Scope and importance of managerial economics?

Answer 1

Business managers need to know about macroeconomics because firms operate in and are influenced by the behavior of the overall economy. Factors such as interest rates, employment, inflation, money supply, etc., affect the business environment and financial conditions in general, so firms must address macroeconomic issues in their planning and management strategy. Macroeconomic forecasts and strategies are more important for large firms than for small businesses.

Answer 2

its a economics for decision making where we have to be very optimize and implement those situation which will be helpful in profit maximization in our businees effectively and efficiently since the micro economics explains the concepts like demnd,production ,supply analysis,so that it maximises the profit.

Answer 3

Managerial Economics is often interchangeable with Business Economics, though there is some difference between these two terms:

i) Business Economics - means Economics necessary to be understood for running any business.

ii) Managerial Economics - lays more emphasis on the managerial functions in any business firm. Managerial functions are decision making and forward planning.

DEAN, author of the first managerial economics text books defines managerial economics as "the use of economic analysis in the formulation of business policies"

Out of two major managerial functions served by the subject matter under managerial economics are decision making and forward planning:

Lets explore the scope for decision making:

1. Decision relating to demand.

2. Decision related to Cost and production.

3. Decision relating to price and market.

4. Decision relating to profit management.

5. Macro economic factor.

Answer 4

yes , managerial economics plays a vital role in business administration as the life is all about DEMAND and SUPPLY , so as in business also ...

Answer 5

Microeconomics is important to understand the working of free market economy. It tells us as to how the prices of the products and the factors of production are determined.