The science of Managerial Economics has emerged recently with the growing variability and

unpredictability of the business environment, business manager have become increasingly

concerned with finding rational and ways of adjusting to an exploiting environmental changes.
Managerial Economist have defined managerial economics in different ways. Some of the
variety of definitions are given below:
1. Managerial economics is concerned with the application of business principles and
methodologies to the decision-making process within the firm or an organization under
the condition of uncertainty. It seeks to establish the rules and principles to facilitates the
attainment of the desired economic aim of management.

Source: Textbook: Introduction on Managerial Economics by Prof. Evan J Douglas

2. Milton H. Spencer and Lonis Siegelman define Managerial Economics as “the integration
of economic theory with business theory with business practice for the purpose of
facilitating decision making and forward planning by management”.

3. Managerial economics is a stream of management studies which emphasizes

solving business problems and decision-making by applying the theories and principles
of microeconomics and macroeconomics. It is a specialized stream dealing with the
organization’s internal issues by using various economic theories.

Source: https://theinvestorsbook.com/managerial-economics.html

4. The application of economic theory and methods to business decision making. It can be
seen as a means to an end by managers in terms of finding the most efficient way of
allocating their scarce resources and reaching their objectives.

Source: Cambridge University Press