Agenda

● Why is economics important in business?

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 Why bring Economics in Business
• Any business idea needs to be tested for its commercial viability. Some of
the answers being sought by business persons are
Why would a product be demanded?
How much demand to expect at different prices?
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How will costs behave with changing quantities planned to be produced?

How to get the optimal input ratio?
How to price the product given different market structures?
What is impact of changing inflation on demand?
What is impact of changing interest rate on demand?
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 Why bring Economics in Business
• Solutions to each of these questions and many others can be found
by following principles of economics
• Economics is a study of optimal allocation of scarce resources to
meet the desired objectives – and that is what businesses do
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• Hence it is important that the business professionals

comprehensively understand the principles of economics
• Economics in a way is the language of business and thus every
business professional needs to understand the vocabulary to
effectively communicate with other businesses.

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sparshdessai@gmail.com
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Proprietary content.
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file is meant All Rightsuse
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by sparshdessai@gmail.com only. prohibited
Sharing or publishing the contents in part or full is liable for legal action.