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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.
Angie Heaney
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∙ 15y agoits 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.
Wiki User
∙ 15y agoManagerial 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.
Wiki User
∙ 13y agoyes , managerial economics plays a vital role in business administration as the life is all about DEMAND and SUPPLY , so as in business also ...
Wiki User
∙ 10y agoMicroeconomics 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.
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Nature and scope of Industrial economics?
mai tumse answer puch raha hu bekuf
Nature and scope of environmental economics?
Nature of Business Economics :Traditional economic theory has developed along two lines; viz., normative and positive. Normative focuses on prescriptive statements, and help establish rules aimed at attaining the specified goals of business. Positive, on the other hand, focuses on description it aims at describing the manner in which the economic system operates without staffing how they should operate.The emphasis in business economics is on normative theory. Business economic seeks to establish rules which help business firms attain their goals, which indeed is also the essence of the word normative. However, if the firms are to establish valid decision rules, they must thoroughly understand their environment. This requires the study of positive or descriptive theory. Thus, Business economics combines the essentials of the normative and positive economic theory, the emphasis being more on the former than the latter.Scope of Business Economics :As regards the scope of business economics, no uniformity of views exists among various authors. However, the following aspects are said to generally fall under business economics.1. Demand Analysis and Forecasting2. Cost and production Analysis.3. Pricing Decisions, policies and practices.4. Profit Management.5. Capital Management.
How are goods and services distributed?
This is a rather broad (homework or study) question, for which the answer could be an entire book, or even a library of books. You need to look up the word "distribution" in the context of Economics. You'll then be able to glimpse the scope of your question and the answer to it.
Role of cost accounting in managerial decision making?
Role of cost accounting in managerial decision making?"
Who is the father of economics why he called father of economics from which word economics derived?
John Maynard Keynes"Father of Economics" some says that "Adam Smith" is the real father of economics
Scopes of managerial economics?
scope of managerial economics
Scope methods of economics?
about scope of managerial economics?
What is the importance of managerial economics principle in modern organization?
what is the importance of managerial economics principles in the modern organization?
What is the importance of managerial economics for an enterpreneur?
The importance of managerial economics for an enterpreneur is to help him to choose the right venture after taking effective analyzes of both fianancial and general situations that can positively or negatively affect a business. It is therefore important for every enterpreneur to have a fair knowledge in managerial economics.
Nature of managerial economics?
nature of managerial economics?
Scope of managerial economics as far as solving problem of business enterprise is concerned unlimitedelaborate?
chak de patte
Explain Managerial economics is economics applied in decision making?
Explain Managerial economics is economics applied in decision making?
What is the role of Managerial economics in the economy of Pakistan?
what is the role of managerial economics in Pakistan
Significance of managerial economics in decision making?
significance of managerial economics is decesion making
What is objective of managerial economics?
responsibilities of managerial eeconomic
What is the Difference between economics and manegrial economics?
difference between economics and managerial economics
What has the author Lawrence Southwick written?
Lawrence Southwick has written: 'Managerial economics' -- subject(s): Managerial economics
