Discuss What Managerial Economics Is All About
Introduction Managerial Economics and Business economics are the two terms, which, at times have been used interchangeably. Of late, however, the term Managerial Economics has become more popular and seems to displace progressively the term Business Economics. The discovery of managerial economics as a separate course in management studies has been attributed to three major factors: i) The growing complexity of business decision-making processes, because of changing market conditions and the globalization of business transactions. ii) The increasing use of economic logic, concepts, theories, and tools of economic analysis in business decision-making processes. iii) Rapid increase in demand for professionally trained managerial manpower.
It should be noted that the recent complexities associated with business decisions has increased the need for application of economic concepts, theories and tools of economic analysis in business decisions. The reason of making appropriate business decision requires clear understanding of existing market conditions, market fundamentals and the business environment in general. Business decision-making processes require intensive and extensive analysis of the market conditions in the product, input and financial markets. Economic theories, logic and tools of analysis have been developed for the analysis and prediction of market behaviors. The application of economic concepts, theories, logic, and analytical tools in the assessment and prediction of market conditions and business environment has proved to be a significant help to business decision makers all over the world.
Definition of Managerial Economics Managerial economics has been generally defined as the study of economic theories, logic and tools of economic analysis, used in the process of business decision making. It involves the understanding and use of economic theories and techniques of economic analysis in analyzing and solving business problems, evaluate business
It should be noted that the recent complexities associated with business decisions has increased the need for application of economic concepts, theories and tools of economic analysis in business decisions. The reason of making appropriate business decision requires clear understanding of existing market conditions, market fundamentals and the business environment in general. Business decision-making processes require intensive and extensive analysis of the market conditions in the product, input and financial markets. Economic theories, logic and tools of analysis have been developed for the analysis and prediction of market behaviors. The application of economic concepts, theories, logic, and analytical tools in the assessment and prediction of market conditions and business environment has proved to be a significant help to business decision makers all over the world.
Definition of Managerial Economics Managerial economics has been generally defined as the study of economic theories, logic and tools of economic analysis, used in the process of business decision making. It involves the understanding and use of economic theories and techniques of economic analysis in analyzing and solving business problems, evaluate business
References: • Dwivedi, D. N. (2002) Managerial Economics, sixth edition (New Delhi: Vikas Publishing House Ltd). • Evan J Douglas, Managerial Economics: Analysis and Strategy, (Prentice-Hall, N.J., 1987). • • • R Davis and S Chang, Principles of managerial Economics (Prentice-Hall, N.J., 1986). M H Spencer and L Seigelman, Managerial Economics, (Irwin Illinois, 1969). E Mansfield (ed.), Managerial Economics and Operations Research, (New York: W.W. Norton and Co., Inc., 1966). • • Joel Dean, Managerial Economics, (New Delhi: Prentice Hall of India, 1977). J M Keynes, The General Theory of Employment Interest and Money, (Harcourt Brace, New York, 1936). • K E Boulding, Economic Analysis, (New York: Harper and Bros., 1948). 13