BHAGVAN MAHAVIR UNIVERSITY

MBA Sem-1
Managerial Economics
UNIT-1
1. MEANING OF MANAGERIAL ECONOMICS

2. NATURE OF MANAGERIAL ECONOMICS

3. SCOPE OF MANAGERIAL ECONOMICS

4. SIGNIFICANCE OF MANAGERIAL ECONOMICS

5. USES OF MANAGERIAL ECONOMICS

6. ROLE AND RESPONSIBILITIES OF MANAGERIAL ECONOMIST

7. THE MARKET FORCES OF SUPPLY AND DEMAND

8. ELASTICITY AND ITS APPLICATIONS

9. PRODUCTION FUNCTIONS IN THE SHORT AND LONG RUN

10. COST FUNCTIONS

11. DETERMINANTS OF COSTS

12. COST FORECASTING

13. SHORT RUN AND LONG RUN COSTS

14. TYPE OF COSTS

15. ANALYSIS OF RISK AND UNCERTAINTY

 MEANING AND DEFINITIONS OF MANAGERIAL ECONOMICS

Businesses need to make crucial decisions on a day-to-day basis.

These decisions can be about an investment opportunity, a new product, a
new competitor, or a company’s direction. For such important decisions,
businesses need to rely on experts. These experts come from the
background of Managerial Economics. They are the experts who provide
monetary value to the different opportunities and then urge the company to
proceed.

Managerial economics is a stream of management studies that

emphasizes primarily on solving business problems and decision-making
by applying the theories and principles of microeconomics and
macroeconomics. It is a specialized stream dealing with an organization’s
internal issues using various economic tools. Economics is an
indispensable part of any business. This single concept derives all the
business assumptions, forecasting, and investments.

A close interrelationship between management and economics had

led to the development of managerial economics. Economic analysis is
required for various concepts such as demand, profit, cost, and
competition. In this way, managerial economics is considered as
economics applied to “problems of choice’’ or alternatives and allocation of
scarce resources by the firms.

Managerial economics is a discipline that combines economic theory

with managerial practice. It helps in covering the gap between the
problems of logic and the problems of policy. The subject offers powerful
tools and techniques for managerial policy making. Economics provide
various tools, techniques and, methods for management purpose that is
why it is called as managerial economics.

In short,
Managerial Economics = Economic Theory + Business Practices
Means, managerial economics means application of economic theory
to the problem of management.

DEFINITIONS:

 D.C. Hauge describes managerial economics as “a fundamental

academic subject which seeks to understand and analyses the
problems of business decision making”

 Spencer and Siegelman have defined the subject as “the integration

of economic theory with business practice for the purpose of
facilitating decision making and forward planning by management.”

 In the words of Me Nair and Meriam, “Managerial Economics

consists of the use of economic modes of thought to analyses
business situations.”
 NATURE OF MANAGERIAL ECONOMICS

You need to know about the various characteristics of managerial

economics to get more knowledge about it. Let’s learn about the nature of
managerial economics. The following are the points that show the nature
of managerial economics.
1. ART AND SCIENCE:

Management theory requires a lot of critical and logical thinking and

analytical skills to make decisions or solve problems. Many economists
also find it a source of research, saying it includes applying different
economic concepts, techniques, and methods to solve business problems.

2. MICROECONOMICS

Managers typically deal with the problems relevant to a single entity

rather than the economy as a whole. It is therefore considered an integral
part of microeconomics.

3. USES OF MACRO ECONOMICS

A corporation works in an external world, i.e., it serves the consumer,

which is an important part of the economy. For this purpose, managers
must evaluate the various macroeconomic factors such as market
dynamics, economic changes, government policies, etc., and their effect on
the company.

4. MULTIDISCIPLINARY

Managerial economics uses many tools and principles that belong to

different disciplines, such as accounting, finance, statistics, mathematics,
production, operational research, human resources, marketing, etc.
5. PRESCRIPTIVE OR NORMATIVE DISCIPLINE

By introducing corrective steps managerial economics aims at

achieving the objective and solves specific issues or problems.

6. MANAGEMENT ORIENTED

This serves as an instrument in managers’ hands to deal effectively

with business-related problems and uncertainties. This also allows for
setting priorities, formulating policies, and making successful decisions.

