MANAGERIAL ECONOMICS- DEFINITION
According to Milton H Spencer and Louis Siegelman “Managerial Economics is the integration of economic theory with business practices for the purpose of facilitating decision making and forward planning by management”
Managerial Economics can be easily defined as an application of economic theory and methodology to business administration policies.
Managerial economics is the study of how scarce resources are directed most efficiently to achieve managerial goals. It is a valuable tool for analyzing business situations to make better decisions.
FEATURES OF MANAGERIAL ECONOMICS
- Close to Micro Economics.
- Managerial economics is concerned with the analysis of finding optimal solutions to business problems.
- Managerial economics is based on strong economic concepts.
- Operates against a backdrop of macro-economics, it provides normative standards.
- It is interdisciplinary in nature.
- Offer scope to evaluate each alternative.
- It provides solutions under assumptions and limitations.
SCOPE OF MANAGERIAL ECONOMICS