Mind Map Gallery Managerial Economics: Meaning, Microeconomics, and Strategic Insights

Managerial Economics: Meaning, Microeconomics, and Strategic Insights

Dive into the realm of managerial economics with our comprehensive guide. Uncover the meaning and scope of managerial economics, explore its pivotal role in microeconomics, and understand its purposes in strategic business decisions. Delve into the nature of managerial economics, shedding light on the crucial role played by managerial economists. This resource is a valuable asset for business professionals, students, and anyone seeking a deeper understanding of the economic forces shaping managerial decisions.

Edited at 2021-10-10 07:43:38

erika macquiniana

Managerial Economics: Meaning, Microeconomics, and Strategic Insights

erika macquiniana

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Outline

Managerial Economics

Purposes

To optimize decision making when the firm is faced with problems or obstacles, with the consideration of macro and microeconomic theories and principles.

To analyze the possible effects and implications of both short and long-term planning decisions on the revenue and profitability of the business.

Meaning

Application of the different economic methods and theories

Combination of theories and business to ease decision-making and for the future planning

Solving business problems and decision-making by utilizing economic principles

Scope

1.What to produce?

Society must decide what goods and services should be produced in the economy

2.How to produce?

Question on the production method that will be used to produce the goods and services.

3.For whom to produce?

It is about the market for the goods.

Economics

Study on proper of scarce resources to satisfy the unlimited wants

The Role of Managerial Economist

Studies the economic patters at macro-level and analysis

Examine the probabilities of transforming an ever-changing economic environment into profitable business avenues

Assists the business planning process of a firm

Carries cost-benefit analysis

Assists the management in the decisions

Analyze changes in macro-economic indicators

Advising the management

Makes an economic analysis on the firms in competition. Collect economic data and examine all crucial information about environment in which the firms operates

Conduct detailed research on industrial market and Conduct an elaborate statistical analysis

Macroeconomics

Economic environment

Economic conditions

Gross Domestic Product (GDP)

Government Policies

Social environment

Society in Organization

Employment Conditions

Trade Unions

Consumers Cooperatives

Political environment

Political system

Authoritarian

Democratic

Microeconomics

Application of demand analysis to the real world situation.y

For fixing the price of the products managers applies the pricing theories, cost, and revenue theories of microeconomics

Decisions regarding production can be determined with the knowledge of theory of production.

Determination of price and output is possible with acquaintance of market structures and approaches pertinent

The Nature of Managerial Economics

Managerial Economics is a Science

A scientific body of knowledge based on methodical observation

Policies are made after persistent testing and trailing

Its principles are universally applicable

Managerial Economics is an Art

Economist required to have an art or utilizing his capability, knowledge, and understanding

Managerial Economics for administration of organization

Managerial Economics is helpful in optimum resource allocation

Managerial Economics has components of microeconomics and macroeconomics

Managerial Economics is dynamic in nature