7. PRAGMATIC

The solution to day-to-day business challenges is realistic and

rational. Different individuals take different views of the principles of
managerial economics. Others may concentrate more on customer service
and prioritize efficient production.
 SCOPE OF MANAGERIAL ECONOMICS

The scope of business economics is usually restricted to the

understanding of the business behavior and problems of a firm at a micro
level in the context of the prevailing business environment. The scope of
managerial economics includes following subjects:

1. Theory of demand

2. Theory of production

3. Theory of exchange or price theory

4. Theory of profit

5. Theory of capital and investment

6. Environmental issues
1. THEORY OF DEMAND

According to Spencer and Siegelman, “A business firm is an economic

organization which transforms productivity sources into goods that are to
be sold in a market.”

a. Demand analysis: Analysis of demand is undertaken to forecast demand,

which is a fundamental component in managerial decision-making.
Demand forecasting is of 8 Managerial Economics importance because an
estimate of future sales is a primer for preparing production schedule and
employing productive resources. Demand analysis helps the management
in identifying factors that influence the demand for the products of a firm.
Thus, demand analysis and forecasting is of prime importance to business
planning.

b. Demand theory: Demand theory relates to the study of consumer

behavior. It addresses questions such as what incites a consumer to buy a
particular product, at what price does he/she purchase the product, why do
consumers cease consuming a commodity and so on. It also seeks to
determine the effect of the income, habit and taste of consumers on the
demand of a commodity and analyses other factors that influence this
demand.

2. THEORY OF PRODUCTION:

Production and cost analysis is central for the unhampered functioning of

the production process and for project planning. Production is an economic
activity that makes goods available for consumption. Production is also
defined as a sum of all economic activities besides consumption. It is the
process of creating goods or services by utilizing various available
resources. Achieving a certain profit requires the production of a certain
amount of goods. To obtain such production levels, some costs have to be
incurred. At this point, the management is faced with the task of
determining an optimal level of production where the average cost of
production would be minimum. Production function shows the relationship
between the quantity of a good/service produced (output) and the factors
or resources (inputs) used. The inputs employed for producing these goods
and services are called factors of production.

3. THEORY OF EXCHANGE OR PRICE THEORY:

Theory of Exchange is popularly known as Price Theory. Price

determination under different types of market conditions comes under the
wingspan of this theory. It helps in determining the level to which an
advertisement can be used to boost market sales of a firm. Price theory is
pivotal in determining the price policy of a firm. Pricing is an important area
in managerial economics. The accuracy of pricing decisions is vital in
shaping the success of an enterprise. Price policy impresses upon the
demand of products. It involves the determination of prices under different
market conditions, pricing methods, pricing policies, differential pricing,
product line pricing and price forecasting

4. THEORY OF PROFIT

Every business and industrial enterprise aims at maximizing profit. Profit is

the difference between total revenue and total economic cost. Profitability
of an organization is greatly influenced by the following factors like
Demand of the product, Prices of the factors of production, Nature and
degree of competition in the market, Price behavior under changing
conditions. Hence, profit planning and profit management are important
requisites for improving profit earning efficiency of the firm. Profit
management involves the use of most efficient technique for predicting the
future. The probability of risks should be minimized as far as possible.

5. THEORY OF CAPITAL AND INVESTMENT:

Theory of Capital and Investment evinces the many important issues like
Selection of a viable investment project, efficient allocation of capital,
Assessment of the efficiency of capital, minimizing the possibility of under
capitalization or overcapitalization. Capital is the building block of a
business. Like other factors of production, it is also scarce and expensive.
It should be allocated in most efficient manner.

6. ENVIRONMENTAL ISSUES:

Managerial economics also encompasses some aspects of

macroeconomics. These relate to social and political environment in which
a business and industrial firm has to operate. This is governed by the
factors like The type of economic system of the country, Business cycles,
Industrial policy of the country, Trade and fiscal policy of the country,
Taxation policy of the country, Price and labor policy, “General trends in
economy concerning the production, employment, income, prices, saving
and investment etc.”, General trends in the working of financial institutions
in the country, General trends in foreign trade of the country, Social factors
like value system of the society, “General attitude and significance of social
organizations like trade unions, producers’ unions and consumers’
cooperative societies etc.”, Social structure and class character of various
social groups, Political system of the country The management of a firm
cannot exercise control over these factors. Therefore, it should fashion the
plans, policies and programs of the firm according to these factors in order
to offset their adverse effects on the firm.

