MARATHA VIDYA PRASARAK SAMAJ’S

K.R.T ARTS, B.H COMMERCE &

A.M SCIENCE, (KTHM) COLLEGE,
NASHIK
NAME : Pranav Prakash Pagar
CLASS : F.Y.B.COM DIV :E
SUBJECT : BUSINESS ECONOMICS
TOPIC : MEANING AND DEFINITION OF
BUSINESS ECONOMIC
SEMISTER : 1 Code :- 113
Sub Teacher :- Adhav S.P.
INTRODUCTION
Business economics is a field of
applied economics that studies the
financial, organizational, market-
related, and environmental issues
faced by corporations. Business
economics encompasses subjects such
as the concept of scarcity, product
factors, distribution, and consumption.
MEANING
Business Economics is the study of all
the factors which affect the working,
management, and prosperity of a
business or firm. The scope of Business
Economics is large as it deals with
both internal factors within the
business as well as factors that are
beyond the business owner's control.
DEFINITION

it may be that business economics

serves as a bridge between economic
theory and decision-making in the
context of business. According to Mc
Nair and Meriam, “Business economic
consists of the use of economic modes
of thought to analyse business
situations.”
 IMPORTANCE

Studying the scope of business

economics is important as it enables
business owners to comprehend how
the economy operates and how it affects
their operations. Business economists
make decisions on capital investments,
pricing tactics, and profit margins based
on their understanding of economic
theory.
ASSUMPTIONS

Society has unlimited wants and limited

resources (scarcity)
Due to scarcity, choices must be made.
Every choice has a cost (a trade-off).
Everyone's goal is to make choices that
maximize their satisfaction. ...
Everyone makes decisions by comparing
the marginal costs and marginal benefits of
every choice.
OBJECTIVES (MCQ)
 ________ Demand forecasting is related to
the bisuness conditions preveling in the
economy as a whole.
 ________is the base of marketing planning.
 _________ is the change in total revenue
irrespective of changes in price or due to
the effect of managerial decision on
revenue.
CONCLUSION

Business Economics is the branch of

economics that deals with the logic, ideas,
and analytical tools utilised to make
reasonable business decisions.