Introduction To Managerial Economic Science - Costless Written Report Notes

Nature of Managerial Economics

Managerial Economics too Business economic science are the ii terms, which, at times receive got been used interchangeably. Of late, however, the term Managerial Economics has acquire to a greater extent than pop too seems to flaming progressively the term Business Economics.

blogspot.com//search?q=decision-making-process-in-management">decision making too forrard planning. Decision Making agency the procedure of selecting i activity from ii or to a greater extent than alternative courses of activity whereas forrard planning agency establishing plans for the future. The inquiry of selection arises because resources such equally blogspot.com//search?q=decision-making-process-in-management">capital, blogspot.com//search?q=decision-making-process-in-management">land, blogspot.com//search?q=decision-making-process-in-management">labour too blogspot.com//search?q=decision-making-process-in-management">management are limited too tin live employed inward alternative uses. The determination making business office thus becomes i of making choices or decisions that volition provide the most efficient agency of attaining a desired end, say, turn a profit maximization. Once determination is made close the exceptional goal to live achieved, plans equally to production, pricing, capital, raw materials, labour, etc., are prepared. Forward planning thus goes manus inward manus with determination making.

A pregnant feature of the conditions, inward which occupation concern organizations piece of work too receive got decisions, is uncertainty. And this fact of uncertainty non entirely makes the business office of determination making too forrard planning complicated but adds a unlike dimension to it. If knowledge of the futurity were perfect, plans could live formulated without fault too hence without whatever demand for subsequent revision. In the existent world, however, the occupation concern managing director rarely has consummate information too the estimates close futurity predicted equally best equally possible. As plans are implemented over time, to a greater extent than facts acquire known so that inward their light, plans may receive got to live revised, too a unlike class of activity adopted. Managers are thus engaged inward a continuous procedure of determination making through an uncertain futurity too the overall job confronting them is i of adjusting to uncertainty.

In fulfilling the business office of determination making inward an uncertainty framework, economical theory tin live pressed into service with considerable advantage. Economic theory deals with a number of concepts too principles relating, for example, to profit, demand, cost, pricing production, competition, occupation concern cycles, national income, etc., which aided past times allied disciplines similar Accounting. Statistics too Mathematics tin live used to solve or at to the lowest degree throw roughly low-cal upon the problems of occupation concern management. The way economical analysis tin live used towards solving occupation concern problems. Constitutes the dependent affair of Managerial Economics.

Definition of Managerial Economics

According to McNair too Meriam, "Managerial Economics consists of the usage of economical modes of thought to analyse occupation concern situation."

Spencer too Siegelman receive got defined Managerial Economics equally "The integration of economical theory with occupation concern practise for the purpose of facilitating determination making too forrard planning past times management."

We may, thus define Managerial Economics equally the dependent area which deals with the application of economical theory to occupation concern management. Managerial Economics thus lies on the borderline betwixt economic science too occupation concern management too serves equally a duad betwixt economic science too occupation concern management.

Chart 1 – Economics, Business Management too Managerial Economics.

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Application of Economics to Business Management

The application of economic science to occupation concern management or the integration of economical theory with occupation concern practice, equally Spencer too Siegelman receive got set it, has the next aspects :-

1. Reconciling traditional theoretical concepts of economic science inward relation to the actual occupation concern demeanor too conditions. In economical theory, the technique of analysis is i of model edifice whereby sure enough assumptions are made too on that basis, conclusions equally to the demeanor of the firms are drown. The assumptions, however, brand the theory of the occupation solid unrealistic since it fails to provide a satisfactory explanation of that what the firms truly do. Hence the demand to reconcile the theoretical principles based on simplified assumptions with actual occupation concern practise too develops appropriate extensions too reformulation of economical theory, if necessary.
2. Estimating economical relationships, viz., measuring of diverse types of elasticities of demand such equally cost elasticity, income elasticity, cross-elasticity, promotional elasticity, cost-output relationships, etc. The estimates of these economical relationships are to live used for purposes of forecasting.
3. Predicting relevant economical quantities, eg., profit, demand, production, costs, pricing, capital, etc., inward numerical terms together with their probabilities. As the occupation concern managing director has to piece of work inward an surroundings of uncertainty, futurity is to live predicted so that inward the low-cal of the predicted estimates, determination making too forrard planning may live possible.
4. Using economical quantities inward determination making too forrard planning, that is, formulating occupation concern policies and, on that basis, establishing occupation concern plans for the futurity pertaining to profit, prices, costs, capital, etc. The nature of economical forecasting is such that it indicates the grade of probability of diverse possible outcomes, i.e. losses or gains equally a outcome of next each i of the strategies available. Hence, earlier a occupation concern managing director at that spot exists a quantified painting present indicating the number o courses open, their possible outcomes too the quantified probability of each outcome. Keeping this painting present inward view, he decides close the strategy to live chosen.
5. Understanding pregnant external forces constituting the surroundings inward which the occupation concern is operating too to which it must adjust, e.g., occupation concern cycles, fluctuations inward national income too authorities policies pertaining to populace finance, financial policy too taxation, international economic science too unusual trade, monetary economics, labour relations, anti-monopoly measures, industrial licensing, cost controls, etc. The occupation concern managing director has to appraise the relevance too impact of these external forces inward relation to the exceptional occupation concern unit of measurement too its occupation concern policies.

