ASSIGNMENT

1. What do you understand by the term ‘Managerial Economics?

Managerial economics refers to the management of business using economic theories,

tools, and concepts. It is simply the amalgamation of management principles and economic
theories for better problem solving and decision making. It is a branch of economics that
applies economic theories for analysis, assumption, and prediction of business conditions

2. How is managerial economics related to macro economics?

Macroeconomics deals with the performance, structure, and behavior of an economy as a

whole. Managerial economics applies microeconomic theories and
techniques to management decisions. It is more limited in scope as
compared to microeconomics.

3. ‘Managerial Economics is dynamic in nature’. Explain the statement.

Managerial Economics is the integration of/ bridges the gap between economic theory
with/& business practice so as to facilitate decision making” Comment/ outline the nature
and scope of Managerial Economics in light of this statement.
 4. Explain the significance of managerial economics in business.

Significance of Managerial Economics

1.Business Planning.
2. Cost Control.
3. Price Determination.
4. Business Prediction.
5. Profit Planning & Control.
6. Inventory Management.
7. Manages Copital.

5. Explain the theory of demand applied to operational issues.

Demand is defined as the quantity of a commodity that a Consumer is capable of buying and is
willing to pay the given price for it at the given time. The Theory of Demand is a Law that states the
relationship between the quantity Demanded of a product and its price, assuming that all the other
factors affecting the Demand are constant. According to the Law of Demand Theory, the quantity
Demanded of a commodity is inversely related to its price in the market. Through this article, we will
try to comprehend the Theory of derived Demand, the factors affecting Demand, the Demand curve
and the application of Demand Theory.