User:kalindi jahagirdar

_NOTOC_ Today is : 14, February 2012, Time:15:48 India Mumbai University

Welcome to my Userpage नमस्कार wikieducator में आपका स्वागत Dr.Kalindi Jahagirdar.

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Dr. kalindi jahagirdar

Employer: Elphinstone college, Mumbai Occupation: lecturer (MES I), ( Economics) Nationality: Indian email

This user was certified a Wiki Apprentice Level 1 by Saritasanjay .

Contents [hide] 1 My Background 2 Education 3 About MU OER Project 4 About Wikieducator 5 About CEMCA 6 About Moodle 7 OER Work [edit] My Background

I am teaching subjects related to Economics in Elphinstone college, Mumbai since 2008. Prior to transfer to elphinstone college , I was working in Government college of Arts and Science Aurangabad from 1985 I have also worked for contact secion of Yashwantrao Chavan open University Graduate /Post graduate /M.PIL Studies in the past.I have taught Industrial Economics paper in PG sub center,Vivekanand college,Aurangabad,Dr B.A.Marathwada University. I have to my credit several papers that have been published in International/National Journals and Books'i am recognized P.G.Teacher of Marathwada university.

[edit] Education

M.A. (Economics), M.Phil (Economics), PhD (Economics),B.Ed,P.G. Diploma in Environmentalsc..Certificate course in Computer application.

[edit] About MU OER Project

OER (Open Education Resource) project of Mumbai University has been visualized by Dr. Rajan Welukar,Hon' Vice Chancellor University of Mumbai and is supported by Common Wealth of Learning Vancouver,Canada. This project is first of its kind in India in many ways. Through implementation of this project Mumbai University will become first university in India to create OER. Again through implementation of this project University of Mumbai will become first public institution in India to do so. Worldwide, universities like MIT Sloan - USA, Athabasca University -Canada, Empire State College New York etc have undertaken steps to develop OER. Under OER project, University of Mumbai is planning to put on open learning platform, the subject content of Economics and Soft Skills to begin with. To initiate our work on the project we have been supported and trained by Dr. Savithri Singh - Principal Acharya Narendra Dev College, Dr. Ravi Toteja and Dr. Neeti Misra (Faculty Acharya Narendra Dev College). The details of the workshop are available Here

[edit] About Wikieducator

To learn more about Wikieducator click Here

[edit] About CEMCA

To learn more about CEMCA (CEMCA is supporting Mumbai University OER initiative) click Here

[edit] About Moodle

An attempt is being made to use Moodle as a platform for creating OER along with the support that is available through Wikieducator. Moodle is an Open Source Course Management System (CMS), also known as a Learning Management System (LMS) or a Virtual Learning Environment (VLE). It has become very popular among educators around the world as a tool for creating online dynamic web sites for their students. The focus of the Moodle is to provide educators with the best tools to manage and promote learning.

To learn more about Moodle click Here The moodle link available Here

[edit] OER Work

Objectives of a Firm

1Maximisation of profit.

2 Maximization of sales revenue.
3 Maximization of growth rate
4 Maximization of managerial utility function.
5 Long run Survival and larger market share.

Work in progress, expect frequent changes. Help and feedback is welcome. See discussion page.

Kalindi - Link to my Sub Pages MU-OER_Project_Economics-_Index Format selected for OER list of the participants that attended the OER Workshop conducted between 16th October to 19th October 2011 OER Workshop Link

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MICROECONOMICS

Objectives of the Firm

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Learn to maximize profit,sales revenue,Larger market share and long run survival.

Introduction

Economists consider that objectives of business firms are various and vary accordance with the nature of market’ In economic literature prominent objectives of firm are following

1Maximisation of profit.

2 Maximization of sales revenue.
3 Maximization of growth rate
4 Maximization of managerial utility function.
5 Long run Survival and larger market share.

Conventional theory of firm assumes profit maximization is sole objective of business firm, how ever recent researcher on this issue reveal that modern corporations pursue multiple objectives. The main factor behind the multiplicity of the objectives is the separation of management from the ownership.

Basic definitions

Any costs incurred by a firm may be classed into two groups: Any costs incurred by a firm may be classed into two groups: fixed cost and variable cost *Fixed costs are incurred by the business at any level of output, including zero output. These may include equipment maintenance, rent, wages, and general upkeep.