Characteristics of Managerial Economics

It would live useful to dot out sure enough main characteristics of Managerial Economics, inward equally much it’s they throw farther low-cal on the nature of the dependent affair too assist inward a clearer agreement thereof.

1. Managerial Economics is micro-economic inward character.
2. Managerial Economics largely uses that body of economical concepts too principles, which is known equally 'Theory of the firm' or 'Economics of the firm'. In addition, it also seeks to apply Profit Theory, which forms portion of Distribution Theories inward Economics.
3. Managerial Economics is pragmatic. It avoids hard abstract issues of economical theory but involves complications ignored inward economical theory to human face the overall province of affairs inward which decisions are made. Economic theory appropriately ignores the diversity of backgrounds too preparation found inward private firms but Managerial Economics considers the exceptional surroundings of determination making.
4. Managerial Economics belongs to normative economic science rather than positive economic science (also sometimes known equally Descriptive Economics). In other words, it is prescriptive rather than descriptive. The main body of economical theory confines itself to descriptive hypothesis, attempting to generalize close the relations alongside unlike variables without judgment close what is desirable or undesirable. For instance, the constabulary of demand states that equally cost increases. Demand goes downward or vice-versa but this tilt does non tell whether the outcome is skillful or bad. Managerial Economics, however, is concerned with what decisions ought to live made too hence involves value judgments.

Production too Supply

Production analysis is narrower inward reach than cost analysis. Production analysis often proceeds inward physical terms patch cost analysis proceeds inward monetary terms. Production analysis mainly deals with unlike production functions too their managerial uses.

Supply analysis deals with diverse aspects of provide of a commodity. Certain of import aspects of provide analysis are provide schedule, curves too function, constabulary of provide too its limitations. Elasticity of provide too Factors influencing supply.

Pricing Decisions, Policies too Practices

Pricing is a really of import surface area of Managerial Economics. In fact, cost is the ness of the revenue of a occupation solid too equally such the success of a occupation concern occupation solid largely depends on the correctness of the prices decisions taken past times it. The of import aspects dealt with nether this surface area are :- Price Determination inward diverse Market Forms, Pricing methods, Differential Pricing, Product-line Pricing too Price Forecasting.

Profit Management

Business firms are by too large organized for the purpose of making profits and, inward long run, profits provide the main mensurate of success. In this connection, an of import dot worth considering is the chemical element of uncertainty exiting close profits because of variations inward costs too revenues which, inward turn, are caused past times body both internal too external to the firm. If knowledge close the futurity were fact, turn a profit analysis would receive got been a really tardily task. However, inward a Blue Planet of certainty, expectations are non e'er realized so that turn a profit planning too measuring constitute the hard are of Managerial Economics. The of import acts covered nether this surface area are :- Nature too Measurement of Profit, Profit Testing too Techniques of Profit Planning similar Break-Even Analysis.

Capital Management

Of the diverse types too classes of occupation concern problems, the most complex too able roughly for the occupation concern managing director are probable to live those relating to the firm’s investments. Relatively large sums are involved, too the problems are so complex that their disposal non entirely requires considerable fourth dimension too labour but is a term for top-level decision. Briefly, upper-case missive of the alphabet management implies planning too trolls of upper-case missive of the alphabet expenditure. The main topics dealt with are :- Cost of Capital, Rate render too Selection of Project.

The diverse aspects outlined higher upwardly stand upwardly for the major uncertainties which a ness occupation solid has to reckon with, viz., demand uncertainty, cost uncertainty, cost certainty, turn a profit uncertainty, too upper-case missive of the alphabet uncertainty. We can, therefore, conclude the dependent affair of Managerial Economic consists of applying economical cripples too concepts towards adjusting with diverse uncertainties faced past times a ness firm.

