Business Economics.

Answer 1-
Introduction:
Various companies face a number of issues such as labor issues, price problems, and other
regulatory and regulatory issues. An entrepreneurial economy with its vast knowledge should
provide the basis for quantity of decision-making, policy making and business planning. The business
economist advises the entrepreneur on all economic and non-economic issues. Under the
experience of a business economist it helps to analyse various issues related to investment value,
sales growth, competitive conditions, financial position, labor relations, and government policies to
help protect the business while performing all operations. To make the business more efficient and
profitable the business economist must have a detailed knowledge and experience of the company's
environment.

The Business Economist is always in touch with all the latest economic developments and
environmental changes to inform managers. It plays an effective role in achieving a good return on
investment as it provides all the relevant information that helps to make the right plans and
strategies. A business economist has three key functions throughout the business entity: needs
analysis and forecasting, financial management, and profit management. Therefore, after discussing
the above factors every organization needs to have a Business Economist with all the knowledge and
economic basics to run a business smoothly and efficiently.

Concepts & Application:

Let's discuss how a Business Economist plays a Vital Role Business decision: -

A business economist is expected to play a positive and constructive role in the establishment of a
modern business. The business is heavily involved in decision-making and planning. Business
decision is an important part of management. Management and decision-making should be treated
as inseparable. A business decision is the choice of a particular course of action, based on some
circumstances, on two or more possible alternatives. Management Decision Issues (Internal and
External) Economic Theory (Purchase, Demand, Expense.

* The Role of the Business Economist:

Identifying various business problems: Various companies face a wide range of issues such as labor
issues, price problems, and other issues related to the regulation and boundaries of Government.
The primary function of a business economist is to identify the various problems that develop a
company, identify the various causes of these problems, analyze their effects on the company's
performance and ultimately suggest other effective and remedial measures to be taken by
management. Also, he should design various courses to maintain and improve existing systems.

* Provide a basis for multiple decision-making and planning:

An entrepreneurial economy with its vast knowledge should provide the basis for quantity of
decision-making, policy making and business planning. A business economist helps to study the in-
depth knowledge of the various, controllable and uncontrollable factors that influence the
performance of a business unit.
A business economist assists in planning, manufacturing and marketing planning, using the latest
organizational model and developing management strategies to increase productivity and reduce
corporate operating costs.

* Company Advice: A business economist advises an entrepreneur on all economic and non-
economic issues. Under the experience of a business economist, it helps to analyse various issues
related to investment value, sales growth, competitive conditions, financial position, labour
relations, and government policies to help protect the business while performing all operations.

Business economists should contact the ever-changing technological advances and propose the most
appropriate information technology to be adopted by the company. * Information about
environmental factors affecting the business: To make the business more efficient and profitable the
business economist must have detailed information and information about the company's
environment. Generally, environmental factors are divided into two parts:

1. Business Area (External Features)

2. Business Functions (Internal Features)

Business Environment helps to learn all the features and strengths and in addition to the individual
business management and management that will help keep the business stable. Business
performance helps to learn those characteristics and strengths, which work well within the company
and contribute to its performance which can reduce business costs.

Conclusion
Business economics research assists in the development of analytical skills which facilitates effective
planning and problem solving as well. Assists managers in decisions involving customers,
competitors, suppliers, and internal organizations. Therefore, It allows the company to make the
best use of the limited resources available and assists in achieving predetermined goals effectively
and efficiently. It is very helpful in decisions related to:

Price analysis

Production analysis

Risk analysis

Big budget

Demand determination.

It provides a solution to the problems that businesses face in analyzing the economy. Problem
identification and finding solutions are important factors in decision making. Business owners can
only make good decisions if their economic policies are in place.

It also provides information on productive and efficient services. Also, it helps to explore other
options to choose the best course of action. This action directly affects the output of the business
unit.
Answer 2-
Introduction
The law of variable Proportion is considered an important theory in Economics. It is called a rule that
if the value of one production element is increased while all other factors do not change, it will lead
to a decrease in the product output of that item. The law of variable proportion is also known as the
Law of Equality. When the dynamic factor becomes higher, it can lead to a negative value for a third
party product. The law of variable proportion can be understood as follows. If the dynamic factor
rises while all other factors are kept constant, the product price will initially increase at an increasing
rate, the next level will decrease with the decrease and eventually there will be a decrease in
production.

