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“managerial economics consists of the use of economic modes of thought to analyze business
situations” – problems in business economics – McNair & Meriam
“The purpose of managerial economics is to show how economic analysis can be used in
formulating business policies” – Joel Dean
As a Science
The ordering knowledge is called science, in which rules are made and the truth of the rules is
examined. On examining this matter, managerial economics seems like science, because it also
has rules and principles. These principles are discovered, and it is also suitable for predicting
with orderly knowledge.
That is the anticipated work you do. And how much work we do, how much difference is there
between them. The task of finding both of them is also of managerial economics.
Thus, The ideal decision was taken by studying the economics of the egg. So that the ultimate
purpose of the firm’s benefit maximization can be met. This gives importance to policy-making
rather than theoretical interpretation. Thus, this is the ideal and policy science.
An Art
The process of doing any work in the best way is art. in the managerial economics. Such a
manager moves the firm between many internal and adventure uncertainties.
Thus, She chooses only those instruments from the limited means of alternative use. Not only
scholarly but also friendly conditions. In managerial economics, managers have many methods
in any form.
So, There is a means for doing any work. To do any work but to use the same methods and
tools in them, which can bring maximum benefit to themselves and at least loss.
Conclusion
It is clear from the appropriate explanation that due to the theory of managerial economics, it is
a part of microeconomics.
Therefore, due to the strange mix of science and art in managerial economics, it is given the
Name of scientific art, it is both science and art.
Therefore, there was not much known about its area, but I am going to explain the areas which
are usually seen. Which prove to be very helpful to you.
1. Production and Cost Analysis
Managerial economics determines the quantity of production and analyzing. so the needs of its
(product, planning of quantity of profit, pricing policy) are crucial for effective control of the firm.
Thus, under the assumptions of cost-average marginal cost expansion and variable costs, 2.
short-term and long-term costs, 3. considerations of measuring procedures, 4. costs and
relationships in production quantities, 5. the process of the production process and equation
point analysis etc.
Thus, Useful in showing the path of economic well-being- Business economics inspires
managers to operate the business in such a way that the path of maximum economic welfare is
paved.
Thus, the managerial economics 1. The benefits of maximization and profit planning for the
benefits, 2. The nature of the assumptions and benefits, 3. The measurement of profit 4. The
appropriate benefits policy comes into the ordered zone.
5. Capital Management
Capital is the life of the modern business. For the 1. proper planning of capital loss, 2. proper
planning of capital loss, and 3. effective control of the cost of capital to the managers. the
calculation of the rate of profit received on it.
Thus, the evaluation of the discretion for the full election from the alternative expenditure of
capital. and expenditure and Study of topics etc. so that is the important part of
capital management in the managerial economics.
LEARN MORE: Demand Forecasting: Meaning, Objectives, Features, Need & Limitations
The sources of capital known by the managers are used in the way of using those sources in
the right way, and the firm is given the most benefit. This is all described in this area.
6. Project Evolution
When business projects are evaluated, the utility and poets of different schemes of business are
traced. So that those deficiencies and utilities should be adjusted and used by making new
rules.
Thus, the exchange analysis describes the use of self-proportionate means of measuring
instruments based on demand and cost analysis. and the equality in the value policy.
7. Others
Which does not come into the study area of managerial economics? So is considered in the
periphery of the field of managerial economics, which is as follows.