Managerial Economic Essay

35682 Words Dec 15th, 2012 143 Pages
Unit 1

Concepts of Managerial Economics
Learning Outcome

After going through this unit, you will be able to: • • • • Explain succinctly the meaning and definition of managerial economics Elucidate on the characteristics and scope of managerial economics Describe the techniques of managerial economics Explain the application of managerial economics in various aspects of decision making • Explicate the application of managerial economics in marginal analysis and optimisation

Time Required to Complete the unit
1. 2. 1st Reading: It will need 3 Hrs for reading a unit 2nd Reading with understanding: It will need 4 Hrs for reading and understanding a unit 3. 4.
5.

Self Assessment: It will need 3 Hrs for reading and understanding a
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This complex environment is coupled with a global market where input and product prices are have a propensity to fluctuate and remain volatile. These factors work in tandem to increase the difficulty in precisely evaluating and determining the outcome of a business decision. Such evanescent environments give rise to a pressing need for sound economic analysis prior to making decisions. Managerial economics is a discipline that is designed to facilitate a solid foundation of economic understanding for business managers and enable them to make informed and analysed managerial decisions, which are in keeping with the transient and complex business environment.

1.2 Concept of Managerial Economics
The discipline of managerial economics deals with aspects of economics and tools of analysis, which are employed by business enterprises for decision-making. Business and industrial enterprises have to undertake varied decisions that entail managerial issues and decisions. Decision-making can be delineated as a process where a particular course of action is chosen from a number of alternatives. This demands an unclouded perception of the technical and environmental conditions, which are integral to decision making. The decision maker must possess a thorough knowledge

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