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Meaning and Importance of Managerial Economics
Meaning and Importance of Managerial Economics
MANAGERIAL ECONOMICS
Managerial Economics is the integration of economic theory with business practice for the purpose of facilitating decision making and forward planning by the management.
ECONOMIC THEORY
BUSINESS PROBLEMS
MANAGERIAL ECONOMICS
(Decision making)
FEATURES
New discipline & recent origin.
Its more realistic and pragmatic. Science of decision-making. Its both conceptual & metrical.
Use macro economic concept like National income, inflation, trade cycle etc.
Linear Programming & Theory of Games. Market Structure & conditions. Strategic Planning.
IMPORTANCE
Provides guidance for identification of key variable in decision-making.
Its both a science & an art. Helps executives to become more responsive, realistic & competent. Helps in optimum use of scarce resources.
Helps in attaining industry leadership, market share expansion and social responsibilities etc. Helps firm in forecasting economic variables.
Helps in understanding the various external factors & forces which affects business decision.
FUNCTIONS
Decision Making Forward Planning