[Edit this paragraph] The essence of management economics
Make a decision
The so-called decision-making is to choose the best scheme among many feasible schemes.
(1) Set goals: When making decisions, you must first make clear what kind of results you want to achieve.
(2) Propose alternatives: There are many ways to achieve a goal, and our task is to propose all possible solutions as much as possible.
(3) Choose the best scheme: This is a key step. We should compare all the schemes and choose the most feasible scheme, so that the implementation of this scheme is most likely to achieve the goal of getting the maximum output with less input.
2. The role of management economics in the decision-making process.
Management economics studies how to analyze and compare alternative schemes and find out the scheme that is most likely to achieve enterprise goals. In this decision-making process, the role of management economics is to provide relevant analytical tools and methods.
3. The essence of management economics
Management economics is a discipline combining microeconomics with management practice, which serves to solve three basic tasks of managers:
[Edit this paragraph] The main theory of management economics
1. Demand theory
Demand theory mainly analyzes the demand of products with different price levels, and the change rate of demand when the price, income and price of related commodities change. Its function is to support enterprise's price decision and market forecast, and to help enterprises determine the relationship between demand and price.
2. Production theory
Production theory mainly involves the choice of production organization form and the combination of production factors.
3. Cost theory
The content of cost theory is the nature and cost function of different costs, including the choice of scale economy and the choice of optimal output.
4. Market theory
Market theory analyzes what behaviors enterprises choose to achieve their expected goals under different market conditions.
[Edit this paragraph] Analysis methods commonly used in management economics
Equilibrium analysis method
Equilibrium refers to the combination of resources and behavior choice to get the maximum benefit. The behavior of enterprises is bound to be restricted by many factors, and these factors are often mutually restrictive. Equilibrium analysis method is to determine the proportional relationship of various factors under the condition of considering these constraints, so as to make it most beneficial to the development of enterprises. Set the price.
Formula: sales revenue = price × sales volume
◆ The price directly affects the sales revenue. If the price is too high, it will inevitably reduce the sales volume, and the sales revenue is not necessarily high; Similarly, in order to achieve more sales, enterprises must stimulate purchasing power at lower prices. If the price is too low, they can't achieve higher total sales. Therefore, when pricing, enterprises always have to face such a contradiction: raising prices may reduce sales, and expanding sales will inevitably reduce prices. How to make the enterprise profitable while maintaining a certain market share? This involves the problem of "balance". There must be a price level that can maximize the total sales revenue. Above or below this price, the profit of the enterprise will be reduced. Management economics provides a balanced analysis method for enterprises and helps them to set appropriate prices.
◆ Output (scale) decision. The scale of an enterprise will affect its production, sales and various costs, and then affect the relationship between input and output. Small-scale production enterprises may devote themselves to product quality and make profits at higher prices. And large enterprises win at lower cost and lower price. How to choose a scale suitable for its own development requires a balanced analysis method.
◆ Element combination. Enterprises need to invest various elements in production and operation. Some of these elements can be substituted for each other. Because the prices of various elements are different, the cost of combined elements is also different. The method of equilibrium analysis is also needed to choose which scheme.
The main application direction of equilibrium analysis method: setting price, determining output and determining factor combination.
Marginal analysis/marginal addition analysis
In economics, margin refers to the output change caused by unit input. Marginal analysis method has many applications in management economics. This paper mainly analyzes the influence of each additional unit of products on the total profit of enterprises under a certain output level. It can be illustrated by the following formula. Formula: Marginal value = △ f(x)/△ x, where x represents input and f(x) represents output, which is expressed as a function of x; Delta represents a variable. Assuming that the cardinal number x is variable, the output increment caused by the unit will change with each additional unit of input.
Two important concepts of marginal analysis: marginal cost: the cost increment caused by each additional unit of product; Marginal income: the income increment brought by each additional unit of product. When an enterprise judges the quality of an economic activity, it is not based on its total cost, but on the comparison between marginal revenue and marginal cost caused by it. If the former is greater than the latter, the activity is beneficial to the enterprise and vice versa.
Main application directions of marginal analysis method:
◆ Determine the scale. As mentioned above, scale directly affects the production efficiency of enterprises. If an enterprise wants to expand its scale, it must analyze the possible output increment caused by each increase in unit scale, which is marginal analysis. The scientific marginal analysis method can make the scale of the enterprise be determined in the most reasonable range. Formula: π=MR-MC, where π stands for marginal profit, MR stands for marginal revenue and MC stands for marginal cost.
◆ When π > 0, increase a unit of products, the increase in income is greater than the increase in cost, indicating that the enterprise has not reached the output scale that can obtain the maximum income. At this time, enterprises should expand production.
◆ When π
◆ When π=0, the enterprise reaches the optimal output scale.
◆ Price decision. What kind of influence will a unit have on its total income every time it increases (or decreases)? In fact, the marginal analysis method is also used, which can help enterprises to formulate competitive price strategies.
◆ Determine the reasonable factor input. When determining the amount of each factor that needs to be invested in production, we need to analyze what impact it will have on the total income when adding one factor to a unit. This is also marginal analysis.
◆ Product structure analysis. Most enterprises produce more than one product, and the proportion of each product is the product structure. Marginal analysis can be used to determine the proportional relationship between the output of each product-analyze the marginal benefit of each product. The so-called marginal benefit is the change of income caused by the production of a product and the increase of a unit's capital investment. If the incremental capital is invested in each product and the marginal income can be equal, then the product structure of this enterprise is reasonable; Otherwise, there must be some products worth expanding and bringing more benefits. The marginal analysis of product structure can make clear which products need to increase investment and which products need to reduce production scale.
The main application directions of marginal analysis method are: determining enterprise scale, formulating price strategy, determining factor input and analyzing product structure.
Mathematical model analysis method
In the development of economy and management, econometric analysis methods are applied more and more. Mathematical model is an econometric analysis tool, which is widely used in management economics. Mathematical model is essentially an abstraction of complex reality, which simplifies and visualizes problems, so as to accurately grasp the relationship between things, understand the essence of things and solve problems effectively. In practice, mathematical model is an extremely effective method in management decision-making and economic analysis. In addition, it is worth noting that mathematics is a very limited quantitative relationship, and there are many complex problems in the real economy, which can not be expressed by a simple mathematical model and need qualitative analysis methods.
Main application directions of mathematical models:
◆ Demand forecast. Before determining the production scale of a product, enterprises need to predict the market development potential, and can establish relevant mathematical models to show the quantitative changes of various factors affecting market development, and then analyze the impact of these changes on demand.
◆ Production analysis. The input of production factors, the choice of production organization form and the determination of product structure can all be analyzed and decided by establishing mathematical models.
◆ Cost decision. Cost is a factor that directly affects profits, and it is a focus that enterprises pay most attention to. When an enterprise changes its production and operation direction or expands its scale, what kind of cost level should be determined under the goal of maximizing profits can be scientifically analyzed by using mathematical models.
◆ Market analysis. Market is a basic concept of economics, which has many manifestations in practice. The establishment of mathematical model can analyze the scale, price and competitive strategy that enterprises may choose under different market conditions.
◆ Risk analysis. Risk analysis is the prediction of future state. A mathematical model can be created to show the magnitude of various related factors and their possible impact on investment returns.
The main application directions of mathematical models are demand forecasting, production analysis, cost decision-making, market analysis and risk analysis.