Managerial Economics too Other Subjects

Yet roughly other useful method of throwing low-cal upon the nature too reach of Managerial Economics is to examine its human relationship with other subjects. In this connection, Economics, Statistics, Mathematics too Accounting deserve special mention.

Managerial Economics too Economics

Managerial Economics has been described equally economic science applied to determination making. It may live viewed equally a special branch of economic science bridging the gulf betwixt pure economical theory too managerial practice.

Economics has ii main divisions :- (i) blogspot.com//search?q=decision-making-process-in-management">Microeconomics too (ii) Macroeconomics. Microeconomics has been defined equally that branch of economic science where the unit of measurement of study is an private or a firm. Macroeconomics, on the other hand, is aggregate inward grapheme too has the entire economic scheme equally a unit of measurement of study.

Microeconomics, also known equally cost theory (or Marshallian economics) is the main origin of concepts too analytical tools for managerial economics. To illustrate diverse micro-economic concepts such equally elasticity of demand, marginal cost, the curt too the long runs, diverse marketplace forms, etc., all are of slap-up significance to managerial economics. The main contribution of macroeconomics is inward the surface area of forecasting. The modern theory of income too work has straight implications for forecasting full general occupation concern conditions. As the prospects of an private occupation solid often depend greatly on full general occupation concern conditions, private occupation solid forecasts depend on full general occupation concern forecasts.

A survey inward the U.K has shown that occupation concern economists receive got found the next economical concepts quite useful too of frequent application :-

1. Price elasticity of demand,
2. Income elasticity of demand,
3. Opportunity cost,
4. The multiplier,
5. Propensity to consume,
6. Marginal revenue product,
7. Speculative motive,
8. Production function,
9. Balanced growth, and
10. Liquidity preference.

Business economic science receive got also found the next main areas of economic science equally useful inward their piece of work :-

1. Demand theory,
2. Theory of the firm-price, output too investment decisions,
3. Business financing,
4. Public finance too financial policy,
5. Money too banking,
6. National income too social accounting,
7. Theory of international trade, and
8. Economics of developing countries.

Managerial Economics too Management Accounting

Managerial Economics is also closely related to accounting, which is concerned with recording the financial operations of a occupation concern firm. Indeed, accounting information is i of the principal sources of information required past times a managerial economist for his determination making purpose. For instance, the turn a profit too loss tilt of a occupation solid tells how good the occupation solid has done too the information it contains tin live used past times managerial economist to throw pregnant low-cal on the futurity class of activity - whether it should improve or unopen down. Of course, accounting information telephone phone for careful interpretation. Recasting too adjustment earlier they tin live used safely too effectively.

It is inward this context that the growing link betwixt management accounting too managerial economic science deserves special mention. The main task of management accounting is at nowadays seen equally beingness to provide the form of information which managers demand if they are to apply the ideas of managerial economic science to solve occupation concern problems correctly; the accounting information are also to live provided inward a cast so equally to gibe easily into the concepts too analysis of managerial economics.

Uses of Managerial Economics

Managerial economic science accomplishes several objectives.

First, it presents those aspects of traditional economics, which are relevant for occupation concern determination making it existent life. For the purpose, it calls from economical theory the concepts, principles too techniques of analysis which receive got a bearing on the determination making process. These are, if necessary, adapted or modified with a sentiment to enable the managing director receive got improve decisions. Thus, managerial economic science accomplishes the objective of edifice suitable tool kit from traditional economics.

Secondly, it also incorporates useful ideas from other disciplines such a psychology, sociology, etc., if they are found relevant for determination making. In fact managerial economic science takes the assistance of other academic disciplines having a bearing upon the occupation concern decisions of a managing director inward sentiment of the carious explicit too implicit constraints dependent to which resources allotment is to live optimized.

Thirdly, managerial economic science helps inward reaching a diversity of occupation concern decisions.

1. What products too services should live produced?
2. What inputs too production techniques should live used?
3. How much output should live produced too at what prices it should live sold?
4. What are the best sizes too locations of novel plants?
5. How should the available upper-case missive of the alphabet live allocated?

Fourthly, managerial economic science makes a managing director a to a greater extent than competent model builder. Thus he tin capture the essential relationships which characterize a province of affairs patch leaving out the cluttering details too peripheral relationships.

