Meaning and scope of managerial economics

Pricing decisions, policies and practices: Pricing is a very important area of Managerial Economics.

Nature and scope of managerial economics in hindi

Macro-economies is also related to managerial economics. Industry and Trade Policies of Govt. The managers can use various managerial economics tools such as production and cost analysis for hiring and acquiring of inputs , project appraisal methods for long term investment decisions ,etc for making these crucial decisions. Related Articles:. Some of the important relevant questions in this connection are as follows: i What should be the production schedule for the coming year? Investments are made in the plant and machinery and buildings which are very high. A successful business manager is one who can form more or less correct estimates of costs and revenues at different levels of output. Thus, situational comparability is an essential element of this method. The concept of profit maximisation is very useful in selecting the alternatives in making a decision at the firm level.

To conclude, a managerial economist should enlarge the area of certainty. The managerial economist can put even the most sophisticated ideas in simple language and avoid hard technical terms.

For example, sampling is very useful in data collection. The role of the managerial economist is not to take decisions but to analyse, conclude and recommend.

17 explain the scope of managerial economics

Managerial economics touches these aspects of cost analysis as an effective knowledge and the application of which is corner stone for the success of a firm. Economics is neutral between ends.

The money expenses incurred in the process of production constitute the cost of production. Cost and production analysis Estimation of the cost in production. Thus, the managerial economics 1.

In fact, profit-planning and profit measurement constitute the most challenging area of Managerial Economics. In this context, it is essential for the managerial economist to engage in model building.

The managerial economist should recognise his responsibilities to make successful forecast. The most important obligations of a managerial economist is that his objective must coincide with that of the business. The way economic analysis can be used towards solving business problems, constitutes the subject-matter of Managerial Economics.

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Scope of Managerial Economics