Economics
1. What do you understand by Managerial Economics? Give Definition and meaning of Managerial Economics.
Economics is the branch of Knowledge that deals with how the scarce resources can be used to produce valuable goods and services and distribute them efficiently among different classes of people in the society.
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.”
Pappas & Hirschey - “Managerial economics applies economic theory and methods to business and administrative decision-making.”
Salvatore - “Managerial economics refers to the application of economic theory and the tools of analysis of decision science to examine how an organisation can achieve its objectives most effectively.”
Why Managerial Economics? * A powerful “analytical engine”. * A broader perspective on the firm. * what is a firm? * what are the firm’s overall objectives? * what pressures drive the firm towards profit and away from profit * The basis for some of the more rigourous analysis of issues in Marketing and Strategic Management. * Economics contributes to a great deal towards the performance of managerial duties and responsibilities. * Like : Biology – Medical profession Physics - Engineering * Managers with working knowledge of economics can perform their functions more efficiently than those without it. * The emphasis here is on the maximization of the objective and limitedness of the resources. The task of management is to optimize the use of resources.
2. What are the characteristics and scope of Managerial Economics?
1. Microeconomics: It studies the problems and principles of an individual business firm or an individual industry. It aids the management in forecasting and evaluating the trends of the market.
2. Normative economics: It is concerned with
Economics is the branch of Knowledge that deals with how the scarce resources can be used to produce valuable goods and services and distribute them efficiently among different classes of people in the society.
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.”
Pappas & Hirschey - “Managerial economics applies economic theory and methods to business and administrative decision-making.”
Salvatore - “Managerial economics refers to the application of economic theory and the tools of analysis of decision science to examine how an organisation can achieve its objectives most effectively.”
Why Managerial Economics? * A powerful “analytical engine”. * A broader perspective on the firm. * what is a firm? * what are the firm’s overall objectives? * what pressures drive the firm towards profit and away from profit * The basis for some of the more rigourous analysis of issues in Marketing and Strategic Management. * Economics contributes to a great deal towards the performance of managerial duties and responsibilities. * Like : Biology – Medical profession Physics - Engineering * Managers with working knowledge of economics can perform their functions more efficiently than those without it. * The emphasis here is on the maximization of the objective and limitedness of the resources. The task of management is to optimize the use of resources.
2. What are the characteristics and scope of Managerial Economics?
1. Microeconomics: It studies the problems and principles of an individual business firm or an individual industry. It aids the management in forecasting and evaluating the trends of the market.
2. Normative economics: It is concerned with