What Is Meant by Managerial Economics?
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.what is meant by managerial economics?
Managerial economics is a study of application of managerial skills in economics,more over it help to find problems or obstacles in the business and provide solution for those problems.problems may be relating to costs, prices, forecasting the future market ,human resource management, profits etc.
Managerial economics is a study of application of managerial skills in economics, more over it help to find problems or obstacles in the business and provide solution for those problems. Managerial economics (also called business economics), is a branch of economics that applies microeconomic analysis to specific business decisions. As such, it bridges economic theory and economics in practice.
its fields and its Components?
Fields are:
Risk analysis, production analysis , price analysis and capital budgeted
Components:
Consumers
Microeconomics studies the actions of two major components: individual consumers and businesses. As a part of the economy, consumers sell their labor to business firms, in exchange for which they receive wages. Consumers then spend their earnings on goods and services they purchase from businesses, and pay taxes to the government for the services governments provide. Consumer spending is an important component of the economy, because consumers activity represents such a large part of a nations gross domestic product (GDP), the sum total of national economic activity. In the U.S., consumer spending accounts for about two-thirds of GDP.
Business Firms
Business firms represent another important component of an economy. Specialized fields of economics, such as industrial, business and managerial economics, study the actions and decisions of business and industry. In the economy, businesses produce goods and services, which they sell to consumers and governments. They then use the money they receive from the sale of goods and services to purchase other goods, such as materials and other inputs, from other firms, such as suppliers.
Markets
Economic activity occurs within markets, defined by economists as mechanisms for bringing together buyers and sellers of goods and services. Mainstream economists view markets as the best method in which to organize economic activity and far preferable to having the economy directed by a central planning authority, such as a governmental body. Under the market economy, buyers and sellers are free to enter transactions and seek those that bring them the greatest benefit.
Government
Although most economists prefer market economies to