Variable costs change with the level of output, increasing as more product is generated. Materials consumed during production often have the largest impact on this category.

Fixed cost and variable cost, combined, equal total cost

Revenue is the amount of money that a company receives from its normal business activities, usually from the sale of goods and services (as opposed to monies from security sales such as equity shares or debt issuances).
Profit is surplus of total revenue over total cost .ie TR-TC
Economic profit =Total revenue- Explicit cost –Implicit cost
The Normal Profit is the minimum income which entrepreneur must get in order to stay in industry or business. ’Normal profit is included in the total cost

fixed cost and variable cost

 Fixed costs are incurred by the business at any level of output, including zero output. These may include equipment maintenance, rent, wages, and general upkeep.

Variable costs change with the level of output, increasing as more product is generated. Materials consumed during production often have the largest impact on this category. Fixed cost and variable cost, combined, equal total cost

Revenue  is the amount of money that a company receives from its normal business activities, usually from the sale of goods and services (as opposed to monies from security sales such as equity shares or debt issuances).

Profit is surplus of total revenue over total cost .ie TR-TC Economic profit =Total revenue- Explicit cost –Implicit cost The Normal Profit is the minimum income which entrepreneur must get in order to stay in industry or business. ’Normal profit is included in the total cost

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To obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph. Finding the profit-maximizing output is as simple as finding the output at which profit reaches its maximum. That is represented by output Q in the diagram. There are two graphical ways of determining that Q is optimal. First, the profit curve is at its maximum at this point (A). Secondly, at the point (B) the tangent on the total cost curve (TC) is parallel to the total revenue curve (TR), meaning that the surplus of revenue net of costs (B,C) is at its greatest. Because total revenue minus total costs is equal to profit, the line segment C,B is equal in length to the line segment A,Q. Computing the price at which to sell the product requires knowledge of the firm's demand curve. The price at which quantity demanded equals profit-maximizing output is the optimum price to sell the product

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]Marginal revenue-marginal cost method

Profit maximization using the marginal approach An alternative argument says that for each unit sold, marginal profit (Mπ) equals marginal revenue (MR) minus marginal cost (MC). Then, if marginal revenue is greater than marginal cost, marginal profit is positive, and if marginal revenue is less than marginal cost, marginal profit is negative. When marginal revenue equals marginal cost, marginal profit is zero.[1] Since total profit increases when marginal profit is positive and total profit decreases when marginal profit is negative, it must reach a maximum where marginal profit is zero - or where marginal cost equals marginal revenue. If there are two points where this occurs, maximum profit is achieved where the producer has collected positive profit up until the intersection of MR and MC (where zero profit is collected), but would not continue to after, as opposed to vice versa, which represents a profit minimum.[1] In calculus terms, the correct intersection of MC and MR will occur when:[1]

The intersection of MR and MC is shown in the next diagram as point A. If the industry is perfectly competitive (as is assumed in the diagram), the firm faces a demand curve (D) that is identical to its Marginal revenue curve (MR), and this is a horizontal line at a price determined by industry supply and demand. Average total cost are represented by curve ATC. Total economic profit are represented by area P,A,B,C. The optimum quantity (Q) is the same as the optimum quantity (Q) in the first diagram.

Case Study

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Results

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                                                       Exercise

Example:1

Example
Q	P*	TR = P*Q	C	P=TR-C	MR=DTR	Mc=Dc
0	10	12
10	_
1	10	10	14 _-4	10	2
2	10	20	15	5	10	1
3	10	17	13	10	2
4	10	40	20	20	10	3
5	10	50	25	25	10	5
6	10	60	35	25	10	10
7	70	50	20	!0	15
8	10	80	81
10	31

These numbers are illustrative. Note that profit is maximized at output level 5 & 6.Price is equated to MC only at output level 6 ,however the second order condition is also satisfied since MC is increasing at q=6

Example:2

The market price a perfectly competitive firm in short run is Rs.25.Complete the following table.

Q	TR=PQ	STC	MC Profit	0		25
2		49
3		69			3	86
4		100
5		114
6		128
7		144
8		!63
9		185
10		212
11		246
12		300

References and Bibliography

User:Kvjahagirdar

MICROECONOMICS

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