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Managerial Economics Assignment Help
What is the basic function of the managerial executives of any organization? It is to hypothesize some decision making and forward planning. With the help of the two features running hand in hand can one company cope on the managerial and financial basis in the market? Yes, because the Decision Making and Forward Planning are the basis of everything. Decision making is the process where out of a lot of strategies that can be worked upon to gain the estimated profit; only one strategy is chosen which has the maximum throughput for the given scenario. Forward Planning works as the disaster management strategy for the entire strategy. If the hypothesized strategy blows up, a company can cope up with the help of a back-up plan and that is the Forward Planning Process.
There are various definitions of Managerial Economics:
McNair and Meriam quote "Managerial Economics consists of the use of economic modes of thought to analyze business situation."
Spencer and Siegelman have a different definition of Managerial Economics as "The integration of economic theory with business practice for the purpose of facilitating decision making and forward planning by management."
“Managerial Economics is economics applied in decision making. It is a special branch of economics bridging the gap between abstract theory and managerial practice.” , is what Managerial Economics is defined by Haynes, Mote and Paul,
Objective of Managerial Economics:
- Integrating the economic theory with the business practice.
- Selection of the business area and also the choice of product.
- Applying economical concepts and/or principles for solving business problems.
- Allocation of the lesser resources in a much optimized manner.
- Determining an optimum price and output for a product.
- To make an all-round development of a firm.
- Minimizing the risk and uncertainty.
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