PRESENTATION ON

MANAGERIAL ECONOMIC

PRESENTED BY
AJAY TIWARI
MBA FIRST SEMESTER

1. MEANING OF MANAGERIAL ECONOMICS 2. ROLE OF MANAGERIAL ECONOMIST 3. RESPONSIBILITY OF MANAGERIAL ECONOMIST 4. RELATIONSHIP OF MANAGERIAL ECONOMIC WITH OTHER DISCIPLINE.

What is Managerial Economics? Douglas - Managerial economics is .. the

application of economic principles and methodologies to the decision-making process within the firm or organization.

ROLE AND RESPONSIBILITIES OF A MANAGERIAL ECONOMIST AND

RELATIONSHIP OF MANAGERIAL ECONOMIC WITH OTHER DISCIPLINES

ROLE OF MANAGERIAL ECONOMIST

These days managerial economists have become universal creatures in modern business. Enterprises they are called by various name such as ,managerial economist. Business economist, Company economist or Economic advisor.

ROLE OF MANAGERIAL ECONOMIST

1. Analysis of External Factors. The
external factor are beyond the control of management.
What are present trends in national and international economics? What are the market and customer opportunities? What are the expectations about the price and availability of raw material ?

2. Analysis of Internal Factor. The internal factor are known

as business operations which are performed internally.

What will be the reasonable sales and profit targets for the next year? What changes in wages and price policies should be made now? How much cash will be available in coming month ?

Specific Function: It is generally used for business

management and management consultants. Sales Forecasting Market Research Pricing problem of the Industry Economic analysis of competing Firm.

RESPONSIBILITIES OF MANAGERIAL ECONOMIST To Make Resonable Profit on Capital Employed Status In The Firm. Successful Forecasts. Sources of Economic Information.

RELATIONSHIP OF MANAGERIAL ECONOMICS WITH OTHER DISCIPLINES.

Relationship of Managerial Economic with other Discipline

Micro Economic Theory

Macro Economic theory

Operation Research
Theory of Decision Making

Statistics
Management Theory and Accounting

Micro Economic Theory : Managerial Economics springs from microeconomic theory, demand concepts and theories of market structure are new elements of microeconomics used by managerial economists..

Macro Economic Theory: In this fields has little relevance

for managerial economics but atleast one part of it is incorporated in managerial economics, i.e , national forecasting..

Operation Research: Managerial economics depends

heavily on the models and tools of operations research or quantitative techniques.

Theory of Decision making: Decision making theory has

been developed to deal with problem of choice or decision making under certainity .

Statistics: Statistics helps in empiricial testing of theory.

With its helps better decisions relating to demand and cost function, production, sales or distribution are taken.

Management Theory and Accounting: Accounting information is one of the principal sources of data required by managerial economics for his decision making purpose.