Managerial Economics
Scope Of Managerial Economics
Strategic Planning
Theory of Demand and Demand Forecasting
Cost Analysis
Resource Allocation
Profit Analysis
Capital/Investment Analysis
Operational/Internal
Scope Of Managerial Economics
Trends In Working Of Financial Institutions
Magnitude and Trend In Foreign Trade
General Trends In Production
Trend In Labor Market
Type Of Economic System
Government Economic Policies
Environmental/External
Characteristics Of Managerial Economics
Application of Managerial Economics
7 Applications
Selection of location to produce & sell goods &
services.
Promotional strategy & activities.
Determination of Best Price and Quantity Combination
Selection of product & services to be produced
Choice Of Resource Combination
Selecting of investible funds.
Choice Of Production Method
- Normative
economics
- Pragmatic
- Optimal
solution
- Uses theory
of firms
- Science as
well as art.
7.Takes Help Of Macro Economics
- Micro
economics.
- Management
Oriented.
Concepts And Theories Used In Managerial Economics
Concepts
Theories
Cost
Competition
Supply
Market Structures
Demand
Theory of Cost
Theory of Consumer
Behavior
Theory of Markets &
Pricing
Theory of Profit (
Distribution
Theory of Firms
Role of Managerial Economist
- Conducting elaborate statistical analysis
- Providing Economic Information
- Conducting research on industrial market.
- Making Research reports
- Making decisions regarding allocation of
organisational resources.
- Analyzing Changes In Macro-Economic Indicators
- Carrying cost-benefit analysis.
- Advicing the management on public relations,
foreign exchange, and trade.
- Assisting startegic business planning.
- Undertaking economic analysis of competitors.
- Examining probabilities of transforming business.
- Analyzing macro economic patterns and its
effects on firms
Importance Of Managerial Economics
- Useful In Demand forcasting.
- Useful in Coordination of Business Activities
- Helpful in Profit Planning and Control
- Helpful for Business Prediction
- Helpful in Cost Control
- Helpful in Price Determination.
- Help in Business Planning
- Helpful in Solutions of Business Taxation
Problems.
- Helpful in Chalking Out Business Policies
- Useful in Understanding the mechanism of
Economic System
- Useful in Business Organization