TITLE:
Is “Microeconomics” too Theoretical so That to Lead Managers, in General and Shipping Managers, in Particular, in Maximizing Company’s Profits?
AUTHORS:
Alexandros Markos Goulielmos
KEYWORDS:
The Competitive Industry & Its Main Characteristics, The Perfect Competitive Market, The Profit Maximization Objective, The Theory of the Firm & Its Shortcomings, The Shipping Industry & Its Exceptions, The “Managerial Economics” Are More Practical than “Microeconomics”?
JOURNAL NAME:
Modern Economy,
Vol.15 No.11,
November
28,
2024
ABSTRACT: The models of Perfect & Pure competition, and the growth theory of the firm and part of Managerial Economics are analytically presented. Our effort was to help managers to apply the theory, as well the marginal analysis, in managing an enterprise in general & a shipping company in particular (in the areas of production and/or pricing). We believe that marginal analysis is the proper tool for a manager to arrive at the optimal decisions. The model of competition was the one, however, to create serious economic…fluctuations & cycles! As a result win-win policies were recommended: perfect timing - economies of scale - economies of low age - free depreciation - administered free entry - adequate liquidity in the short run & a well-managed cost of finance…! Managers nowadays face complex decision problems, where the last 25 years an increase in competition everywhere witnessed! Managers need applied economics! This meant that Managers should be helped by economists to take only right decisions…