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What are necessities the emergence of managerial economics as a separate field of study?
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∙ 12y ago
What led to the emergency of managerial economics as a separate field of study
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∙ 12y ago
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How managerial economics is link with other academic disciplines?
1. Relationship with economics:The relationship between managerial economics and economics theory may be viewed form the point of view of the two approaches to the subject Viz. Micro Economics and Marco Economics. Microeconomics is the study of the economic behavior of individuals, firms and other such micro organizations. Managerial economics is rooted in Micro Economic theory. Managerial Economics makes use to several Micro Economic concepts such as marginal cost, marginal revenue, elasticity of demand as well as price theory and theories of market structure to name only a few. Macro theory on the other hand is the study of the economy as a whole. It deals with the analysis of national income, the level of employment, general price level, consumption and investment in the economy and even matters related to international trade, Money, public finance, etc.The relationship between managerial economics and economics theory is like that of engineering science to physics or of medicine to biology. Managerial economics has an applied bias and its wider scope lies in applying economic theory to solve real life problems of enterprises. Both managerial economics and economics deal with problems of scarcity and resource allocation.2. Management theory and accounting:Managerial economics has been influenced by the developments in management theory and accounting techniques. Accounting refers to the recording of pecuniary transactions of the firm in certain books. A proper knowledge of accounting techniques is very essential for the success of the firm because profit maximization is the major objective of the firm.Managerial Economics requires a proper knowledge of cost and revenue information and their classification. A student of managerial economics should be familiar with the generation, interpretation and use of accounting data. The focus of accounting within the firm is fast changing from the concepts of store keeping to that if managerial decision making, this has resulted in a new specialized area of study called "Managerial Accounting".3. Managerial Economics and mathematics:The use of mathematics is significant for managerial economics in view of its profit maximization goal long with optional use of resources. The major problem of the firm is how to minimize cost, hoe to maximize profit or how to optimize sales. Mathematical concepts and techniques are widely used in economic logic to solve these problems. Also mathematical methods help to estimate and predict the economic factors for decision making and forward planning.Mathematical symbols are more convenient to handle and understand various concepts like incremental cost, elasticity of demand etc., Geometry, Algebra and calculus are the major branches of mathematics which are of use in managerial economics. The main concepts of mathematics like logarithms, and exponentials, vectors and determinants, input-output models etc., are widely used. Besides these usual tools, more advanced techniques designed in the recent years viz. linear programming, inventory models and game theory fine wide application in managerial economics.4. Managerial Economics and Statistics:Managerial Economics needs the tools of statistics in more than one way. A successful businessman must correctly estimate the demand for his product. He should be able to analyses the impact of variations in tastes. Fashion and changes in income on demand only then he can adjust his output. Statistical methods provide and sure base for decision-making. Thus statistical tools are used in collecting data and analyzing them to help in the decision making process.Statistical tools like the theory of probability and forecasting techniques help the firm to predict the future course of events. Managerial Economics also make use of correlation and multiple regressions in related variables like price and demand to estimate the extent of dependence of one variable on the other. The theory of probability is very useful in problems involving uncertainty.5. Managerial Economics and Operations Research:Taking effectives decisions is the major concern of both managerial economics and operations research. The development of techniques and concepts such as linear programming, inventory models and game theory is due to the development of this new subject of operations research in the postwar years. Operations research is concerned with the complex problems arising out of the management of men, machines, materials and money.Operation research provides a scientific model of the system and it helps managerial economists in the field of product development, material management, and inventory control, quality control, marketing and demand analysis. The varied tools of operations Research are helpful to managerial economists in decision-making.6. Managerial Economics and the theory of Decision- making:The Theory of decision-making is a new field of knowledge grown in the second half of this century. Most of the economic theories explain a single goal for the consumer i.e., Profit maximization for the firm. But the theory of decision-making is developed to explain multiplicity of goals and lot of uncertainty.As such this new branch of knowledge is useful to business firms, which have to take quick decision in the case of multiple goals. Viewed this way the theory of decision making is more practical and application oriented than the economic theories.7. Managerial Economics and Computer Science:Computers have changes the way of the world functions and economic or business activity is no exception. Computers are used in data and accounts maintenance, inventory and stock controls and supply and demand predictions. What used to take days and months is done in a few minutes or hours by the computers. In fact computerization of business activities on a large scale has reduced the workload of managerial personnel. In most countries a basic knowledge of computer science, is a compulsory programme for managerial trainees.To conclude, managerial economics, which is an offshoot traditional economics, has gained strength to be a separate branch of knowledge. It strength lies in its ability to integrate ideas from various specialized subjects to gain a proper perspective for decision-making.A successful managerial economist must be a mathematician, a statistician and an economist. He must be also able to combine philosophic methods with historical methods to get the right perspective only then; he will be good at predictions. In short managerial practices with the help of other allied sciences.