Fifthly, at the flat of the firm, where for diverse functional areas functional specialists or functional departments exist, e.g., finance, marketing, personal production, etc., managerial economic science serves equally an integrating agent past times coordinating the unlike areas too bringing to behave on the decisions of each subdivision or specialist the implications pertaining to other functional areas. It thus enables occupation concern determination making non inward watertight compartments but inward an integrated perspective, the significance of which lies inward the fact that the functional departments or specialists often savor considerable autonomy too attain conflicting coals.

Finally, managerial economic science takes cognizance of the interaction betwixt the occupation solid too monastic tell too accomplishes the fundamental role of occupation concern equally an agent inward the attainment of social too economical welfare. It has come upwardly to live realized that occupation concern portion from its obligations to shareholders has sure enough social obligations. Managerial economic science focuses attending on these social obligations equally constraints dependent to which occupation concern decisions are to live taken. In so doing, it serves equally an musical instrument inward rehiring the economical welfare of the monastic tell through socially oriented occupation concern decisions.

Role too Responsibilities of Managerial Economist

A managerial economist tin play a really of import role past times assisting the Management inward using the increasingly specialized skills too sophisticated techniques which are required to solve the hard problems of successful determination making too forrard planning. That is why, inward occupation concern concerns, his importance is beingness growingly recognized. In developed countries similar the U.S.A., large companies employ i or to a greater extent than economists. In our province (India) too, large industrial houses receive got come upwardly to recognize the demand for managerial economists, too at that spot are frequent advertisements for such positions. Tatas too Hindustan Lever employ economists. Indian Petrochemicals Corporation Ltd., a Government of Republic of Republic of India undertaking, also keeps an economist.

Let us examine inward specific terms how a managerial economist tin contribute to determination making inward business.

In this connection, ii of import questions demand live considered :-

1. What role does he play inward business, that is, what exceptional management problems lend themselves to solution through economical analysis?
2. How tin the managerial economist best serve management, that is, what are the responsibilities of a successful managerial economist?

Role of Managerial Economist

One of the principal objectives of whatever management inward its determination making procedure is to determine the fundamental factors which volition influence the occupation concern over the catamenia ahead. In general, these factors tin live divided into ii category, viz., (i) External too (ii) Internal. The external factors prevarication exterior the command management because they are external to the occupation solid too are said to constitute occupation concern environment. The internal factors prevarication inside the reach too operations of a occupation solid too hence inside the command of management, too they are known equally occupation concern operations.

To illustrate, a occupation concern occupation solid is costless to receive got decisions close what to invest, where to invest, how much labour to employ too what to pay for it, how to cost its products too so on but all these decisions are taken inside the framework of a exceptional occupation concern surroundings too the firm’s grade of liberty depends on such factors equally the government’s economical policy, the actions of its competitors too the like.

Environmental Studies

An analysis too forecast of external factors constituting full general occupation concern conditions, e.g., prices, national income too output, book of trade, etc., are of slap-up significance since every occupation concern from is affected past times them.

Certain of import relevant questions inward this connexion are equally follows :-

1. What is the outlook for the national economy? What are the most of import local, regional or worldwide economical trends? What stage of the occupation concern cycle lies forthwith ahead?
2. What close population shifts too the resultant ups too downs inward regional purchasing power?
3. What are the demands prospects inward novel equally good equally established markets? Will changes inward social demeanor too fashions tend to expand or bound the sales of a company’s products, or mayhap brand the products obsolete?
4. Where are the marketplace too client opportunities probable to expand or contract most rapidly?
5. Will overseas markets expand or contract, too how volition novel unusual authorities legislation’s impact functioning of the overseas plants?
6. Will the availability too cost of credit tend to increment or decrease buying? Are coin or credit weather ahead probable to live tardily or tight?
7. What the prices of raw materials too finished products are probable to be?
8. Is contest probable to increment or decrease?
9. What are the main components of the five-year plan? What are the areas where outlays receive got been increased? What are the segments, which receive got suffered a cutting inward their outlay?
10. What is the outlook regarding government’s economical policies too regulations?
11. What close changes inward defense forcefulness expenditure, taxation rates, tariffs too import restrictions?
12. Will Reserve Bank’s decisions receive or depress industrial production too consumer spending? How volition these decisions impact the company’s cost, credit, sales too profits?

Reasonably accurate answers to these too similar questions tin enable management to chalk out to a greater extent than wisely the reach too management of their ain occupation concern plans too to determine the timing of their specific actions. And it is these questions which introduce roughly of the areas where a managerial economist tin brand effective contribution.

