Dhsgfkjsd Essay

5676 Words Aug 2nd, 2016 23 Pages
Table of Contents
Managerial Economics: Bridging the gap between economic theory and business practice
Introduction 3
Definition 3
Economic Theory Vs. Managerial Theory 4
Decision-making 6
Scope of Managerial Economics 6
Positive versus Normative Economics 7 Positive Economics 7 Normative Economics 7
Examples Demonstrating How Managerial Economics Translates Economic Theory into Business Practice 9 Demand Analysis and Forecasting 9 Cost and Production Analysis 10 Inventory Management 10 Advertising 11 Pricing Decision, Policies and Practices 11 Profit Management 11 Capital Management 12
Responsibilities of a Managerial Economist 13
Conclusion 15
Gadgets International: A Case Study
Nature of the Case Study 16
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Hence, it becomes neces­sary to redesign economic ideas to the practical world. This function is being done by managerial economics.
Definition
Managerial economics has been defined in a number of ways by different academicians. According to E.F. Brigham and J. L. Pappar, Managerial Economics is “the application of economic theory and methodology to business administration practice.” To Christopher Savage and John R. Small: “Managerial Economics is concerned with business efficiency”. Milton H. Spencer and Lonis Siegelman define Managerial Economics as “the integration of eco­nomic theory with business practice for the purpose of facilitating decision-making and forward plan­ning by management.” In the words of Me Nair and Meriam, “Managerial Economics consists of the use of economic modes of thought to analyze business situations.” D.C. Hague describes Managerial Economics as “a fundamental academic subject that seeks to understand and analyze the problems of business decision-making.” In the opinion of W.W. Haynes “Managerial Economics is the study of the allocation of resources available to a firm of other unit of management among the activities of that unit.” According to Floyd E. Gillis, “Managerial Economics deals almost exclusively with those busi­ness situations that can be quantified and dealt with in a model or at least approximated quantitatively.”
Overall, all these definitions accentuate the interrelationship of economic theory with

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