weigelt trefor microeconomic disaggregated lazear baumol wiens vassilis econometrics socioeconomics managerial 7800 jel hirano optimum prescriptive cached ahsan computational digitization keisuke bhat pricing rau estimations heterodox budgeting microeconomics undergraduates trivedi
discuss the significance of managerial economics in today's economic era
Managerial Economics - wikipedia Managerial Economics Economics A supply and demand diagram , illustrating the effects of an increase in demand Index Outline History Branches Classification History of economics Schools of economics Mainstream economics Heterodox economics Economic methodology Economic theory Political economy Microeconomics Macroeconomics International economics Applied economics Mathematical economics Econometrics JEL classification codes Concepts Theory Techniques Economic systems Economic growth Market National accounting Experimental economics Computational economics Game theory Operations research By application Agricultural Behavioral Business Cultural Demographic Development Digitization Ecological Education Engineering Environmental Evolutionary Expeditionary Economic geography Financial Health Economic history Industrial organization Information Institutional Knowledge Labour Law Managerial Monetary Natural resource Organizational Personnel Economic policy Public economics Public / Social choice Regional Rural Service Socioeconomics Economic sociology Economic statistics Urban Welfare Welfare economics Lists Economists Publications ( journals ) Glossary Glossary of economics Business and economics portal Managerial economics deals with the application of the economic concepts , theories , tools and methodologies to solve practical problems in a business.it helps the manager in decision making and acts as a link between practice and theory `` . It is sometimes referred to as business economics and is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units . As such , it bridges economic theory and economics in practice . It draws heavily from quantitative techniques such as regression analysis , correlation and calculus . If there is a unifying theme that runs through most of managerial economics , it is the attempt to optimize business decisions given the firm 's objectives and given constraints imposed by scarcity , for example through the use of operations research , mathematical programming , game theory for strategic decisions , and other computational methods . Contents ( hide ) 1 Overview 2 Scope 3 Demand decision 4 See also 4.1 Journals 5 Notes 6 References 7 External links Overview ( edit ) Managerial decision areas includes : assessment of investible funds selecting business area choice of product determining optimum output sales promotion . Almost any business decision can be analyzed with managerial economics techniques , but it is most commonly applied to : Risk analysis -- various models are used to quantify risk and asymmetric information and to employ them in decision rules to manage risk . Production analysis -- microeconomic techniques are used to analyze production efficiency , optimum factor allocation , costs , economies of scale and to estimate the firm 's cost function . Pricing analysis -- microeconomic techniques are used to analyze various pricing decisions including transfer pricing , joint product pricing , price discrimination , price elasticity estimations , and choosing the optimum pricing method . Capital budgeting -- investment theory is used to examine a firm 's capital purchasing decisions . At universities , the subject is taught primarily to advanced undergraduates and graduate business students . It is approached as an integration subject . That is , it integrates many concepts from a wide variety of prerequisite courses . In many countries it is possible to read for a degree in Business Economics which often covers managerial economics , financial economics , game theory , business forecasting and industrial economics . Scope ( edit ) Managerial economics to a certain degree is prescriptive in nature as it suggests course of action to a managerial problem . Problems can be related to various departments in a firm like production , accounts , sales , etc . ( a ) Operational issues Demand decision Production decision Theory of exchange or price theory All human economic activity ( b ) Environmental issues Nature and trend of domestic business / international environment nature and impact of social costs and government policy Demand decision ( edit ) Demand is the willingness of potential customers to buy a commodity . It defines the market size for a commodity , and at a disaggregated level the composition of the customer base . Analysis of demand is important for a firm as its revenue , profits , and income of its employees depend on it . See also ( edit ) Business economics Personnel economics Management science Journals ( edit ) Computational Economics . Aims and scope . Journal of Economics & Management Strategy . Aims and scope . Managerial and Decision Economics Notes ( edit ) Jump up ^ W.B. Allen , Managerial Economics Theory , Applications , and Cases , 7th Edition . Norton . Contents . Jump up ^ William J. Baumol ( 1961 ) . `` What Can Economic Theory Contribute to Managerial Economics ? , '' American Economic Review , 51 ( 2 ) , pp. 142 - 46 . Abstract . Ivan Png and Dale Lehman ( 2007 , 3rd ed . ) . Managerial Economics . Wiley . Description and chapter - preview links . M.L. Trivedi ( 2002 ) . Managerial Economics : Theory & Applications , 2nd ed. , Tata McGraw - Hill . Chapter - preview links . Jump up ^ NA ( 2009 ) . `` managerial economics , '' Encyclopædia Britannica . Cached online entry . Jump up ^ Carl Shapiro ( 1989 ) . `` The Theory of Business Strategy , '' RAND Journal of Economics , 20 ( 1 ) , pp. 125 - 137 . Thomas J. Webster ( 2003 ) . Managerial Economics : Theory and Practice , ch. 13 & 14 , Academic Press . Description . Jump up ^ For a journal on the last subject , see Computational Economics , including an Aims & Scope link . Jump up ^ James O. Berger ( 2008 ). `` statistical decision theory , '' The New Palgrave Dictionary of Economics , 2nd Edition . Abstract . Keisuke Hirano ( 2008 ) . `` decision theory in econometrics , '' The New Palgrave Dictionary of Economics , 2nd Edition . Abstract . Vassilis A. Hajivassiliou ( 2008 ) . `` computational methods in econometrics , '' The New Palgrave Dictionary of Economics , 2nd Edition . Abstract . Jump up ^ Trefor Jones ( 2004 ) . Business Economics and Managerial Decision Making , Wiley . Description and chapter - preview links . Nick Wilkinson ( 2005 ) . Managerial Economics : A Problem - Solving Approach , Cambridge University Press . Description and preview . Maria Moschandreas ( 2000 ) . Business Economics , 2nd Edition , Thompson Learning . Description and chapter - preview links . Jump up ^ Prof. M.S. BHAT , and mk RAU. Managerial economic and financial analysis. Hyderabad. ISBN 978 - 81 - 7800 - 153 - 1 References ( edit ) Alan Hughes ( 1987 ) . `` managerial capitalism , '' The New Palgrave : A Dictionary of Economics , v. 3 , pp. 293 -- 96 . Edward Lazear ( 2008 ) . `` personnel economics , '' The New Palgrave Dictionary of Economics . 2nd Edition . Abstract . Keith Weigelt ( 2006 ) . Managerial Economics Elmer G. Wiens The Public Firm with Managerial Incentives Khan Ahsan ( 2014 ) . `` Managerial Economics and Economic Analysis '' , 3rd edition , Pakistan . arya sri. `` managerial economics '' : MEFA . ( 2015 ) . External links ( edit ) http://www.edushareonline.in/Management/eco%20new.pdf http://www.swlearning.com/economics/hirschey/managerial_econ/chap01.pdf Retrieved from `` https://en.wikipedia.org/w/index.php?title=Managerial_economics&oldid=844199342 '' Categories : Management Business economics Talk Contents About Wikipedia Català Español فارسی हिन्दी Bahasa Indonesia Italiano Norsk ភាសា ខ្មែរ Português Suomi Tagalog اردو Tiếng Việt 5 more Edit links This page was last edited on 3 June 2018 , at 09 : 15 . Text is available under the Creative Commons Attribution - ShareAlike License ; additional terms may apply . By using this site , you agree to the Terms of Use and Privacy Policy . Wikipedia ® is a registered trademark of the Wikimedia Foundation , Inc. , a non-profit organization . 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