What is the importance in the study of international economics?
Rising international economic interdependence arises a need of studying International Economics as separate field under economics. - It broadens our outlook beyond the confines of narrow nationalism esp in this era of globalization - It inspires & motivates that economist inside u to rethink the trade policies & may be u will be a minister someday. In short, its importance is as wide as ur imagination KANAV SHARMA, GDC(udhampur), J&K.
Importance of business economics?
Business economics is an extremely important matter. And should be of high concern for people in both large and small firms. The discipline allows you to better understand markets and potentially theorize a manipulation formula to better profits in said firm. While it can increase profits in the firm it should not be distinguished as the only method of production. As there are many different subjects which do need to be focused on as well as business economics. Business Economics would allow individuals to spot economic bubbles as well and make the needed changes in their own firm. For example the housing market crash of 2008 was the cause of an economic bubble which was not due to any one individual or corporation, but was the consequences of what sometimes happens in the market. The same type of even happened with Dutch tulips centuries ago. Which believe it or not traded for what would be millions of dollars today. Although, it is hard to grasp that an individual would pay for such a thing. Eventually, people caught on and tulips as well as rich individuals and people saw their incomes drop. If a person were to spot this in their investment and know this factor in business economics they could separate themselves from the bubble and failure. Maybe not entirely as the market could somehow reflect on them, but not enough to loose all income, and become extremely broke.
Definition of income convergence?
The term convergence means two things converging upon each other or getting closer. In the case of economics and income it means two separate countries or economies whose income usually average income is converging or getting closer over time. An example would be the average income in the Mexico and the Untied States hypothetically getting closer over time.
Why is it important to separate variable and fixed costs?
it is important to separate variable and fixed costs. Another reason it is important to separate these costs is because variable costs are used to determine the contribution margin, and the contribution margin is used to determine the break-even point.
What is marginal economics explain?
the application of economic science in business decision making is all pervasive.more specifically, economic laws and tools of economic analysis are now applied a great deal in the process of business decision making. this has led,asmentioned earlier, to the emergence of a separate branch of study colled managerial economics.
How managerial economics is link with other academic disciplines?
1. Relationship with economics:The relationship between managerial economics and economics theory may be viewed form the point of view of the two approaches to the subject Viz. Micro Economics and Marco Economics. Microeconomics is the study of the economic behavior of individuals, firms and other such micro organizations. Managerial economics is rooted in Micro Economic theory. Managerial Economics makes use to several Micro Economic concepts such as marginal cost, marginal revenue, elasticity of demand as well as price theory and theories of market structure to name only a few. Macro theory on the other hand is the study of the economy as a whole. It deals with the analysis of national income, the level of employment, general price level, consumption and investment in the economy and even matters related to international trade, Money, public finance, etc.The relationship between managerial economics and economics theory is like that of engineering science to physics or of medicine to biology. Managerial economics has an applied bias and its wider scope lies in applying economic theory to solve real life problems of enterprises. Both managerial economics and economics deal with problems of scarcity and resource allocation.2. Management theory and accounting:Managerial economics has been influenced by the developments in management theory and accounting techniques. Accounting refers to the recording of pecuniary transactions of the firm in certain books. A proper knowledge of accounting techniques is very essential for the success of the firm because profit maximization is the major objective of the firm.Managerial Economics requires a proper knowledge of cost and revenue information and their classification. A student of managerial economics should be familiar with the generation, interpretation and use of accounting data. The focus of accounting within the firm is fast changing from the concepts of store keeping to that if managerial decision making, this has resulted in a new specialized area of study called "Managerial Accounting".3. Managerial Economics and mathematics:The use of mathematics is significant for managerial economics in view of its profit maximization goal long with optional use of resources. The major problem of the firm is how to minimize cost, hoe to maximize profit or how to optimize sales. Mathematical concepts and techniques are widely used in economic logic to solve these problems. Also mathematical methods help to estimate and predict the economic factors for decision making and forward planning.Mathematical symbols are more convenient to handle and understand various concepts like incremental cost, elasticity of demand etc., Geometry, Algebra and calculus are the major branches of mathematics which are of use in managerial economics. The main concepts of mathematics like logarithms, and exponentials, vectors and determinants, input-output models etc., are widely used. Besides these usual tools, more advanced techniques designed in the recent years viz. linear programming, inventory models and game theory fine wide application in managerial economics.4. Managerial Economics and Statistics:Managerial Economics needs the tools of statistics in more than one way. A successful businessman must correctly estimate