THE ECONOMICS OF PROFITABILITY

abstract. THE ECONOMICS OF PROFITABILITY. Chapter 6.

Table of contents. 01. The role of economics. 02.

In a brief History of our Philippine economy/ Industry:.

In the year, 1950's and 1960's it dominantly relies on the prevalence of a seller's market in this decades that it is even possible to register high profit rates, despite having a low productivity of inputs. On the fact that our people are no concerned to our productivity specifically labor and capital. 1970's and 1980's the realization to see productivity portrays a major role to our country rises since that labor is no longer a free good service due to the rising demand of hands to produce raw materials and the creating of machinery. In addition it is being acknowledged to be the tempestuous decades due to its rigid demand to works..

21st Century and now the competition between neighbouring countries arises due to the exportation of goods and services that improves our economy but as a Filipino well we tend to be just good on lip service which cannot hook us to be competitive to others so these styles will have to be avoided and tend to focus on planning acting and critical thinking especially for those person who control or occupy our management position to have a good outcome and able to cope up with other neighbouring countries.

01. The role of economics.

Economics plays a role in our everyday life. Studying economics enables us to understand past, future and current models, and apply it to our system whether we choose what the best that fit to it also it is teaches us what specific role that thing is. On the concept of "productivity" "efficiency" and "profitability" well it correlates to each other but they have different meanings accordingly so this concepts shows us that being so much specific will deliver us a good and efficient understanding of what we are trying to portray. But dominantly we tend to misuses these terms that causes troubles to us so having these learned will enable us to be more efficient..

02. Avoiding the tower of Babel.

In managerial economics, managers and their subordinates speak different languages and there are many common used terms. There are managers who do not bother to distinguish which terms they should use, which can cause confusion to their subordinates or co-manager. This situation shows the Tower of Babel..

03. Efficiency vs. effectiveness.

Efficiency. means doing things “right”—whether that means moving faster, getting work done with fewer resources, accomplishing big projects with a smaller budget, or otherwise doing “more” with “less..

Efficient but not effective:. The team builds a deck and demo in just three days. But once they present, the potential client is dissatisfied because the content focused on the wrong things. Ultimately, the presentation materials didn’t speak to their specific company needs. They decide to go in a different direction..