The managerial economist has non entirely to study the economical trends at the macro flat but must also translate their relevance to the exceptional manufacture / occupation solid where he works. He has to digest the ever growing economical literature too propose transcend management past times agency of short, occupation concern similar practical notes.

In a mixed economic scheme similar India, the managerial economist pragmatically interprets the intentions of controls too evaluates their impact. He acts equally a duad betwixt the authorities too the industry, translating the government’s intentions too transmitting the reactions of the industry. In fact, authorities policies accuse out of the performance of industry, the expectations of the people too political expediency.

Business Operations

A managerial economist tin also live helpful to the management inward making decisions relating to the internal operations of a occupation solid inward abide by of such problems equally price, charge per unit of measurement of operations, investment, expansion or contraction.

Certain relevant questions inward this context would live equally follows :-

1. What volition live a reasonable sales too turn a profit budget for the side past times side year?
2. What volition live the most appropriate production Schedules too inventory policies for the side past times side vi months?
3. What changes inward wage too cost policies should live made now?
4. How much cash volition live available side past times side calendar month too how should it live invested?

Specific Functions

A farther thought of the role of managerial economists tin live seen from the next specific functions performed past times them equally revealed past times a survey pertaining to UK of Britain too Northern Republic of Ireland conducted past times K.J.W. Alexander too Alexander G. Kemp :-

1. Sales forecasting.
2. Industrial marketplace research.
3. Economic analysis of competing companies.
4. Pricing problems of industry.
5. Capital projects.
6. Production programs.
7. Security/investment analysis too forecasts.
8. Advice on merchandise too populace relations.
9. Advice on primary commodities.
10. Advice on unusual exchange.
11. Economic analysis of agriculture.
12. Analysis of underdeveloped economics.
13. Environmental forecasting.

The managerial economist has to assemble economical data, analyze all pertinent information close the occupation concern surroundings too fix seat papers on issues facing the occupation solid too the industry. In the instance of industries prone to rapid technological advances, he may receive got to brand a continuous assessment of the impact of changing technology. He may receive got to evaluate the upper-case missive of the alphabet budget inward the low-cal of curt too long-range financial, turn a profit too marketplace potentialities. Very often, he may receive got to fix speeches for the corporate executives.

It is thus clear that inward practise managerial economists perform many too varied functions. However, of these, marketing functions, i.e., sales forecasting too industrial marketplace research, has been the most important. For this purpose, they may compile statistical records of the sales performance of their ain occupation concern too those relating to their rivals, send our analysis of these records too study on trends inward demand, their marketplace shares, too the relative efficiency of their retail outlets. Thus patch carrying out their functions; they may receive got to undertake detailed statistical analysis. There are, of course, differences inward the relative importance of the diverse functions performed from occupation solid to occupation solid too inward the grade of sophistication of the methods used inward carrying them out. But at that spot is no doubtfulness that the task of a managerial economist requires alertness too the might to piece of work nether pressure.

Economic Intelligence

Besides these functions involving sophisticated analysis, managerial economist may also provide full general tidings service supplying management with economical information of full general involvement such equally competitors prices too products, taxation rates, tariff rates, etc. In fact, a skillful bargain of published textile is already available too it would live useful for a occupation solid to receive got someone who understands it. The managerial economist tin do the task with competence.

Participating inward Public Debates

Many well-known occupation concern economists participate inward populace debates. Their advice too views are beingness sought past times the authorities too monastic tell alike. Their practical sense inward occupation concern too manufacture ads stature to their views. Their populace recognition enhances their stature inward the organisation itself.

Indian Context

In the indian context, a managerial economist is expected to perform the next functions :-

1. Macro-forecasting for demand too supply.
2. Production planning at macro too micro levels.
3. Capacity planning too product-mix determination.
4. Economics of diverse productions lines.
5. Economic feasibility of novel production lines/processes too projects.
6. Assistance inward preparation of overall evolution plans.
7. Preparation of periodical economical reports bearing on diverse matters such equally the company’s product-lines, futurity growth opportunities, marketplace pricing situation, full general business, too diverse national/international factors affecting manufacture too business.
8. Preparing briefs, speeches, articles too papers for transcend management for diverse Chambers, Committees, Seminars, Conferences, etc.
9. Keeping management informed o diverse national too international developments on economic/industrial matters.

