 In very simple word for analyzing and solving the problem of person or a group of society we utilize the theories and concepts of a subject known's as economics. Managerial economics is a special branch of economy. . Generally related with the problem of business units and hence it’s area is confined to business problem only.

 In the same way of analyzing and providing the best alternatives for solving the problem of the unit or a firm or company. We apply various concept of economics and statistics a subject is known as “MANAGERIAL ECONOMICS” .

"  “M.E.E.  “M.  “M. . consist of use of economic models of thought to analyses business situation”. Managerial economics as defined by Edwin Mansfield is "concerned with application of the economic concepts and economic analysis to the problems of formulating rational managerial decision. can be defined as the discipline which deals with application of economic theory to the business problem”.E is the integration of economics theory with business problem for the purpose of facilitating decision making and forward planning by management”.

) Optimum solution of problems .Economics (theory.concept) Business problem Managerial economics (application of economics to solve problem) Decision making (evaluate all the alternatives. method .

Alternative uses of scarce resources. . 2. 4. 5. Keeps firm at a center. 3. different economics activity. Scares resources.1. Problem of choice.

in 18003001947 ." decision.

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