This document provides an overview of key concepts in maritime economics and transportation. It defines economics as the study of production, distribution, and consumption of goods and services. Microeconomics deals with firm operations like price determination, while macroeconomics comprises overall social and economic conditions. Other concepts discussed include opportunity cost, marginal analysis, demand and supply curves, costs and revenues, profits and losses, and different market structures like perfect competition, monopoly, and oligopoly.
This document provides an overview of key concepts in maritime economics and transportation. It defines economics as the study of production, distribution, and consumption of goods and services. Microeconomics deals with firm operations like price determination, while macroeconomics comprises overall social and economic conditions. Other concepts discussed include opportunity cost, marginal analysis, demand and supply curves, costs and revenues, profits and losses, and different market structures like perfect competition, monopoly, and oligopoly.
This document provides an overview of key concepts in maritime economics and transportation. It defines economics as the study of production, distribution, and consumption of goods and services. Microeconomics deals with firm operations like price determination, while macroeconomics comprises overall social and economic conditions. Other concepts discussed include opportunity cost, marginal analysis, demand and supply curves, costs and revenues, profits and losses, and different market structures like perfect competition, monopoly, and oligopoly.
This document provides an overview of key concepts in maritime economics and transportation. It defines economics as the study of production, distribution, and consumption of goods and services. Microeconomics deals with firm operations like price determination, while macroeconomics comprises overall social and economic conditions. Other concepts discussed include opportunity cost, marginal analysis, demand and supply curves, costs and revenues, profits and losses, and different market structures like perfect competition, monopoly, and oligopoly.
TRANSPORTATION ECON IS THE SOCIAL SCIENCE THAT STUDIES THE PRODUCTION, DISTRIBUTION & CONSUMPTION OF GOODS & SERVICES COMES FROM GREEK OIKOS (HOUSE) NOMOS (LAW) ROBBINS DEFINES ECON AS THE SCIENCE WHICH STUDIES HUMAN BEHAVIOUR AS A RELATIONSHIP BETWEEN ENDS & SCARCE MEANS WHICH HAVE ALTERNATIVE USES. MICRO & MACRO ECON MICRO ECON DEALS WITH THE OP OF THE FIRM IN ITS IMMEDIATE MARKET, EG. DETERMINATION OF PRICES, REVENUES, COSTS, EMPLOYMENT LEVELS. MACRO ECON COMPRISES THE GENERAL SOCIAL & ECON COND OF LARGER SYSTEM OF WHICH EACH FIRM FORMS A PART. TERMINOLOGIES RESOURCE ALLOCATION INVOLVING PURCHASING RAW MATERIALS, EMPLOYING LABOUR & UNDERTAKING INVESTMENT OPPORTUNITY COST THE LOST OF THE OPPORTUNITY TO PURSUE THE MOST ATTRACTIVE ALTERNATIVE GIVEN THE SAME TIME & RESOURCES DIMINISHING MARGINAL RETURN SITN WHEREBY AS WE APPLY MORE OF ONE INPUT TO ANOTHER INPUT, AFTER SOMETIME THE RESULTING INCREASE IN OUTPUT BECOMES SMALLER
MARGINAL ANALYSIS DETERMINES WHETHER THE INCREASE IN OUTPUT WILL PROVIDE ENOUGH EXTRA REVENUE TO COMPENSATE FOR THE EXTRA COST OF PRODUCTION WITH THE AIM OF FINDING THE OPTIMAL LEVEL OF PRODUCTION BUSINESS OBJECTIVE - TRADITIONAL OBJ IS PROFIT MAXIMIZATION. OTHER OBJ INCLUDE ACHIEVE PERSONAL GOAL, GROWTH TARGETS FOR THE COY & MAX SALES REVENUE/ VOLUME TIME DIMENSION SHORT RUN MEANS THE OP PERIOD OF BUSINESS WHERE AT LEAST ONE FACTOR OF PRODUCTION IS FIXED IN SUPPLY. LONG RUN IS THE PLANNING HORIZON OF THE FIRM WHERE ALL FACTORS OF PRODUCTION MAY BE VARIED ECON EFFICIENCY CONCERNED WITH USING SCARCE RESOURCES TO ACHIEVE STIPULATED ENDS. PRODUCTIVITY IS THE EFFICIENCY IN WHICH RESOURCES ARE USED TO PRODUCE OUTPUT RISK & UNCERTAINTY RISK OCCURS WHERE THERE IS AN ELEMENT OF INJURY OR LOSS. RISKS THAT ARE DIFFICULLT TO ESTIMATE ARE UNCERTAINTIES. EXTERNALITIES SOCIAL COSTS AND BENEFITS THAT ARE NOT REFLECTED IN THE ANNUAL ACCOUNTS OF FIRMS.
DISCOUNTING CONCERNED WITH THE FACT THAT COSTS & BENEFITS ARISING IN FUTURE YRS ARE WORTH LESS THAN COSTS & BENEFITS ARISING TODAY. DEMAND & SUPPLY DEMAND & SUPPLY REFERS TO PRICE & OUTPUT DETERMINATION IN A PERFECTLY COMPETITIVE MARKET DEMAND SHOWS THE QNTY BUYERS WOULD BE PREPARED TO PURCHASE AT EACH UNIT PRICE OF THE GOOD SUPPLY IS DIRECTLY PROPORTIONAL TO PRICE & QNTY SUPPLIED. THE HIGHER THE PRICE THE MORE PRODUCER WILL SUPPLY D & S CURVE
COST & REVENUE TOTAL COST OF PRODUCTION = FIXED COST + VARIABLE COST
REVENUE IS THE MONETARY VALUE OF PRODUCTS SOLD OR SERVICES RENDERED TO CUSTOMERS & RESULTS FM SALES, INTEREST, DIVIDEND, COMMISSION ETC. PROFIT & LOSS A BUSINESS HAS TO BE PROFITABLE TO SURVIVE P & L ACCOUNT COMPRISES : TRADING ACC DETAILING SALES REVENUE LESS PRODUCTION EXPENSES ACCOUNT FOR INCOME FM OTHER SOURCES ADMINISTRATIVE & OTHER EXPENSES/COSTS TYPES OF MARKET STRUCTURE PERFECT COMPETITION EG PASAR MALAM, TRAMP BUSINES MONOPOLY EG ELECTRICITY SUPPLY, LINER CONFERENCE OLIGOPOLY EG WIRELESS COMMS, LINER SHIPPING RECAP WHAT IS ECONOMY? EXPLAIN THE DIFFERENCES BETWEEN MICRO & MACRO ECON? WHAT ARE OPPORTUNITY COST, MARGINAL ANALYSIS, EXTERNALITIES, DISCOUNTING. DESCRIBE THE D & S CURVE DIFFERENTIATE THE 3 TYPES OF MARKET STRUCTURE