MANAGERIAL ECONOMICS

Managerial Economics refers to that branch of economic which is related with the application of various laws, theories and methods of economic to the business decision-making by the business manager.

DEFINITIONS OF MANAGERIAL ECONOMICS

ACCORDING TO JOEL DEAN

“The purpose of Managerial Economic is to show how economic analysis can be used in formulating business policies.”

ACCORDING TO E. MANSFIELD

“Managerial Economics is concerned with the application of economic concepts and economic analysis to the problems of formulating rational managerial decision.”

ACCORDING TO M.H SPENCER AND L. SEIGELMAN

“Managerial Economics is the integration of economics theory with business practice for the purpose of facilitating decision- making and forward planning by management.”

ACCORDING TO MC NAIR AND MERIAM

“Managerial Economics deals with the use of economic modes of thought to analyse business situation.”

ACCORDING TO BRIGHAM AND PAPPAS

“Managerial Economic is the application of economic theory and methodology to business administrative practices.”

ACCORDING TO HAGUE

“Managerial Economics is a fundamental academic subject which seeks to understand and analyse the problems of business decision- making.”

ACCORDING TO E.J. DOUGLAS

“Managerial Economic is concerned with the application of economic theory and methodology to business administrative practice.”

Thus, it is that branch of Economics which helps any business manager in making various business decisions so that the goals of the business are achieved or attained by the use of scarce resources which are available to the business manager. It facilitates forward planning of any business. It enables a business manager to solve the problems of his business and achieve the goals of his business through an efficient, well-planned and co-ordinated management based on economic theory.

It has been given different names by different authors like:

• Business Economics
• Economics of Business Management
• Economics of Firm and Industry
• Economics for Managers
• Economics of Business Decisions
• Economics of Business Enterprises
• Economic Analysis of Business Management
• Applied Business Economics.

Also Study	Also Study	Also Study	Also Study
Theory of Demand	Law of Demand	Demand Function	Exceptions of law of demand
Elasticity of demand	Change in demand	Price elasticity of demand	Law of demand Vs Elasticity of demand
Factors affecting price elasticity of demand	Production function	Short run vs long run production function	Law of variable proportions
Types of demand	Managerial economics	Characteristics of managerial economics	Scope of managerial economics
Utility analysis	Law of diminishing marginal utility	Law of equi marginal utility	Consumers Equilibrium
Indifference curve analysis	Consumer equilibrium using indifference curve analysis	Relationship between TP, AP and MP	Law of increasing returns
Law of diminishing returns	Law of constant returns	Returns to Scale	Economies and diseconomies of scale
Concept of costs	Relationship between AC and MC	Traditional theory of costs	Modern theory of costs
Explicit vs Implicit costs	Revenue	Perfect competition	Monopoly
Price discrimination	Difference between perfect competition and monopoly	Perfect Vs Monopolistic competition	Monopoly and monopolistic competition
Product differentiation strategy	Monopolistic competition	National Income in India	Measurement of national income in India
Consumption function	Keynes Psychological law of consumption