what is indifference curve

INDIFFERENCE CURVE:

                                  A POPULAR ALTERNATIVE TO THE MARGINAL UTILITY ANALYSIS OF DEMAND IS THE INDIFFERENCE CURVE ANALYSIS . THIS IS BASED ON CONSUMER PREFERENCES AND BELIEVES THAT WE  CANNOT QUANTITATIVELY MEASURE HUMAN SATISFACTION IN MONETARY TERMS . THIS APPROACH ASSIGNS AN ORDER TO CONSUMER PREFERENCES RATHER THAN MEASURES THEM IN TERMS OF MONEY .

  

WHAT IT ACTUALLY MEANS:

                                    IT IS A CURVE THAT REPRESENTS ALL THE COMBINATIONS OF GOODS THAT GIVE THE SAME SATISFACTION TO THE CONSUMER.

SINCE ALL THE COMBINATIONS GIVE THE SAME AMOUNT OF SATISFACTION THE CONSUMER PREFERS THEM EQUALLY .

PROPERTIES OF AN INDIFFERENCE CURVE OR IC

 . AN  IC SLOPES DOWNWARDS TO THE RIGHT

                                                                         THIS SLOPES SIGNIFIES THAT WHEN THE QUANTITY OF ONE COMMODITY IN COMBINATION IS INCREASED ,THE AMOUNT OF THE OTHER COMMODITY REDUCES .

.  AN IC IS ALWAYS CONVEX TO THE ORIGIN

                                                                      THIS IS THE DIMINISHING MARGINAL  RATE OF SUBSTITUTION .THE RATE GIVES CONVEX SHAPE TO THE INDIFFERENCE  CURVE ,HOWEVER THERE ARE TWO EXTREME SCENARIOS:

1   TWO COMMODITIES ARE PERFECT SUBSTITUTES FOR EACH OTHER .IF IN CASE THE INDIFFERENCE CURVE IS STRAIGHT  LINE,WHERE MRS IS CONSTANT.

2  TWO GOODS ARE PERFECT COMPLEMENTARY GOODS .

                               

DEMAND ANALYSIS

DEMAND= DESIRE +ABILITY TO PAY+WILLINGNESS TO PAY

GOODS ARE DEMANDED BECAUSE THEY HAVE UTILITY.  DEMAND IS THAT QUANTITY OF A COMMODITY WHICH A PERSON IS READY TO BUY AT A PARTICULAR PRICE AND DURING SPECIFIC PERIOD OF TIME.

INDIVIDUAL DEMAND AND MARKET DEMAND

INDIVIDUAL DEMAND IS A DEMAND BY AN INDIVIDUAL .INDIVIDUAL DEMAND IS THE AMOUNT OF A COMMODITY PURCHASED BY AN INDIVIDUAL AT DIFFERENT PRICES .

 MARKET DEMAND IS AN AGGREGATE OF ALL QUANTITIES PURCHASED BY ALL BUYERS OF AN COMMODITY AT DIFFERENT PRICES DURING DIFFERENT PERIOD OF TIME.

 FACTORS AFFECTING DEMAND ARE:

1 PRICE

2 INCOME

3 POPULATIONS

4 TASTE  AND HABITS 

5 PRICE OF SUBSTITUTE AND COMPARABLY  GOODS 

6 DISTRIBUTION OF INCOME

7 EXPECTATIONS OF FUTURE PRICES 

8 ADVERTISEMENT

THUS LAW OF DEMAND EXPLAINS CHANGE IN THE BEHAVIOR OF CONSUMER DEMAND DUE TO VARIOUS CHANGES IN PRICE.

FORMS OF BUSINESS ORGANIZATIONS

A COMMERCIAL ORGANIZATION CAN BE DEFINED AS " THE FRAMEWORK  OR STRUCTURE OF EFFICIENTLY CONDUCTING INDUSTRIAL AND COMMERCIAL ACTIVITIES TO EARN PROFIT OR WITH A VIEW TO GAIN IT THROUGH PRODUCTION AND SUPPLY OF GOODS AND SERVICES"

PRIVATE SECTOR                                          PUBLIC SECTOR 

SOLE PROPRIETORSHIP                          DEPARTMENTAL UN

JOINT HINDU FAMILY                            DERTAKING

PARTNERSHIP FIRM                                  

JOINT STOCK COMPANIES                     STATUTORY CORPO

COOPERATIVE SOCIETIES                         RATIONS  

                                                                       GOVERNMENT 

                                                                            COMPANIES

SOLE PROPRIETORSHIP:

                                THE SOLE PROPRIETORSHIP IS AN INFORMAL TYPE OF BUSINESS OWNED BY ONE PERSON .SOMETIMES KNOWN FOR ONE MAN BUSINESS.

