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    Introduction of Managerial Economics

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    Rizza Mae Andoy
    Managerial economics applies microeconomic analysis and economic concepts to help managers make effective business decisions. It deals with solving practical problems using tools like demand analysis and forecasting, capital management, and cost-benefit analysis. The goal is optimal decision-making and profit maximization using limited resources. Demand forecasting, capital investments, and cost analysis are important areas addressed by managerial economics.

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    Introduction of Managerial Economics

    Uploaded by

    Rizza Mae Andoy
    2K views13 pages
    Managerial economics applies microeconomic analysis and economic concepts to help managers make effective business decisions. It deals with solving practical problems using tools like demand analysis and forecasting, capital management, and cost-benefit analysis. The goal is optimal decision-making and profit maximization using limited resources. Demand forecasting, capital investments, and cost analysis are important areas addressed by managerial economics.

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    managerial economics overview

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    Managerial economics applies microeconomic analysis and economic concepts to help managers make effective business decisions. It deals with solving practical problems using tools like demand analysis and forecasting, capital management, and cost-benefit analysis. The goal is optimal decision-making and profit maximization using limited resources. Demand forecasting, capital investments, and cost analysis are important areas addressed by managerial economics.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views13 pages

    Introduction of Managerial Economics

    Uploaded by

    Rizza Mae Andoy
    Managerial economics applies microeconomic analysis and economic concepts to help managers make effective business decisions. It deals with solving practical problems using tools like demand analysis and forecasting, capital management, and cost-benefit analysis. The goal is optimal decision-making and profit maximization using limited resources. Demand forecasting, capital investments, and cost analysis are important areas addressed by managerial economics.

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    © All Rights Reserved
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    Download as pptx, pdf, or txt
    of 13

    Alvarez, Jose Louie D.

    BSA 1-8
     Managerial economics deals with the
    application of the economic concepts,
    theories, tools, and methodologies to solve
    practical problems in a business.
     It helps the manager in decision making and
    acts as a link between practice and theory.
     It is sometimes referred to as business
    economics and is a branch of economics that
    applies microeconomic analysis to decision
    methods of businesses or other management
    units.
     The most important function in
    managerial economics is decision-
    making. It involves the complete course
    of selecting the most suitable action
    from two or more alternatives.

     The primary function is to make the


    most profitable use of resources which
    are limited such as labor, capital, land
    etc.
     A manager is very careful while taking
    decisions as the future is uncertain; he
    ensures that the best possible plans are
    made in the most effective manner to
    achieve the desired objective which is
    profit maximization.
     Economic theory and economic analysis
    are used to solve the problems of
    managerial economics.
     Economics basically comprises of two
    main divisions namely Microeconomics
    and Macroeconomics.
     Managerial economics covers both
    macroeconomics as well as
    microeconomics, as both are equally
    important for decision making and
    business analysis.
     Macroeconomics deals with the study of
    entire economy. It considers all the
    factors such as government policies,
    business cycles, national income, etc.
     Microeconomics includes the analysis of
    small individual units of economy such
    as individual firms, individual industry,
    or a single individual consumer.
     Demand analysis and forecasting
    involves huge amount of decision-
    making. Demand estimation is an
    integral part of decision making, an
    assessment of future sales helps in
    strengthening the market position and
    maximizing profit.
     In managerial economics, demand
    analysis and forecasting holds a very
    important place.
     Success of a firm depends on its
    primary measure and that is profit.
     Firms are operated to earn long term
    profit which is generally the reward for
    risk taking.
     Appropriate planning and measuring
    profit is the most important and
    challenging area of managerial
    economics.
     Capital management involves planning
    and controlling of expenses. There are
    many problems related to capital
    investments which involve
    considerable amount of time and
    labor.
     Cost of capital and rate of return are
    important factors of capital
    management.
     The demand for this subject has
    increased post liberalization and
    globalization period primarily because
    of increasing use of economic logic,
    concepts, tools and theories in the
    decision making process of large
    multinationals.
     Also, this can be attributed to
    increasing demand for professionally
    trained management personnel, who
    can leverage limited resources
    available to them and maximize
    returns with efficiency and
    effectiveness.
     Managerial economics leverages
    economic concepts and decision
    science techniques to solve
    managerial problems. It provides
    optimal solutions to managerial
    decision making issues.

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