SIGNIFICANCE OF MANAGERIAL ECONOMICS

1. BUSINESS PLANNING

Managerial economics contributes to business organizations in

formulating plans and better decisions. It helps in analyzing the demand
and forecasting future business activities. It is managerial economics
importance.

2. COST CONTROL

Cost controlling the price is another essential role played by managerial

economics and it’s important for every business. It properly analyses and
decides production activities and therefore the cost related to them.
Managerial economics makes sure that all resources are efficiently utilized
which reduces the general cost.

3. PRICE DETERMINATION

Setting the proper price is one of the key decisions to be taken by every
business. It is managerial economics importance. Managerial economics
distribute all relevant data to managers for deciding the proper prices for
products.
4. BUSINESS PREDICTION

Managerial economics through the appliance of varied economic tools and

theories helps managers in predicting various future uncertainties. Timely
detection of uncertainties helps in taking all possible steps to avoid them.

5. PROFIT PLANNING AND CONTROL

Managerial economics allows for planning and managing the profit of the
business. It makes an accurate estimate of all costs and revenue which
helps in earning the specified profit.

6. INVENTORY MANAGEMENT

Proper management of inventory may be a must for ensuring the continuity

of business activities. It helps in analyzing the demand and the production
activities performed. Managers can arrange and make sure that the right
quantity of inventory is usually available within the business.

7. MANAGES CAPITAL

Managerial economics helps in taking all decisions concerning the firm’s

capital. It properly analyses investment avenues before investing any
amount into them to make sure the profitability of an investment. It is the
main importance of managerial economics in a business or as an
organization
 USES OF MANAGERIAL ECONOMICS

The Uses of managerial economics are in the following areas:

i) Demand Function and Estimation

ii) Demand Elasticity

iii) Demand Forecasting

iv) Production Function and Laws

v) Cost Analysis

vi) Pricing and Output Determination in different market structures.

vii) Pricing Policies and Practices in Real Business

viii) Profit Planning and Management

ix) Project-Planning and Management

x) Capital Budgeting and Management

 ROLE AND RESPONSIBILITIES OF MANAGERIAL ECONOMIST

1. STUDIES BUSINESS ENVIRONMENT:

The managerial economist is responsible for analyzing the environment in
which business operates. Proper study of all external factors that affect the
functioning of organization is must for proper functioning. He studies
various factors like growth of national income, competition level, price
trends, phase of the business cycle and economy and updates the
management regarding it from time to time.

2. ANALYSES OPERATIONS OF BUSINESS:

He analyses the internal operation of business and helps management in
making better decisions in regard to internal workings. Managerial
economist through his analytical and forecasting skills provides advice to
managers for formulating policies regarding internal operations of the
business.

3. DEMAND FORECASTING AND ESTIMATION :

Proper estimation and forecasting of future trends helps the business in
achieving desired profitability and growth. Managerial economist through
proper study of all internal and external forces makes successful forecasting
of future uncertainties or trends.
4. PRODUCTION PLANNING:
Managerial economist is responsible for scheduling all production
activities of business. He evaluates the capital budgets of organizations
and accordingly helps in deciding timing and locating of various actions.

5. ECONOMIC INTELLIGENCE:
He provides economic intelligence services by communicating all
economic information to management. Managerial economist keeps
management always updated of all prevailing economic trends so that they
can confidently talk in seminars and conferences.

6. PERFORMING INVESTMENT ANALYSIS:

A managerial economist analyzes various investment avenues and
chooses the most appropriate one. He studies and discovers new possible
fields of business for earning better returns.

7. FOCUSES ON EARNING REASONABLE PROFIT:

He assists management in earning a reasonable rate of profit on capital
employed in the business. Managerial economist monitors activities of
organizations to check whether all operations are running efficiently as per
the plans and policies.

8. MAINTAINING BETTER RELATIONS:

A managerial economist maintains better relations with all internal and
external individuals connected with the business. It is his duty to develop a
peaceful and cooperative environment within the organization and aims to
reduce any opposition taking place.

THE MARKET FORCES OF SUPPLY AND DEMAND

The terms supply and demand refer to the behavior of people as they
interact with one another in competitive markets. Before discussing how
buyers and sellers behave, let's first consider more fully what we mean by
the terms market and competition.

