Running Head: MANAGERIAL ECONOMICS
Managerial Economics & Decision Making Process
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Introduction
A business uses various economic theories, concepts, logics and tools for making an appropriate decision. These theories and concepts are included in the managerial economics, which is a branch of economics. These various economic theories and concepts are used or applied in the analysis of the various business problems and opportunities. The analysis helps to arrive at an appropriate decision for the management of the organization. A business is operated by integrating various economic theories with their respective practices. To make a decision for the new project or any other task related to the business, is an important step for the management. In the decision making process, the management selects one best alternative among various alternatives. The various problems regarding the production, sales are analyzed in the managerial economics (Baumol & Blinder, 2005).
Current Trends in Auto Industry
In the current environment, the demand for the automobiles is increasing continuously that marks a good position in the growing automobile industry.
Example of Markov Decision Process (MDP) transitio...
Decision Making Chart
economicsThe total growth rate for the demand is 5% in the global auto market. The growth rate in the global auto market also varies from region to region that is, the demand is stronger in some region than the global auto market (Automotive, 2009). The current environment of the automotive industry includes the activities that help to expand the business. Many organizations are involving in the merger and acquisition activities by the small car and car parts manufacturers. It is because the change in the preference of the people. The large car manufacturers are providing financial facility to the customers that are also a reason for the change in the consumer's demand. It is helping the large manufacturers to expand in the global market.
Analysis of Demand in...