MANAGERIAL ECONOMICS

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WHAT IS ECONOMICS?

The study of how economic agents/societies choose to use scarce productive resources that have alternative uses to satisfy wants which are unlimited & of varying degrees of importance

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MAIN CONCERN OF ECONOMICS

ECONOMIC

PROBLEM Its identification, description, explanation and solution (if possible)

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SOURCE OF ANY ECONOMIC PROBLEM

SCARCITY

is the excess demand i.e. demand more than supply. forces economic agents to choose among alternatives leads to the problem of decision making
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WHAT IS DECISION MAKING

It involves evaluating various alternatives & choosing the best among them

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ROLE OF MANAGERS
Is essentially an economic one. decision making is the main job of management. E.g.: role of a financial managerTo mobilize resources from various resources so as to minimize the cost of funds & deploy these resources so as to maximize the return on investment

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WHAT IS MANAGERIAL ECONOMICS

The science of directing scarce resources to manage cost effectively. Wherever resources are scarce a manger can decide (decisions with respect to customers, suppliers, competitors or the internal workings of the organization) effectively by applying the discipline of Managerial Economics.
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CONTENTS OF MANAGERIAL ECONOMICS

Fundamental

problemsScarcity &

efficiency Demand & Supply Consumer Behaviour Production Analysis Analysis of Cost Market Structure Factor Pricing
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THE END

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