JOINT HINDU FAMILY BUSINESS:

                              WHEN A JOINT HINDU FAMILY CONDUCTS BUSINESS INHERITED BY IT AS PER HINDU LAW ,IT IS CALLED JOINT HINDU FAMILY BUSINESS.

PARTNERSHIP FIRM:

                               PARTNERSHIP FIRMS COMES TO EXISTENCE  BECAUSE OF LIMITATIONS AND FAILURE OF SOLE PROPRIETORSHIP MAINLY DUE TO LIMITED FINANCE AND MANAGERIAL SKILLS. 

CO OPERATIVE SOCIETY:

                                          A CO OPERATIVE ORGANIZATION  IS A VOLUNTARY  ORGANIZATION OF INDIVIDUAL FORMED IN ORDER TO ACHIEVE CERTAIN ECONOMIC OBJECTIVE . EACH FOR ALL AND ALL FOR EACH.

JOINT STOCK COMPANY:

                                       A JOINT STOCK COMPANY IS A VOLUNTARY ASSOCIATION OF INDIVIDUAL FOR PROFIT HAVING CAPITAL DIVIDED INTO TRANSFERABLE SHARES THE OWNERSHIP OR WHICH IS THE CONDITION ON MEMBERSHIP. 

 THIS IS ALL ABOUT HOW THE DIFFERENT FORMS OF BUSINESS WORKS IN THERE OWN WAYS AND RULES .

study of human behavior in organizations

HELLO ALL TODAY I AM WRITING A BLOG TO HIGHLIGHT SOME OF POINTS EXPLAINED ON FRIDAY REGARDING ORGANIZATIONAL BEHAVIOR AND ITS IMPORTANCE ON BUSINESS.

IT IS VERY IMPORTANT TO STUDY ORGANISATION BEHAVIOR BECAUSE IT PROVIDES AN UNDERSTANDING OF WHY PEOPLE BEHAVE AS THEY DO IN ORGANIZATIONS. IN ANY ORGANIZATION BEHAVIOR HAS TREMENDOUS NECESSITIES .

SOME OF THE IMPORTANCE OF ORGANIZATIONAL BEHAVIOR ARE:-

1.    HELPS IN UNDERSTANDING ORGANIZATION AND EMPOWERMENT IN BETTER WAY.

2.    HELPS IN MOTIVATING EMPLOYEES

3.    HELPS IN IMPROVING INDUSTRIAL/ LABOR RELATIONS

4.    HELPS IN EFFECTIVE UTILIZATION OF HUMAN RESOURCES .

THERE ARE DIFFERENT  GOALS OF ORGANIZATIONAL BEHAVIOR:

1.    TO DESCRIBE HOW PEOPLE BEHAVE UNDER VARIOUS CONVICT.

2.    TO UNDERSTAND WHY PEOPLE BEHAVE AS THEY DO.

3.    TO PREDICT FUTURE BEHAVIOR OF EMPLOYEES IS ANOTHER GOAL.

4.    TO CONTROL THE FINAL GOAL OF ORGANIZATIONAL BEHAVIOR IS TO CONTROL AND DEVELOP A FRIENDLY ATMOSPHERE FOR ORGANIZATION.

WE ALSO GOT TO KNOW ABOUT THE PRINCIPLES OF MANAGEMENT:

1.    DIVISION OF WORK

2.    AUTHORITY AND RESPONSIBILITY

3.    DISCIPLINE

4.    UNITY OF DIRECTION

5.    UNITY OF COMMAND

6.    INDIVIDUAL INTEREST

7.    REMUNERATION OF PEOPLE

8.    DEGREE OF CENTRALIZATION

9.    SCALAR CHAIN

10.                      ORDER

11.                      EQUITY

12.                      ESPRIT DE CORPS.

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