WHAT IS A MARKET?

Market a group of buyers and sellers of a particular good or service

competitive market a market in which there are many buyers and many
sellers so that each has a negligible impact on the market price. The buyers
as a group determine the demand for the product, and the sellers as a
group determine the supply of the product. Markets take many forms.
Sometimes markets are highly organized, such as the markets for many
agricultural commodities. In these markets, buyers and sellers meet at a
specific time and place, where an auctioneer helps set prices and arrange
sales.

More often, markets are less organized. For example, consider the
market for ice man in a particular town. Buyers of ice cream do not meet
together at any one time. The sellers of ice cream are in different locations
and offer somewhat different products. There is no auctioneer calling out
the price of ice cream. Each seller posts a price for an ice-cream cone, and
each buyer decides how much ice man to buy at each store. Nonetheless,
these consumers and producers of ice cream are closely connected. The
ice-cream buyers are choosing from the various ice-cream sellers to satisfy
their hunger, and the ice-cream sellers are all trying to appeal to the same
ice-cream buyers to make their businesses successful. Even though it is
not organized, the group of ice-cream buyers and ice-cream sellers forms a
market.

WHAT IS COMPETITION?

The market for ice cream, like most markets in the economy, is highly
competitive. Each buyer knows that there are several sellers from which to
choose, and each seller is aware that his product is similar to that offered
by other sellers. As a result, the price of ice cream and the quantity of ice
cream sold are not determined by any single buyer or seller. Rather, price
and quantity are determined by all buyers and sellers as they interact in the
marketplace.

Economists use the term competitive market to describe a market in

which there are so many buyers and so many sellers that each has a
negligible impact on the market price. Each seller of ice cream has limited
control over the price because other sellers are offering similar products. A
seller has little reason to charge less than the going price, and if he charges
more, buyers will make their purchases elsewhere. Similarly, no single
buyer of ice cream can influence the price of ice cream because each buyer
purchases only a small amount.

In this chapter, we assume that markets are perfectly competitive. To

reach this highest form of competition, a market must have two
characteristics: (I) the goods offered for sale are all exactly the same, and
(2) the buyers and sellers are so numerous that no single buyer or seller
has any influence over the market price. Because buyers and sellers in
perfectly competitive markets must accept the price the market determines,
they are said to be price takers. At the market price, buyers can buy all they
want, and sellers can sell all they want.

There are some markets in which the assumption of perfect

competition applies perfectly. In the wheat market, for example, there are
thousands of farmers who sell wheat and millions of consumers who use
wheat and wheat products. Because no single buyer or seller can influence
the price of wheat, each takes the price as given.

Not all goods and services, however, are sold in perfectly competitive
markets. Some markets have only one seller, and this seller sets the price.
Such a seller is called a monopoly. Your local cable television company, for
instance, may be a monopoly. Residents of your town probably have only
one Cable Company from which to buy this service. Some markets
(covered in the study of microeconomics) fall between the extremes of
perfect competition and monopoly.

Despite the diversity of market types we find in the world, assuming

perfect competition is a useful simplification and, therefore, a natural place
to start. Perfectly competitive markets are the easiest to analyze because
everyone participating in the market takes the price as given by market
conditions. Moreover, because some degree of competition is present in
most markets, many of the lessons that we learn by studying supply and
demand under perfect competition apply in more complicated markets as
well.

DEMAND

Demand refers to how much (quantity) of a product or service is

desired by
buyers. The quantity demanded is the amount of a product people are
willing to buy at a certain price; the relationship between price and quantity
demanded is known as the demand relationship. Supply represents how
much the market can offer. The law of supply and demand is the theory
explaining the interaction between the supply of a resource and the
demand for that resource. The law of supply and demand defines the effect
the availability of a particular product and the desire (or demand) for that
product has on price. Generally, a low supply and a high demand increases
price, and in contrast, the greater the supply and the lower the demand, the
lower the price tends to fall.
The demand refers to the amount of which will be bought per unit of
time at a particular price. Demand is the amount of a particular economic
good or service that a consumer or group of consumers will want to
purchase at a given price.

Demand = Desire + Ability to pay + Willingness to pay.

