Core contribution of the behavioural approach, Managerial Economics

Assignment Help:

If a firm's organisational characteristics have not any implications for its behaviour or more possibly have implications that can be taken into account without adopting a behaviourist approach, a holistic concept of the firm can be retained. Sothough organisational characteristics such as the relationship between managers and shareholders may need to be analysed in order to determine what firm's objective is, once this has been done, firm can be viewed as aunit acting consistently in pursuit of a clearly specified objective. In the same way, internal administrative processes can be observed as a separate area of study, in the same way that technical processes of marketing or production are regarded as separate areas of study and can be abstracted from theory of the firm. Of course, study of internal administration may lead to conclusions with relevance for a theory of the firm, like there exists an absolute size or a rate of growth above that the administrative efficiency of the firm declines. Once established then these conclusions can be regarded as part of initial set of assumptions needed for the construction of any theory.

The core contribution of the behavioural approach for development of an understanding of business behaviour is to highlight the role played by uncertainty (not risk), the view that behaviour of the firm can best be understood as viewing it like a continuing process and rejection of micro equilibrium.


Related Discussions:- Core contribution of the behavioural approach

Short run equilibrium of a firm under monopoly, The short run equilibrium o...

The short run equilibrium of monopolist is displayed below in figure. Figure: Abnormal Profit under Monopoly AR is the average revenue curve, MR is marginal revenue cu

Estimate the demand function, You're standing at three light switches at th...

You're standing at three light switches at the bottom of stairs to the attic. Each one corresponds to one of three lights in the attic, but you cannot see the lights from where you

Gap between theory and practice in managerial economics, The gap between th...

The gap between theory and practise and the role of managerial economics: We have noted above that application of theories to the process of business decision making contributes a

cournot equilibrium, Air Canada and KLM compete for customers on flights a...

Air Canada and KLM compete for customers on flights among Amsterdam and Toronto. The total number of passengers (Q) flown by these two firms is the sum of passengers who fly KLM, Q

What wage will the firm pay, A firm faces a perfectly elastic demand for it...

A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output. The firm, Though, faces an upward-sloped labor supply curve of          E= 20w-120 W

Economic Model of a Company, I can''t figure out the economic model of a co...

I can''t figure out the economic model of a company that I''m supposed to write a report about. The company is a tier 2 supplier, and over the years has bought out several subsidia

Gdp growth, Discuss how the nation's present economic situation may affect ...

Discuss how the nation's present economic situation may affect your business in the next year (your market is the entire US economy).  Contain the following in your analysis. a)

Fixed costs - short run cost function, Fixed costs are those that are indep...

Fixed costs are those that are independent of output. They should be paid even if firm produces no output. They wouldn't change even if output changes. They remain fixed whether ou

Accomplish the desired outcome, Suppose that the present level of income in...

Suppose that the present level of income in the economy is $700 billion. It is determined that in order to decrease the unemployment rate to the desired level, it will be essential

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd