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Our economics problem solvers provide excellent economics homework help that covers all major economics assignment topics such as given below (in alphabetical order). Click on any of the topcis for more information:
Business economics is an applied field of economics which involves the study of organizational, financial, market and economic issues facing businesses. It is concerned with the application of economic concepts and methods to day to day business operations and problems. Based on the application of those concepts and quantitative methods it aims to help businesses identify and address issues related to organization of the business, management, strategy and expansion.
Crucial areas of research in the field of business economics include the impact of entrepreneurship, business to business interactions, factors affecting expansion decisions of businesses, and the government’s role in the conduct of business through policies and regulations. Research in these areas is based mostly on the economic concepts of scarcity, demand analysis and forecasting, production and cost analysis, product pricing, wealth governance, and profit management, consumption, distribution and product factors. Managerial economics, which is concerned with assisting managers in making economic decisions, is an important sub-branch of business economics. Business economists are usually members of professional associations such as the National Association of Business Economics (NABE) in the US.
By a broad definition, economics is the study of the functions and components of a given economy or marketplace. Fundamental concepts of economics by this definition are the scarcity of resources and the relationship between demand and supply. Factors of production, consumption and distribution methods are other important economic concepts that affect businesses. The focus of business economics is on the impact of such economic concepts and factors on business operations and how they influence or are influenced by the economy as a whole. Therefore, the concept of business economics has been designed to address economic theory and principles, standard business practices, strategies, capital acquisition, production efficiency, profit generation, and overall strategy to manage the business. Being a very broad concept, it also involves the study of how external factors such as sudden shifts in the prices of raw materials and changes in industry-specific government regulations affect or mould business decisions.
Concepts and methods from both microeconomics and macroeconomics are used in business economics to study economic philosophies, models and approaches with the aim of solving rational business problems. It also draws heavily from normative economics in order to provide important tools to improve the efficiency of business administration and to identify and solve a wide range of economic problems.
As can already be seen, the field of business economics encompasses several microeconomic and macroeconomic concepts. This means that its scope extends to almost all aspects of a business. The main areas of business economics are:
Demand Analysis and Forecasting: It helps businesses create realistic production schedules and maximize the utility of resources. Through the application of various quantitative methods, it also allows them to maintain their market share while facing competition and boost revenues and position in the market by factoring in the variables that affect demand.
Production and Cost Analysis: Business economics entails the assessment of production and cost of different types of products. It also studies the reasons leading to cost overruns. Managers use business economics methods such as break-even analysis to determine output levels at which production costs can be minimized and wastage of time and resources could be avoided in order to achieve the desired profit margins.
Costing Decisions: Higher levels of earnings depend on correct valuation of the business which in turn depends on how effectively the management makes costing decisions. Key aspects of business economics that help make effective costing decisions include pricing methods, product line pricing, price discovery in several forms of the market, and differential pricing.
Profit Management: Business managers must have the ability to evaluate the company’s product pricing and expected gains at different levels of output as precisely as possible. Economic methods of identifying and reducing uncertainties help businesses generate higher levels of revenue. Key profit management methods of business economics include profit planning and profit calculation, both of which are also the most complex concepts in the field.
Wealth Management: Managing wealth is a key concern for businesses. Effective management can help in efficient utilization of funds and comply with financial regulations. It involves the study of organizational and government policies and assessment of capital expenses because businesses are generally dealing with huge amounts of capital. Wealth management techniques are also important for businesses looking to dispose of their capital assets which can be quite complicated and labor and time-intensive a task. Using business economics allows businesses to efficiently manage and report their current assets and liabilities not only for compliance but also for selling them off.
Identifying and Solving Business Problems: The application of economic concepts such as demand and supply, short-run and long-run costs, and the law of diminishing marginal utility are used by business managers to identify and resolve the most complex of economic issues faced by organizations.
Developing Policies for Profitable Business: Business economics methods of economic assessment and data analysis are especially suited for developing policies such as costing and pricing policies with the objective of maximizing profitability of the business.
Predicting the Future: Comprehensive analysis of internal and external economic factors such as capital, government regulations, cost and availability of resources, and cost of production help economists predict the future of the business with a higher degree of accuracy. Projections about demand, costs, resources, etc. allow them to identify potential roadblocks and handle unwanted situations ahead of time and devise strategies so that the business can continue to operate smoothly.
Aligning Different Financial Aspects of the Business: Business economics helps managers to identify and align the relationship among diverse financial aspects of the business such as revenue and income, profit and loss, and market share. It also helps them with seamless management of the business and efficient decision-making.
Managerial Economics is the branch of business economics that focuses usually on the microeconomic agents that affect the managerial decision-making process in an organization. The concepts of managerial economics are intended to drive corporate strategies towards the achievement of best possible outcome for the organization. Managerial economics is applied to all types of organizations—from private and public sectors to profit-making and nonprofit organizations. It helps them assess the internal and external economic environments in order to remain competitive in their market. The main objective of managerial economics across sectors and industries is to optimize the utilization of available resources so that production and profitability can be maximized and wastage minimized.
While profit-making and nonprofit organizations have different goals and views to business, they both require similar management capabilities and perform similar functions. They both also have to find ways to maximize the utilization of resources and minimize wastage to improve efficiency and be more competitive and genuine business enterprises. Both are required by law to maintain a specified minimum level of capital to allow them to continue functioning in the economy. When it comes to maintaining capital and a source of revenue for cash flow, they cannot sustain without applying the concepts and methods of business economics. For example, business economics is extensively used by the managers of profit-making as well as nonprofit organizations to make strategic decisions about resource acquisition and allotment, wages, production, promotional activities, and customer or community engagement irrespective of the nature and goal of the business.
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