the demand for his product. He should be able to analyses the impact of variations in tastes. Fashion and changes in income on demand only then he can adjust his output. Statistical methods provide and sure base for decision-making. Thus statistical tools are used in collecting data and analyzing them to help in the decision making process.Statistical tools like the theory of probability and forecasting techniques help the firm to predict the future course of events. Managerial Economics also make use of correlation and multiple regressions in related variables like price and demand to estimate the extent of dependence of one variable on the other. The theory of probability is very useful in problems involving uncertainty.5. Managerial Economics and Operations Research:Taking effectives decisions is the major concern of both managerial economics and operations research. The development of techniques and concepts such as linear programming, inventory models and game theory is due to the development of this new subject of operations research in the postwar years. Operations research is concerned with the complex problems arising out of the management of men, machines, materials and money.Operation research provides a scientific model of the system and it helps managerial economists in the field of product development, material management, and inventory control, quality control, marketing and demand analysis. The varied tools of operations Research are helpful to managerial economists in decision-making.6. Managerial Economics and the theory of Decision- making:The Theory of decision-making is a new field of knowledge grown in the second half of this century. Most of the economic theories explain a single goal for the consumer i.e., Profit maximization for the firm. But the theory of decision-making is developed to explain multiplicity of goals and lot of uncertainty.As such this new branch of knowledge is useful to business firms, which have to take quick decision in the case of multiple goals. Viewed this way the theory of decision making is more practical and application oriented than the economic theories.7. Managerial Economics and Computer Science:Computers have changes the way of the world functions and economic or business activity is no exception. Computers are used in data and accounts maintenance, inventory and stock controls and supply and demand predictions. What used to take days and months is done in a few minutes or hours by the computers. In fact computerization of business activities on a large scale has reduced the workload of managerial personnel. In most countries a basic knowledge of computer science, is a compulsory programme for managerial trainees.To conclude, managerial economics, which is an offshoot traditional economics, has gained strength to be a separate branch of knowledge. It strength lies in its ability to integrate ideas from various specialized subjects to gain a proper perspective for decision-making.A successful managerial economist must be a mathematician, a statistician and an economist. He must be also able to combine philosophic methods with historical methods to get the right perspective only then; he will be good at predictions. In short managerial practices with the help of other allied sciences.
How can religion economics unify and separate society?
They unify because the are different and they are not the same as the other stuff that are there and not
What social and political factors led to the emergence of sociology as a discipline?
Sociology is defined as the study of the development, structure, and functioning of human society. The factors that led to the emergence of sociology as a separate discipline are Inequality and class structure in the society, criminal deviance and changes in population.
Developer which I have hired told me that a door can be a misuse of place in kitchen. Is it important to have a separate door for kitchen?
It all depends upon your necessities, if you require a door in kitchen then fix it.
Scientists break down evolution into which two categories?
There are no separate types of evolution. Evolution is the changing of allele frequencies within populations. This definition encompasses all evolution, from adaptation within a species to the emergence of new major taxa from existing taxa (eg. the emergence of birds from dinosaurs).
Did whales come before humans?
Answer 1Whales first evolved roughly 54 million years ago.Homo sapiens (modern humans) evolved roughly 4 million years ago.Answer 2Whales and humans share a common ancestry in the clade of Boreoeutheria, dating back some 65 million years. By my best estimate, that's when the lineages leading to modern humans and modern whales went their separate ways.Modern whales, like the blue whale, form a diverse group of species, just like modern apes, like the humans, form a diverse group of species. On a geological timescale, there may not be much difference between the emergence of the modern species of whale from their basal clades and the emergence of modern species of ape from their basal clades.Comparing the emergence of modern humans to the emergence of whales isn't really a useful comparison. It's like comparing the emergence of vehicles to the emergence of the Audi A3.
What is terotechnology?
The name given to the process of life-cycle analysis embracing a number of separate but related techniques, sciences disciplines that uses managerial and financial expertise as well as engineering skills when designing, installing and running machinery.
Who was the first woman to win a Nobel Peace Prize in science?
The Nobel Peace Prize is a separate category to the others. The categories are; Physics Chemistry Medicine Literature Economics Peace
First woman to win Nobel Peace Prize for science?
The Nobel Peace Prize is a separate category to the others. The categories are; Physics Chemistry Medicine Literature Economics Peace
In India first women to win nobel peace prize in literature?
The Nobel Peace Prize is a separate category to the others. The categories are; Physics Chemistry Medicine Literature Economics Peace
Who is the first woman writer to win nobel peace prize for literature?
The Nobel Peace Prize is a separate category to the others. The categories are; Physics Chemistry Medicine Literature Economics Peace
