) The view of microeconomics describes how the economy works, and does not involve the issue of how to operate; management economics is mainly a normative study, trying to establish a series of rules and methods to achieve specific goals
(3) Microeconomics in general Assuming that an economic agent (enterprise or consumer) has a specific utility function, then analyze its optimal choice under certain constraints; management economics generally does not presuppose its utility function in advance, but based on the observed choices of economic agents , Under rational conditions, infer its utility function or profit function, and make further predictions - Under the conditions of a market economy, what is the root cause of an enterprise? As the main body and basic decision-making unit of the market, what basic characteristics must it possess?
When the owners and purchasers of the factors of production have insufficient information on the use efficiency of the factors in the production process and the results of the production bring great probability, the transaction cost will be very high. In order to reduce this transaction cost, Factor owners and users transfer the production rights of the factors in the form of contracts and voluntarily submit to the administrative management of the enterprise's production process, instead of selling their own services and products through the market. Therefore, this organizational form of enterprise internalizes the transaction of production factors.
As the main body of the market, it must have the following basic characteristics
(1) The enterprise must operate independently
(2) The enterprise must be responsible for its own profits and losses
(3) The property rights of the enterprise must be clear
A guarantee for you for the future!
The boyfriend can’t make the girlfriend angry. The girlfriend is angry because the boyfriend is wrong. In any case, the boyfriend is wrong. If the boyfriend is wrong, he must willingly accept any punishment from the girlfriend, otherwise he will be matched with the girlfriend boyfriend. Just spit on Han, the boyfriend should make his girlfriend more happy and think more about his girlfriend, know how to pity and cherish his girlfriend, and take care of his girlfriend. To be continued. . . .