Scribd
Upload
2K views10 pages

T.R. Jain & Dr. O.P.Khanna

Managerial economics applies economic theory and quantitative methods to managerial decision making. It provides a link between economic theory and decision sciences by analyzing how managers make decisions. Managerial economics uses concepts from demand analysis, production, costs, inventory, and decision theory to help managers optimize profits, allocate resources efficiently, and make forecasts. It draws from various disciplines to inform business decisions under uncertainty.

Uploaded by

Ankita Kansal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
2K views10 pages

T.R. Jain & Dr. O.P.Khanna

Managerial economics applies economic theory and quantitative methods to managerial decision making. It provides a link between economic theory and decision sciences by analyzing how managers make decisions. Managerial economics uses concepts from demand analysis, production, costs, inventory, and decision theory to help managers optimize profits, allocate resources efficiently, and make forecasts. It draws from various disciplines to inform business decisions under uncertainty.

Uploaded by

Ankita Kansal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 10

T.R. Jain & Dr. O.P.

Khanna
 Managerial economics is the application of
economic theory and quantitative methods
to the managerial decision making
process.
 Managerial economics provides a link
between economic theory and decision
sciences in the analysis of managerial
decision making.
--- Mansfield
 Applied Economic Theory
 Pragmatic
 Multi-disciplinary
 Descriptive and Prescriptive
 Applied Science
 Demand Analysis  Advertising
and Forecasting
 Resource Allocation
 Production Function
 Price System
 Cost Analysis
 Profit Management
 Inventory
Management  Decision Theory
under Uncertainty
 Utilization of Natural and  An Integrating Agent
man –made resources
 Revenue to the
 Solving Economic
Problems
government

 Use of ideas from other


 Social Benefits
Subjects
 Advertising Media
 Variety of Business
Decisions
 Managerial economics has led to the
emergence of monopolies in the free market
economies for the production of some
important products or services.
 It has also led to the emergence of oligopoly
 There is an exploitation of workers by the
undesirable activity of the private business
 Multinational corporations have given rise to
cut-throat competition whereby closing the
future prospects of small business
enterprises.
 Better Management of Resources
 Forecasting
 To maximiswe Profit
 Conceptual as well as Practical
 Researcher
 Taking up Challenging Tasks
 Managerial Economics  Economics
 It involves application of  It deals with the body of
economic principles to the principles itself
the problems  It is both micro-economic
 It is mostly micro- and macro-economic
economic in character
 Its scope is comparatively
wide
 Its scope is narrow  Economic theory
 Managerial Economics hypothesizes economic
adopts, modifies and relationship and builds
reformulates economic economic models
models
 Managerial decision  Economics is
making is much influenced less by
influenced by these human and behavioral
factors considerations, tech
 In Managerial nological factors and
economics , Managerial environmental forces
decisions are taken on  In Micro Economics, on
the basis of uncertainty the prior information,
many things are
considered as given.

You might also like