A stream of management studies

studies ECONOMIC To optimize decision To analyze the

that emphasizes primarily solving ECONOMICS making when the firm possible effects and
business problems and decision- SOCIAL is faced with problems implications of both
making by applying the theories POLITICAL or obstacles, with the short and long-term
and principles of micro and consideration of macro planning decisions
and microeconomic on the revenue and
macroeconomics.
theories and principles. profitability of the
BUSINESS ENVIRONMENT
business.
The amalgamation of
economic theory with MACROECONOMICS MICROECONOMICS
business to ease decision-
making and future MEANING
ied
planning by management. ppl
a
PURPOSE

A branch of economics involving the Allocating the

application of economic methods in scarce resources in
the managerial decision-making a manner that
process. minimizes the cost.

HAS COMPONENTS FOR ADMINISTRATION

OF MACRO OF ORGANIZATION
ECONOMICS
SCARCITY
HAS COMPONENTS
OF
MICROECONOMICS

DYNAMIC IN NATURE
HELPFUL IN OPTIMUM
SCIENCE
RESOURCE ALLOCATION
ART
Helps the management by
using his analytical skills and
highly developed techniques
in solving complex issues of
successful decision-making
and future advanced planning.