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Managerial Economics

On August 2nd, 2012, Posted by Author No Comments

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Definition of Managerial Economics

Managerial Economics can be defined as the framing a managerial decisions by making use of economic concepts and economic analysis to solve the problems. Managerial Economics is also known as Business Economics and is a part of microeconomics contributing to decision making in businesses. Business projections, industrial economics are also parts of Managerial Economics.

What are the different features of Managerial Economics?

Managerial Economics is quantitative in nature and comprises of quantitative techniques such as regression analysis, correlation and calculus. Also, there is the extensive use of operations research, computational methods like mathematical programming and game theory. Hence, Managerial Economics links up the theory and practices of economics.

What are the constituents of decision making in Managerial Economics?

managerial economicsThe manager has to make decisions in diverse aspects of the business right from assessing the available funds for the investment and the selection of the business area in which to operate, to deciding on the product, the amount to be produced, fixing the price of the product, regulating the production technology and in promoting the product. For these decisions, various types of analyses have to be conducted such as risk analysis, production analysis, pricing analysis and capital budgeting. Risk analysis is used to calculate risk and uncertainties in the decision making so that it can be managed. Production analysis is useful for evaluating the efficiency factors of production, the best possible distribution of the elements, calculating the costs and economies of scale. Pricing analysis is used to fix the best price for the product, taking into consideration factors such as relocation pricing, multiparty pricing of the product, judging the proper price, assessing price fluctuations. Capital budgeting is used for determining the purchases and investments that are necessary for the firm’s optimal operations.

Managerial Economics is actually an integrated subject that includes theories and models from different basis courses. If you find this difficult or are short of time, or just need cheap assignment help, our essay writing service is the place for you. Coursework help is our forte’ and we provide cheap essay writing service of standard quality that is guaranteed to get you good grades, so if you are looking to order or buy a custom coursework, visit our website.



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