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