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ME Chapter-1
ME Chapter-1
E-Mail: adugnatuji2017@gmail.com
MANAGERIAL ECONOMICS
Application of economic theory
and decision science tools to solve
managerial decision problems
OPTIMAL SOLUTION TO
MANAGERIAL DECISION PROBLEMS
b. Equi–Marginal Principle
e. Discounting Principle
making.
7/4/2021 By: Adugna Tuji 20
Discounting Principle
The process of reducing future values to their present values
business Economics
The scope covers two areas of decision making (A)
Profit Analysis
business decision-making.
They put the manager’s analytical ability to test and help in
Market research.
Production scheduling
Investment appraisal.
Advice on trade.
Environmental forecasting.