Industrial Economics

Prepared by : Aniket Ghatol

Subject teacher: Dr.kanchan nikam
Class: M.com Div: C
Topic: Scope and limitation of industrial economics
 Meaning
• Industrial Economics is the study of firms, industries, and markets. It
looks at firms of all sizes – from local corner shops to multinational giants
such as WalMart or Tesco. And it considers a whole range of industries, such
as electricity generation, car production, and restaurants.
 Scope of Industrial Economics
• Industrial economics is a distinctive branch of economics which deals with
economic problems of firms and industries, and their relationship with the
society. It is concerned with the study of descriptive element and business
policy and decision making elements of the subject. It is a positive science as
it studies what is the situation of economy rather than what should be the
situation of an economy. It comprises both micro and macroeconomics.
 Scope of Industrial Economics
• Industrial Efficiency
• Diversification
• Industrial Finance
• Industrial location
• Industrial Policies
 Limitations of Industrial economics
• The most significant limitations are those that relate to the high risk
involved with the engagement in innovation. The risks are related, on the
one hand, to the lack of financial resources, and on the other hand, to the
high cost needed for this engagement, thereby affecting the time needed for
return on investment.