WHAT IS ECONOMICS?

WHAT IS ECONOMICS?Economics is study of human economic behavior which is related with unlimited wants and limited resources
WHAT IS MANAGERIAL ECONOMICS?
It refers to study of those economic theories which are helpful in taking business decisions It is not separate branch of economics.
So it integrates economic theories with business decisions making.
CHARACTERSTICS OF MANAGERIAL ECONOMICS
Helpful in business decision making
More normative than positive economics
Takes help of macro economics in studying economic environment.
Micro in character

SCOPE OF MANAGERIAL ECONOMICSEconomists have different views regarding scope of managerial economics but generally following aspects fall under scope of managerial economics .
Demand analysis and forecasting
Cost analysis
Production and supply analysis
Pricing policies and pricing decisions
Profit management
Business cycles
Inventory management
Advertising
Capital management
ECONOMIC CONCEPTS USED FOR DECISION MAKING
Elasticity of demand- For price determination
TR&TC- For measuring profit level
MR&MC- For finding out equilibrium of firm
Business cycles- For understanding market conditions

Student of Rai Business School-New Delhi

Sanjeev Kumar Singh