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 [...]
Managerial economics is the application of economic theory and methodology to decision making problems faced by public, private and not for profit institutions. Read this article to learn about the Definitions, Meaning, Concept, Scope and Theories of Managerial Economies. The study of managerial economics offers major benefits for students and practicing managers. It enables one to learn practical applications of [...]