With the adoption of the New Economic Policy, inward 1991, the macro-economic Environment inward Republic of Republic of India is changing fast at a footstep that has been rarely witnessed before. And these changes receive got tremendous implications for business. The managerial economist has to play a much to a greater extent than pregnant role. He has to constantly gauge the possibilities of translating the rapidly changing economical scenario into feasible occupation concern opportunities. As Republic of Republic of India marches towards globalization, he volition receive got to translate the global economical events too detect out how his occupation solid tin avail itself of the carious export opportunities or of establishing plants abroad either wholly owned or inward association with local partners.

Responsibilities of Managerial Economist

Having examined the pregnant opportunities earlier a managerial economist to contribute to managerial determination making, allow us at nowadays examine how he tin best serve the management. For this, he must thoroughly recognize his responsibilities too obligations.

A managerial economist tin serve management best entirely if he e'er keeps inward hear the main objective of his business, viz., to brand a turn a profit on its invested capital. His academic preparation too the critical comments from people exterior the occupation concern may atomic number 82 a managerial economist to adopt an apologetic or defensive mental attitude towards profits. Once management notices this, his effectiveness is almost sure enough to live lost. In fact, he cannot hold off to succeed inward serving management unless he has a strong personal conviction that profits are essential too that his main obligation is to assist get upwardly the might of the occupation solid to brand profits.

Most management decisions necessarily concern the future, which is rather uncertain. It is, therefore, absolutely essential that a managerial economist recognizes his responsibleness to brand successful forecasts. By making best possible forecasts too through constant efforts to improve upon them, he should aim at minimizing, if non completely eliminating, the risks involved inward uncertainties, so that the management tin follow a to a greater extent than orderly class of occupation concern planning. At times, he volition receive got to reassure the management that an of import tendency volition continue; inward other cases, he may receive got to dot out the probabilities of a turning dot inward roughly activity of importance to management. In whatever case, he must live willing to brand considered but fairly positive statements close impending economical developments, based upon the best possible information too analysis too stake his reputation upon his judgment. Nothing volition construct management confidence inward a managerial economist to a greater extent than speedily too thoroughly than a tape of successful forecasts, well-documented inward advance too modestly evaluated when the actual results acquire available.

A few corollaries to the higher upwardly proffer demand also live emphasized here.

First, he has a major responsibleness to "alert management at the earliest possible moment" inward instance he discovers an fault inward his forecast. By promptly drawing attending to changes inward forecasting conditions, he volition non entirely assist management inward making appropriate adjustment inward policies too programs but volition also live able to strengthen his ain seat equally a fellow member of the management squad past times keeping his fingers on the economical pulse of the business.

Secondly, he must flora too maintain many contacts with individuals too information sources, which would non live forthwith available to the other members of the management. Extensive familiarity with reference sources too textile is essential, but it is soundless to a greater extent than of import that he knows individuals who are specialists inward exceptional fields having a bearing on his work. For this purpose, he should bring together professional person associations too receive got active portion inward them. In fact, i of the best agency of determining the caliber of a managerial economist is to evaluate his might to obtain information speedily past times personal contacts rather than past times lengthy inquiry from either readily available or obscure reference sources. Within whatever business, at that spot may live a wealth of knowledge too sense but the managerial economist would live truly useful if he tin supplement the existing know-how with additional information too inward the quickest possible manner.

Again, if a managerial economist is to live truly helpful to the management inward successful determination making too forrard planning, he must live able to earn total status on the occupation concern team. He should live fix too fifty-fifty offering himself to receive got upwardly special assignments, live that inward study teams, committees or special projects. For, a managerial economist tin entirely business office effectively inward an atmosphere where his success or failure tin live traced non entirely to his basic ability, preparation too experience, but also to his personality too capacity to win continuing back upwardly for himself too his professional person ideas. Of course, he should live able to limited himself clearly too exactly too must e'er assay to minimize the usage of technical terminology inward communicating with his management executives. For, it is well-known that if management does non understand, it volition almost automatically reject. Further, patch intellectually he must live inward melody with industry’s thinking the wider national perspective should non live absents from his advice to transcend management.

Questions on Managerial Economics

1. Define managerial economic science with definition.
2. How does managerial economic science differ from economics?
3. Write a curt authorities annotation on managerial economist.
4. Explain the reach of managerial economics.
5. Explain role too responsibilities of managerial economist.

Article Source :- My university's costless study notes on managerial economics, Sem I, 2009-2010. Article sharing motto is to assist students or readers to larn too understand, the basics of Managerial Economics, via self-study.

JJ
6:41 PM 

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