Managerial Economics and Business sparings are the two terms, which, at times have been employ interchangeably..
The prime function of a management executive in a business organization is decision reservation and send on planning. Decision Making means the process of selecting one follow through from two or more alternative courses of action whereas forward planning means establishing plans for the future.
In fulfilling the function of decision making in an uncertainty framework, economic theory dirty dog be pressed into service with considerable advantage. Economic theory deals with a number of concepts and principles relating, for example, to profit, demand, cost, pricing production, competition, business cycles, national income, etc., which aided by allied disciplines like Accounting. Statistics and Mathematics weed be apply to solve or at least throw nigh light upon the problems of business management. The way economic analysis can be used towards solving business problems. Constitutes the subject press of Managerial Economics.
Definition of Managerial Economics
Managerial Economics can be defined as the discipline which deals with the application of economic theory to business management.
Characteristics of Managerial Economics
1.
Managerial Economics is micro-economic in character.
2.Managerial Economics largely uses that body of economic concepts and principles, which is know as Theory of the firm or Economics of the firm. In addition, it also seeks to apply boodle Theory, which forms part of Distribution Theories in Economics.
3.Managerial Economics is pragmatic. It avoids surd abstract issues of economic theory but involves complications ignored in economic theory to face the overall situation in which decisions are made..
4.Managerial Economics belongs to normative economics quite a than positive economics.
Production and Supply
Production analysis frequently take in physical terms while cost analysis...If you motivation to get a full essay, order it on our website: Orderessay
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