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A demand forecast is the prediction of what will happen to your COMPANY's EXISTING product sales. It would be best to determine the demand forecast using a multi-functional approach. The INPUTS from sales and MARKETING, finance, and production should be considered. The final demand forecast is the consensus of all participating managers. You MAY also want to put up a Sales and Operations Planning group composed of representatives from the different departments that will be tasked to prepare the demand forecast.

A demand forecast is the prediction of what will happen to your company's existing product sales. It would be best to determine the demand forecast using a multi-functional approach. The inputs from sales and marketing, finance, and production should be considered. The final demand forecast is the consensus of all participating managers. You may also want to put up a Sales and Operations Planning group composed of representatives from the different departments that will be tasked to prepare the demand forecast.

Perfect competition is BASICALLY an economic model that helps to describe a hypothetical MARKET form. In this form the producer or the consumer does have any kind of market AUTHORITY in order to MAKE changes in prices.

Perfect competition is basically an economic model that helps to describe a hypothetical market form. In this form the producer or the consumer does have any kind of market authority in order to make changes in prices.

law of demand BASICALLY says when the price of a CERTAIN product GOES up,quantity demanded of that product goes down. when price goes down, quantity demanded goes up.

law of demand basically says when the price of a certain product goes up,quantity demanded of that product goes down. when price goes down, quantity demanded goes up.

MICRO ECONOMICS

• Micro economics is the study of small part of component of the whole economy.
• Micro economics is CALLED the price theory. It’s EXPLAINED its composition, or allocation of total production why more of something is produced than of others.
• In Micro study about individual consumer behavior or INDIVIDUALS firm or what happens in any PARTICULAR industry.
• If it be an analysis of price, we study about the price of a particular PRODUCER or of a particular factor of production.
• If it is demand we analysis demand of an individual or that of an industry.
• Here we study the income of an individual.

MACRO ECONOMICS

• Macro economics is the study and analysis of economic system as a whole.
• Macro economics is called income theory. It explains the level of total production and why the level rises and fall.
• In Macro we study how the aggregates and the averages of the economy as whole is determined and what causes fluctuation in them.
• In macro we study the general price level in country.
• In macro we study the aggregate demand of the entire country.
• Here we study the national income of the country.

MICRO ECONOMICS

MACRO ECONOMICS

The study of economics is DIVIDED into two parts.

• Micro Economics
• Macro Economics

Micro economics:

• The word micro means a millionth part. MICROECONOMICS is the study of the small part or component of the whole economy that we are analyzing. For example we may be studying an individual firm or in any particular industry. In Microeconomics we study of the price of the particular product or particular factor of the production.
•  theory STUDIES the BEHAVIOR of individual decision-making units such as consumers, recourse owners and business firms.

Macro Economics

• Macro economics is the study of behavior of the economy as a whole. It examines the overall level of NATIONS out put, employment, price and foreign trade.
• Macroeconomics is concerned with aggregate and average of entire economy.

The study of economics is divided into two parts.

Micro economics:

Macro Economics

The basic/fundamental ECONOMIC concepts are:

• Incremental concept
• Discounting concept
• TIME perspective
• Opportunity COST
• Equimarginal concept.

The basic/fundamental economic concepts are:

Study of economic theories, logic and methodology for solving the PRACTICAL problems of business. It is used to ANALYZE business problems for rational business decisions. It is also called as Business ECONOMICS or Economics for firms.
Relevance to engineers/Managers:
Engineering and Management involves a lot of strategic decision making situations. Managerial economics helps in rational decision making. The various economic CONCEPTS help a manger to take right decisions. The scope of managerial economics is:

• The selection of the production or the service to be produced.
• The choice of production methods and resource combinations.
• The choice of best price and quantity combinations.
• Promotional strategy and activities.
• The selection of location from which to produce.

Study of economic theories, logic and methodology for solving the practical problems of business. It is used to analyze business problems for rational business decisions. It is also called as Business Economics or Economics for firms.
Relevance to engineers/Managers:
Engineering and Management involves a lot of strategic decision making situations. Managerial economics helps in rational decision making. The various economic concepts help a manger to take right decisions. The scope of managerial economics is:

Economics is a social SCIENCE, which studies human behavior in relation to optimizing allocation of available resources to achieve the given ends.

The application of economic science is all pervasive. More specifically economic laws and tools of economic analysis are applied a great deal in the progress of business decision making. This has led to the emergence of a separate branch of study called Managerial Economics.

Managerial Economics is the study of economics theories, LOGIC and tools of economic analysis that are used in the process of business decision making. Economic theory and technique of economic analysis are applied to analyse business problems, evaluate business options and opportunities with a view to arriving at APPROPRIATE business decision. Managerial economic is THUS constituted as that part of economic KNOWLEDGE, logic, theories and analytical tools that are used for rational business decision making .

Economics is a social science, which studies human behavior in relation to optimizing allocation of available resources to achieve the given ends.

The application of economic science is all pervasive. More specifically economic laws and tools of economic analysis are applied a great deal in the progress of business decision making. This has led to the emergence of a separate branch of study called Managerial Economics.

Managerial Economics is the study of economics theories, logic and tools of economic analysis that are used in the process of business decision making. Economic theory and technique of economic analysis are applied to analyse business problems, evaluate business options and opportunities with a view to arriving at appropriate business decision. Managerial economic is thus constituted as that part of economic knowledge, logic, theories and analytical tools that are used for rational business decision making .