Concept and Application:

The law of the variable component

The law of variable dynamics states that as the value of a single element increases, while other
features are kept fixed, the by-product of that feature will eventually decrease. This means that up
to the use of a certain amount of variable variable, the side product output may increase and after a
certain phase, it begins to decrease. When the flexible element becomes too much, the side product
may be negative. Myth: Flexibility rating law works best under the following conditions:

Continuous Technical Status: First, the technical status is assumed to be given and not changed. If
there is a technological advancement, then the side product may rise instead of declining.

Fixed Value for Other Items: Second, there should be an input with a fixed value that does not
change. Only in this way can we change the balance of the material and know its effects on the
output. The law does not apply if all aspects are equally different.

Opportunities to Exchange Feature Features: Thirdly, the law is based on the possibility of changing
the values in which different factors can be combined to produce a product. The law does not apply
if the elements have to be used in fixed quantities to produce a product. The Three Sections of the
Flexible Standards Act:

These stages are shown in the following figure where fertility is measured in X-axis and output in Y-
axis.

Stage 1. The Rise of the Rising Return: In this phase, the amount of product increases with a growing
number reaching a certain point. This is because the efficiency of the fixed material increases as
additional units of flexibility are added to it. In the figure, from the base to point F, the slope of the
curve of the TP product increases i.e. the TP curve folds up to F, meaning that the MP for the side
product increases. F Corresponding to the vertical and the degree of flexibility of the product of the
work is great, after which it decreases. This phase is called the return growth phase because the
product rate of the variable factor grows throughout this phase. This phase ends at the point where
the central product curve reaches its highest point.

Stage 2. Depreciation Phase: At this stage, the total product continues to grow but with a decrease
in value until it reaches its peak H level where the second phase ends. At this stage, both the side
product and the general product function are reduced but good. This is because a fixed factor
becomes insufficient compared to the variable factor value. At the end of the second phase, that is,
in the area of M marginal product of labour is zero which corresponds to the high point H of the
total curve of the TP product. This category is important because the company will want to produce
on this list.

Stage 3. Adverse Return Phase: In Phase 3, the total output decreases, so the TP curve goes down. As
a result, the product side function is devoid of and the MP 12, 22 curve falls below the X-axis. At this
stage, the variable (personnel) is closely related to the fixed element.

Functional law of variable Proportion

The law of flexibility is applicable to all sectors of production, such as agriculture, industry, etc. This
rule applies to any field of production where some aspects are fixed and others are flexible. That is
why it is called the law of universal suffrage.

* Applying for Agriculture

* Industrial Application

Quantity Total Product Average Product Marginal Product

1 10 10 10
2 30 15 20
3 48 16 18
4 56 14 8
5 56 11.2 0
6 52 8.6 -4

Conclusion:
→ This rule is based on short-term production work.

→ The essence of the law is that if the number of variables increases and ends up unchanged, other
factors, eventually AP and MP will decrease.

→ This rule applies to all industries, but more than to Agriculture.

→ The rational producer chooses the second stage where the TP reaches the maximum level, the MP
becomes zero, not negative. and the AP decreases.

→ The third phase is not possible because the Member of Parliament is not eligible, so there is no
explanation for the payment of additional salaries to employees.
Answer 3a-
Introduction
Scale economy refers to the profit margin that a company receives when it increases its output.
Profit arises as a result of the negative relationship between each unit of fixed cost and the amount
produced. The larger the output output, the larger the fixed price per unit.

The scale economy also leads to a reduction in moderate to moderate costs (fixed average costs)
and an increase in productivity. This is due to efficiency and co-operation due to increased
production rate. Estimated economics can be acquired by a company at any stage of the production
process. In this case, production refers to the economic concept of production and involves all
activities related to the asset, excluding the end consumer. Therefore, an entity may decide to use
the measurement economy in its marketing phase by hiring a large number of marketing
professionals. An entity can apply the same in its earnings phase from a person to a machine
function.

Concept and application:

Economic Types of Scales

1. Internal Measurement Economy

This refers to the economics that are available only to the company. For example, a company may
have a patent on a mass production machine, allowing it to lower its production cost over other
firms in the industry.

2. Foreign Economy Scales

This refers to the level of economy that the industry enjoys. For example, suppose the government
wants to increase steel production. To do this, the government announces that all steel producers
who employ more than 10,000 workers will be given a 20% tax deduction. Therefore, companies
that employ less than 10,000 workers can reduce the average production costs by hiring more
workers. This is an example of a foreign-level economy - affecting every industry or economic sector.

