Economics Assignment Help >> Managerial Economics

Managerial economics defined as “Economics which is concerned with economic analysis and application of economic concepts to the problems of formulating rational managerial decision”. Managerial economics sometimes referred to as business economics, thus it is a branch of economics that applies microeconomic analysis to business decision methods or other management units. It draws heavily from quantitative techniques for example as regression analysis, correlation, and Lagrangian calculus (linear).

Managerial decision areas

 assessment of investible funds
 choice of product
 determining optimum output
 selecting business area
 determining input-combination and technology
 sales promotion
 determining price of product

Business decision can be analyzed with managerial economics techniques, but it is mostly applied to

Risk analysis – There are various models which are used to quantify risk & asymmetric information and to employ them in decision rules to manage risk.
Production analysis
Pricing analysis
Capital budgeting

At many universities, the managerial economics subject is taught primarily to advanced undergraduates & graduate business schools. Managerial economics is approached as an integration subject. And it integrates many concepts from a variety of prerequisite courses. In most of countries countries it is possible to read for a degree in Business Economics which often covers , financial economics, managerial economics, game theory, business forecasting & industrial economics.

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Learning Managerial Economics Theory & Concepts

• Contribution of Economic Theory to Managerial Economics
• Economics and Managerial Decision Making
• Scarcity and Decision Making
• Scope of Managerial Economics
• Basic Principles of Managerial Economics
• Role of Managerial Economist
• Objectives of the Firm
• Consumer Demand Analysis
• Demand Elasticity
• Production Analysis
• Cost and Supply Analysis
• Break Even Analysis
• Supply Analysis
• Market Structures
• Pricing Practices
• Capital Budgeting
• Business Decisions