 The demand curve is usually downward sloping, since consumers will
want to buy more as price decreases. Demand for a good or service is
determined by many different factors other than price, such as the price of
substitute goods and complementary goods. In extreme cases, demand
may be completely unrelated to
Price, or nearly infinite at a given price. Along with supply, demand is one of
the
two key determinants of the market price.

DETERMINANTS OF DEMAND:

A. Determinants of Individual Demand

1. Price: Price is the basic factor. A consumer usually decides to buy with
Consideration of price. More quantity is demanded at low prices and less is
purchased at high prices.

2. Income: A buyer’s income determines his/her purchasing capacity.

Income is, therefore, an important determinant of demand. Obviously, with
the increase in income one can buy more goods. Rich consumers usually
demand more and more goods than poor customers. Demand for luxuries
and expensive goods are related to income.

4. Tastes, habits and preferences: Demand for many goods depends on

the person’s tastes, habits and preferences. Demand for several products
like ice-cream, chocolates, beverages and so on depends on individual’s
tastes. Demand for tea, betel, cigarettes, tobacco, etc. is a matter of habits.
4. People with different tastes and habits have different preferences for
different goods: A strict vegetarian will have no demand for meat at any
price, whereas a non-vegetarian who has liking for chicken may demand it
even at a high price. Similar is the case with demand for cigarettes by non-
smokers and smokers.

5. Relative prices of other goods substitute and complementary products:

How much the consumer would like to buy of a given commodity, however,
also depends on the relative prices of other related goods such as
substitute or complementary goods to a commodity.

6. Consumer’s expectation: A consumer’s expectation about the future

changes in the prices of a given commodity also may affect its demand.
When he expects its prices to fall in future, he will tend to buy less at the
present prevailing low price. Similarly, if he expects its price to rise in future,
he will tend to buy more at present.

B. Determinants of Market Demand

1. Scale of preferences: The market demand for a product is greatly

influenced by the scale of preferences of the buyers in general. For
example, when a large section of population shifts its preferences from
vegetarian foods to non-vegetarian foods, the demand for the former will
tend to decrease and that for the latter will increase.
2. Distribution of income and wealth in the community: If there is equal
distribution of income and wealth, the market demand for many products
of common consumption tends to be greater than in the case of unequal
distribution.

3. Price of the product: At a low market price, market demand for the
product tends to be high and vice versa.

4. General standards of living and spending habits of the people: When

people in general adopt a high standard of living and are ready to spend
more, demand for many comforts and luxury items will tend to be higher
than otherwise.

5. Number of buyers in the market and the growth of population: The size
of market demand for a product obviously depends on the number of
buyers in the market. A large number of buyers will usually constitute a
large demand and vice versa. As such, growth of population over a period
of time tends to imply a rising demand for essential goods and services in
general.

6. Age structure and sex ratio of the population: Age structure of

population determines market demand for many products in a relative
sense. If the population pyramid of a country is broad based with a large
proportion of juvenile population, then the market demand for toys, school
bags etc., i.e., goods and services required by children will be much higher
than the market demand for goods needed by the elderly people. Similarly,
sex-ratio has its impact on demand for many goods.

7. Future expectations: If buyers in general expect that prices of a

commodity will rise in future, then present market demand would be more
as most of them would like to hoard the commodity. The reverse happens
if a fall in the future prices are expected.

