Managerial Economics
|Managerial Economics |
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|UNIT -I |
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|[Pick the date] |
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Concept of Managerial Economics
The discipline of managerial economics deals with aspects of economics and tools of analysis, which are employed by business enterprises for decision-making. Business and industrial enterprises have to undertake varied decisions that entail managerial issues and decisions. Decision-making can be delineated as a process where a particular course of action is chosen from a number of alternatives. This demands an unclouded perception of the technical and environmental conditions, which are integral to decision making. The decision maker must possess a thorough knowledge of aspects of economic theory and its tools of analysis. The basic concepts of decision-making theory have been culled from microeconomic theory and have been furnished with new tools of analysis. Statistical methods, for example, are pivotal in estimating current and future demand for products. The methods of operations research and programming proffer scientific criteria for maximising profit, minimising cost and determining a viable combination of products.
Decision-making theory and game theory, which recognise the conditions of uncertainty and imperfect knowledge under which business managers operate, have contributed to systematic methods of assessing investment opportunities. Almost
| |
|UNIT -I |
| |
|[Pick the date] |
| |
| |
Concept of Managerial Economics
The discipline of managerial economics deals with aspects of economics and tools of analysis, which are employed by business enterprises for decision-making. Business and industrial enterprises have to undertake varied decisions that entail managerial issues and decisions. Decision-making can be delineated as a process where a particular course of action is chosen from a number of alternatives. This demands an unclouded perception of the technical and environmental conditions, which are integral to decision making. The decision maker must possess a thorough knowledge of aspects of economic theory and its tools of analysis. The basic concepts of decision-making theory have been culled from microeconomic theory and have been furnished with new tools of analysis. Statistical methods, for example, are pivotal in estimating current and future demand for products. The methods of operations research and programming proffer scientific criteria for maximising profit, minimising cost and determining a viable combination of products.
Decision-making theory and game theory, which recognise the conditions of uncertainty and imperfect knowledge under which business managers operate, have contributed to systematic methods of assessing investment opportunities. Almost