Nature and Scope
The Nature and Scope of Managerial Economics
Dr. Mohammad Abdul Mukhyi, SE., MM
Economics is the social science that studies the production, distribution, and consumption of goods and services. Managerial economics (sometimes referred to as business economics), is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis and correlation, Lagrangian calculus (linear). If there is a unifying theme that runs through most of managerial economics it is the attempt to optimize business decisions given the firm's objectives and given constraints imposed by scarcity, for example through the use of operations research and programming.
4/18/2010 Managerial Economic 2
1
Managerial Economics
Manager A person who directs resources to achieve a stated goal. Economics The science of making decisions in the presence of scare resources. Managerial Economics The study of how to direct scarce resources in the way that most efficiently achieves a managerial goal.
4/18/2010 Managerial Economic 3
The Global Trade Economy
The Metropolitan Bioregional Economy Organic & Specialty Agriculture Local Commerce (locally produced goods and services) Construction (Housing, etc.) Education (basic, life management, citizenship) Basic & Holistic Health Care & Education Hand Crafts Arts Sports Child Care Elder Care Home & Yard Care Sustainable Land Use Employment Security Education (basic, life management, citizenship) Urban Environment & Social Welfare Services Conservation & Recreation Local Philanthropy
Market Sectors
Commodity Agriculture (wheat, rice, soybeans, beef, coffee, bananas, etc.) Electronics Vehicles High Tech Health Care, Pharmaceuticals Hardware Mass Produced Clothing, Cloth Goods Hydrocarbon-Based Energy Financial Services Short term R&D
Public Goods (The
Dr. Mohammad Abdul Mukhyi, SE., MM
Economics is the social science that studies the production, distribution, and consumption of goods and services. Managerial economics (sometimes referred to as business economics), is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis and correlation, Lagrangian calculus (linear). If there is a unifying theme that runs through most of managerial economics it is the attempt to optimize business decisions given the firm's objectives and given constraints imposed by scarcity, for example through the use of operations research and programming.
4/18/2010 Managerial Economic 2
1
Managerial Economics
Manager A person who directs resources to achieve a stated goal. Economics The science of making decisions in the presence of scare resources. Managerial Economics The study of how to direct scarce resources in the way that most efficiently achieves a managerial goal.
4/18/2010 Managerial Economic 3
The Global Trade Economy
The Metropolitan Bioregional Economy Organic & Specialty Agriculture Local Commerce (locally produced goods and services) Construction (Housing, etc.) Education (basic, life management, citizenship) Basic & Holistic Health Care & Education Hand Crafts Arts Sports Child Care Elder Care Home & Yard Care Sustainable Land Use Employment Security Education (basic, life management, citizenship) Urban Environment & Social Welfare Services Conservation & Recreation Local Philanthropy
Market Sectors
Commodity Agriculture (wheat, rice, soybeans, beef, coffee, bananas, etc.) Electronics Vehicles High Tech Health Care, Pharmaceuticals Hardware Mass Produced Clothing, Cloth Goods Hydrocarbon-Based Energy Financial Services Short term R&D
Public Goods (The