DEMAND FUNCTION

In demand analysis, one should recognize that at any point in time the
quantity of a given product that will be purchased by the consumers
depends on a number of key variables or determinants. In technical jargon,
it is stated in terms of demand function for the given product.
A demand function in mathematical terms expresses the functional
relationship
between the demand for the product and its various determining variables.
Dx = f (Px, Ps, Pc, Yd, T, A, N, u)
Where,
The ‘own price’ of the product itself (P)
The price of the substitute and complementary goods (Ps or Pc)
The level of disposable income (Yd) with the buyers (i.e., income left after
direct taxes)
Change in the buyers’ taste and preferences (T)
The advertisement effect measured through the level of advertising
expenditure
(A)
Changes in population number or the number of the buyers (N)
 DEMAND SCHEDULE
A tabular statement of price/quantity relationship is called the
demand schedule. It relates the amount the consumer is willing to buy
corresponding to each conceivable price for that given commodity, per unit
of time. There are, thus, two types of demand schedule:
(i) The individual’s demand schedule and
(ii) The market demand schedule.
A demand schedule is a table that lists the quantity of a good a
person will buy at each different price. The demand curve is a graphical
depiction of the relationship between the price of a good and the quantity
of the good that a consumer would demand under certain time, place and
circumstances. The demand
relationship can also be expressed mathematically: Q = f(P; Y, Prg, Pop, X)
where Q is quantity demanded, P is the price of the good, Prg is the price of
a related good, Y is income, Pop is population and X is the expectation of
some relevant future variable such as the future price of the product. The
semi-colon means that the arguments to its right are held constant when
the relationship is plotted two dimensionally in (price, quantity) space. If
one of these other variables changes the
demand curve will shift. For example, if the population increased then there
would
be an outward (rightward) shift of the demand curve, since more
consumers would
mean higher demand. This shift is referred to as a change in demand and
results from a change in the constant term. Movements along the demand
curve occur only when quantity demanded changes in response to a
change in price.
Individual Demand Schedule:
A tabular list showing the quantities of a commodity that will be
purchased by an individual at each alternative conceivable price in a given
period of time (say
per day, per week, per month or per annum) is referred to as an individual
demand
schedule.
Price of apple (Rs. Per kg) Amount demanded per week
(Quantities in kg.)
80 2
70 4
60 6
50 10
40 16

The individual demand schedule has following characteristics:

i) The demand schedule does not indicate any changes in demand by the
individual concerned, but merely expresses his present behavior in
purchasing the commodity at alternative prices.
ii) It shows only the variation in demand at varying prices.
iii) It seeks to illustrate the principle that more of a commodity is
demanded at a lower price than at a higher one. In fact, most of the
demand schedules show an inverse relationship between price and
quantity demanded.

Market Demand Schedule:

The demand side of the market is represented by the demand
schedule. It is
tabular statement narrating the quantities of a commodity demanded in
aggregate by all the buyers in the market at different prices over a given
period of time. A market demand schedule, thus, represents the total
market demand at various prices. Theoretically, the demand schedule of all
individual consumers of a commodity can be complied and combined to
form a composite demand schedule, representing the total demand for the
commodity at various alternative prices.

DEMAND CURVE
The demand curve is the graph depicting the relationship between the
price
of a certain commodity, and the amount of it that consumers are willing
and able to
purchase at that given price. It is a graphic representation of a demand
schedule. The demand curve for all consumers together follows from the
demand curve of every individual consumer. Demand curves are used to
estimate behaviours in competitive markets, and are often combined with
supply curves to estimate the equilibrium price and the equilibrium quantity
of that market. In a monopolistic market, the demand curve facing the
monopolist is simply the market demand curve.
 THE LAW OF DEMAND
The law of demand describes the general tendency of consumers’
behavior in demanding a commodity in relation to the changes in its price.
The law of demand expresses the nature of functional relationship between
two variables of the demand relation, viz., the price and the quantity
demanded. It simply states that demand varies inversely to changes in
price. The nature of this inverse relationship stressed by the law of demand
which forms one of the best known and most significant laws in
economics. “The higher the price of a commodity, the smaller is the
quantity demanded and lower the price, larger the quantity demanded”. The
demand for a commodity extends as the price falls and contracts as the
price rises. Or briefly stated, the law of demand stresses that, other things
remaining unchanged, demand varies inversely with price. The conventional
law of demand, however, relates to the much simplified demand function:
D = f (P) where,
D represents demand,
P the price and
f, connotes a functional Relationship.
It, however, assumes that other determinants of demand are
constant and only price is the variable and influencing factor. The relation
between price and quantity of demand is usually an inverse or negative
relation, indicating a larger quantity demanded at a lower price and smaller
quantity demanded at a higher price.

ASSUMPTIONS UNDERLYING THE LAW OF

DEMAND
1. No expectation of future price changes or shortages

2. No change in consumer’s preferences

3. No change in the fashion

4. No change in the price of related goods

5. No change in consumer’s income:

6. No change in size, age composition and sex ratio of the population

7. No change in the range of goods available to the consumers

8. No change in government policy

EXCEPTIONS TO THE LAW OF DEMAND

1. Giffen goods

2. Conspicuous Consumption

3. Conspicuous necessities

4. Ignorance

5. Emergencies

6. Future changes in prices

7. Change in fashion

8. Articles of Snob Appeal

9. Speculation