1 Define Managerial Economics.

What role does the managerial economist play in the resource

allocation problems of an organization?

- A managerial economist may play a critical role in aiding management in solving the challenging
challenges of successful decision-making and forward planning by utilizing the increasingly specialized
skills and advanced methodologies necessary.

2 Is it widely held that such social service as education is exempt from the principles of efficiency
because it is not usually sold in an open market and does not have the Profit and Loss Statement of a
profit -oriented organization. Do you agree or disagree? Support your answer.

-I agree, according to the efficiency principle, an activity achieves the greatest benefit when the
marginal gains from its resource allocation equal the marginal societal costs. The objective is to
manufacture desirable items at the lowest feasible cost while avoiding deadweight loss and wasting
resources. If the aim is to get more desired results with fewer resources, it is critical to be explicit about
what is intended. Society may have a very efficient system because a great quantity of output is
obtained relative to the resources spent or invested, but if the output is out of sync with what is actually
wanted, the system is not particularly efficient.

3 Differentiate managerial economics from:

a. Microeconomics

- Managerial Economics is essentially a combination of Economics and Management. The primary

contributors to management economics are two disciplines of economics: microeconomics and
macroeconomics. Microeconomics is the study of individual consumer and company behavior,
whereas microeconomics is the study of the economy as a whole.

b. Macroeconomics

- Managerial Economics differs from Macroeconomics in that Managerial Economics uses

microeconomic concepts to aid in rational decision making in a managerial setting, whereas
Macroeconomics is a dedicated branch that determines economic correlations that can aid in better
policymaking for larger agencies, nationals, and international bodies.

c. Economics for consumers

- Consumers are the most fundamental economic entities in any economy. To maximize
happiness and usefulness, all consumers consume products and services both directly and indirectly.
Consumers have limited income, so they want to get the most out of it utility is the want satisfying
capacity of a commodity.

d. Economics for managers

- Managerial economics is concerned with the application of economic concepts to the issues of
a business enterprise, whereas economics is exclusively concerned with the study of these principles.
The application of economic concepts to the challenges of a business organization is ignored in
economics.
 e. industrial economics

- The study of businesses, industries, and markets is known as industrial economics. It examines
businesses of various sizes, from tiny corner stores to global behemoths like WalMart and Tesco. It also
takes into account a wide range of businesses, such as energy generating, automobile manufacturing,
and restaurants.

4 Try to make a review of the present economic environment. As managerial economists, relate your
findings to the operations of :

a. a service organization
-The Red Cross, one of the most well-known volunteer groups in the Philippines, seeks to assist
people via a variety of services. Blood donation drives, disaster management, safety, health,
social, and youth services are just a few examples. VYLH Philippines is a service-oriented
organization that strives to empower Filipino youth.

b. manufacturing

- The Philippine manufacturing industry remains the most significant sector in terms of long-
term productive employment, value addition creation, and innovation. When compared to other
industries, it has the largest multiplier effect on the economy. Manufacturing is said to as the economy's
motor. There are several services available due to its function as well.

c. an agriculture-based company

- Agriculture is a significant element of the Philippine economy, with products such as rice,
coconut, and sugar dominating agricultural output and exports. Agriculture is a significant element of
the Philippine economy, with products such as rice, coconut, and sugar dominating agricultural output
and exports.

5 What is the difference between maximizing behaviors? Cite examples of how Filipino managers
satisfice.

- Maximizers are those who strive for the best. Satisficers are those who are satisfied with good enough.
A maximizer is someone who continuously seeks the best possible outcome for every activity. Profit
maximization in economics refers to the short-run or long-run process by which a business determines
the pricing, input, and production levels that result in the maximum profit. Profits can be maximized if
the business produces at this output level. While satisficer will be content with the option he picked,
even if it is not the finest one, he might have longed for.