MANAGERIAL

MANAGERIAL ECONOMICS
ECONOMICS
 MANAGERIAL
MANAGERIAL
ECONOMICS
ECONOMICS

DEFINITION
NATURE,SCOPE & SIGNIFICANCE
 DEFINITIONS OF MANAGERIAL ECONOMICS

• Mansfield defines,”Managerial Economics is concerned

with application of economic concepts & economic
analysis to the problems of formulating rational
managerial decisions.”
• Spencer & Siegelman define ,”Managerial Economics
as the integration of economic theory with business
practice for the purpose of facilitating decision-
making & forward planning by management.”
• E.J.Douglas,” Managerial Economics seeks to establish
rules & principles to facilitate the attainment of the
desired economic goals of management.”
 Nature of Managerial
Economics
• It includes:
• Planning
• Decision Making
• Demand Analysis & Forecasting
• Cost & Production Analysis
• Pricing Policy
• Capital Management
• Sales Maximisation
• Profitmaking
 ROLE & RESPONSIBILITES OF A MANAGERIAL
ECONOMIST

• Responsibilities
• Service toSociety
• Role • Good Corporate
• Profit Making citizenship
• Sales Maximisation
• National Priorities
• Cost Minimisation
• Avoidance of
• Financial Management
Innovations & Risk-bearing
profiteering & anti-
•
• Long-run Survival
social practices
• Demand Forecasting • Export Promotions
• Market Expansion
• Market Leadership