Economic Impact of Scale on Production Costs

Reduce the fixed cost of each unit. As a result of rising production, constant costs are still being
distributed over the product more than ever before.

Reduce the variable cost of each unit. This is happening as the extended production scale increases
the efficiency of the production process.

The above graph lists the average long-term costs (LRAC) that a company faces against its output
level. When a company expands its output from Q to Q2, its median costs range from C to C1.
Therefore, the company can be said to be earning an economy of scale that reaches the output level
of Q2. Economically, an important result from the analysis of the production process is that the for-
profit firm always produces that level of production resulting in a small average cost per unit of
product.

Conclusion:
Economic Value of Scale:
A balanced economy is important because it can help provide businesses with a competitive
advantage in their industry. Companies will therefore try to recognize a level economy where
possible, just as investors will try to identify a rate economy when choosing an investment. One very
popular example of a measure economy is known as the network effect.

Answer 3b-
Introduction:
Introduction:

In economics, demand is defined as the value of a product or service, which the consumer is willing
to buy at various prices, over time. The demand curve is a graph, which shows the value the buyer
wants at different prices. The movement of the demand curve occurs due to a change in the price of
an asset while the change in the demand curve is due to a change in one or more factors other than
the value.

Definition of Shift in Demand Curve

A change in the demand curve reflects the necessary changes in each possible price, as a result of a
change in one non-price decision such as the price of related goods, income, taste and preferences,
and consumer expectations. Whenever there is a change in the demand curve, there is a shift in the
equation area again. The need curve changes on either side:

Rightward Shift: Represents an increase in demand, due to a positive change in non-price variables,
at the same price.

Leftward Shift: This is an indication of a decrease in demand where the price remains unchanged but
due to a negative change in decisions other than the price.

Definition of Movement in Demand Curve

Moving around the curve of demand indicates a change in both factors namely price and value, from
one point to another. Some items remain unchanged when there is a change in the price required
due to a change in the price of the product or service, leading to a turnaround curve. Movement
near a curve can be in any of the two directions:

• Upward Movement: Indicates a decrease in demand, in fact, a decrease in demand is seen due to
rising prices.

• Downward Movement: Indicates an increase in demand, i.e. the demand for a product or service
increases due to falling prices.

Significant Differences Between Movement and Change In Demand Curve

The points given below are noteworthy as the difference between movement and movement curve
is affected:

1. When the experience of an asset changes in both the required amount and the value, causing the
curve to move in a certain direction, it is known as the desired curve movement. On the other hand,
when, a commodity price remains unchanged but there is a change in the amount required due to
other factors, causing the curve to change in a certain direction, known as the demand curve.

2. The movement in the search curve, occurs near the curve, and, the change in the search curve
changes your position due to a change in the relationship of the original need.
3. Moving curve occurs when changes in the required amount are associated with a change in the
price of an asset. Conversely, a change in the demand curve occurs as a result of a change in price-
free decisions i.e. factors that determine a consumer’s need for better than the asset’s value such as
Income, Taste, Expectations, Population, Price of related goods, etc.

4. Moving around the quest curve is an indication of a complete change in the required value. In this
regard, a change in demand curve represents a change in the demand for goods.

5. The movement of the demand curve may be up or down, where the upward sign indicates the
need to tighten, while the downward indicates the growth of demand. In contrast, the curve you
want to change, either right or left. The shift to the right in the need curve indicates an increase in
demand, while the left turn indicates a decrease in demand.

Demand Curve movement.

The increase in the curve from A to C represents a reduction in demand due to the increase in
commodity prices from P to P2. A decrease in the curve from A to B means an increase in demand
due to a reduction in prices from P to P1.

Changes to Demand Curve

The price remains unchanged, the change to the right of the demand curve from D to D1 is called the
increase in demand, as demand increases from Q to Q1. The left shift of the demand curve from D to
D2 is known as the decrease in demand, as demand decreases from Q to Q2.

Conclusion:
So, with the whole discussion, you are probably correct, that the movement and movement of the
search curve are two different variations. The movement of a curve is caused by changes in the axis,
i.e. the price and the required value. On the other hand, curve change is due to factors other than
those on the axis, such as competitors' prices, preferences, expectations, and so on.