Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 2K views

    Assignment 1 Economics

    Uploaded by

    mohinig88
    Managerial economics applies economic theory and principles to business decision making in order to help managers make optimal choices in an environment of scarce resources and uncertainty. It bridges the gap between abstract economic theory and practical business management by using concepts like profit, demand, cost, pricing, production, and competition to analyze problems and throw light on issues facing business executives. The primary functions of management are decision making and forward planning, and managerial economics aids this process by considering how economic analysis can be applied to solve business problems.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Assignment 1 Economics

    Uploaded by

    mohinig88
    2K views4 pages
    Managerial economics applies economic theory and principles to business decision making in order to help managers make optimal choices in an environment of scarce resources and uncertainty. It bridges the gap between abstract economic theory and practical business management by using concepts like profit, demand, cost, pricing, production, and competition to analyze problems and throw light on issues facing business executives. The primary functions of management are decision making and forward planning, and managerial economics aids this process by considering how economic analysis can be applied to solve business problems.

    Original Description:

    economics assignment

    Original Title

    Assignment 1 economics

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Managerial economics applies economic theory and principles to business decision making in order to help managers make optimal choices in an environment of scarce resources and uncertainty. It bridges the gap between abstract economic theory and practical business management by using concepts like profit, demand, cost, pricing, production, and competition to analyze problems and throw light on issues facing business executives. The primary functions of management are decision making and forward planning, and managerial economics aids this process by considering how economic analysis can be applied to solve business problems.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views4 pages

    Assignment 1 Economics

    Uploaded by

    mohinig88
    Managerial economics applies economic theory and principles to business decision making in order to help managers make optimal choices in an environment of scarce resources and uncertainty. It bridges the gap between abstract economic theory and practical business management by using concepts like profit, demand, cost, pricing, production, and competition to analyze problems and throw light on issues facing business executives. The primary functions of management are decision making and forward planning, and managerial economics aids this process by considering how economic analysis can be applied to solve business problems.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4
    At a glance
    Powered by AI
    The key takeaways are that managerial economics applies economic theory to business decision making and deals with concepts like demand, cost, production, etc. to help managers make decisions in uncertain conditions.

    Managerial economics is defined as 'economics applied in decision making. It is a special branch of economics bridging the gap between abstract theory and managerial practice.'

    Some concepts and principles that managerial economics deals with are profit, demand, cost, supply, pricing, production, competition, business cycles, and national income.

    1

    NATIONAL INSTITUTE OF FASHION TECHNOLOGY


    GANDHINAGAR



    Managerial Economics
    ASSIGNMENT I








    Submitted by:
    JISHITHA.M
    MFM-1




    2
    2) Justify - Managerial Economics is economics applied in decision making.

    Managerial economics is a discipline which deals with the application of economic theory to
    business management. Managerial economics and Business economics are two terms, which at
    times have been used interchange. Of late, however, the term Managerial Economic has become
    more popular and seems to displace progressively the term Business Economics. It deals with the
    use of economic concepts and principles of business decision making.

    Definition of Managerial Economics:
    Managerial Economics is economics applied in decision making. It is a special branch of
    economics bridging the gap between abstract theory and managerial practice. Haynes,
    Mote and Paul.
    Nature of Managerial Economics:
    The primary function of management executive in a business organization is decision
    making and forward planning.
    Decision making and forward planning go hand in hand with each other. Decision
    making means the process of selecting one action from two or more alternative courses of
    action. Forward planning means establishing plans for the future to carry out the decision
    so taken.
    The problem of choice arises because resources at the disposal of a business unit (land,
    labor, capital, and managerial capacity) are limited and the firm has to make the most
    profitable use of these resources.
    The decision making function is that of the business executive, he takes the decision
    which will ensure the most efficient means of attaining a desired objective, say profit
    maximisation. After taking the decision about the particular output, pricing, capital, raw-
    materials and power etc., are prepared. Forward planning and decision-making thus go on
    at the same time.
    A business managers task is made difficult by the uncertainty which surrounds business
    decision-making. Nobody can predict the future course of business conditions. He
    prepares the best possible plans for the future depending on past experience and future
    outlook and yet he has to go on revising his plans in the light of new experience to
    minimise the failure. Managers are thus engaged in a continuous process of decision-
    making through an uncertain future and the overall problem confronting them is one of
    adjusting to uncertainty.
    In fulfilling the function of decision-making in an uncertainty framework, economic
    theory can be, pressed into service with considerable advantage as it deals with a number
    of concepts and principles which can be used to solve or at least throw some light upon
    the problems of business management. E.g. are profit, demand, cost, pricing, production,
    competition, business cycles, national income etc. The way economic analysis can be
    used towards solving business problems, constitutes the subject-matter of Managerial
    Economics.
    Thus in brief we can say that Managerial Economics is both a science and an art


    3


    Managerial economics and decision making

    Economic theory is of considerable help to managers in fulfilling the function of
    decision-making in an uncertainty frame-work.
    This is because economics deals with a number of concepts and principles relating to
    profit, demand, cost, supply, pricing, production, competition,, business cycles, national
    income, etc.,
    This help is enhanced when economics is aided by disciplines like accounting, statistics,
    and mathematics. The two together aid the process of business decision making and
    planning
    The subject-matter of managerial economics revolves around as to how economic
    analysis can be used in solving business problems




    4

    You might also like