SCOPE OF

MANAGERIAL ECONOMICS

BY FAMPULME CARLA PIANZ S.

 The definition of managerial economics is commonly used to

SCOPE OF MANAGERIAL
deal with various business problems within organizations.

ECONOMICS Both microeconomics and macroeconomics have an equal

effect on the organization and its work.

 INTERNAL ISSUES
In microeconomics theories are

applied to internal or

operational issues

EXTERNAL ISSUES
called as environmental issues in

macroeconomics
MICRO ECONOMICS
APPLIED TO OPERATIONAL ISSUES

THEORY OF CONSUMER DEMAND

THEORY OF COST AND PRODUCTION

THEORY OF PRICE DETERMINATION

THEORY OF CAPITAL AND INVESTMENT DECISIONS

THEORY OF

CONSUMER

DEMAND

Analyzes the consumer’s behavior toward a

product or service. This considers the customers’
desires, expectations, preferences, and conditions
to enhance the manufacturing process.
 This theory is primarily concerned

THEORY OF
with the volume of production,

COST AND
process, capital and labor, costs

involved, etc. It aims to optimize the

PRODUCTION production analysis to meet

customer demand.
 IT FOCUSES ON ASSESSING A PRODUCT’S PRICE

CONSIDERING THE COMPETITION, MARKET

DYNAMICS AND OPTIMIZING SALES VOLUME.

IT HELPS FIRMS IN DETERMINING THE PROFIT

MAXIMIZING PRICE OF THEIR PRODUCT.

THEORY OF
Theory of
price determination

PRICE DETERMINATION
THEORY OF CAPITAL AND INVESTMENT DECISIONS

Capital is the most important business element.

This philosophy takes priority over the proper distribution of

the resources of the company and investments in productive

programs or initiatives to boost operational performance.

MACRO-
ECONOMIC ENVIRONMENT
ECONOMICS

APPLIED TO

BUSINESS
SOCIAL ENVIRONMENT
ENVIRONMENT

POLITICAL ENVIRONMENT
ECONOMIC ENVIRONMENT

A country’s economic conditions, GDP, government policies, etc., have an

indirect effect on the company and its operations.

 SOCIAL

ENVIRONMENT
The society in which the organization works, like

employment conditions, trade unions, consumer

cooperatives, also affect it.
 A country’s political system, whether authoritarian or

POLITICAL
democratic, political stability, and attitude towards the

private sector, impact the growth and development of the

ENVIRONMENT organization.
THANK YOU
References: Managerial Economics, 8th Edition By Dwivedi D.N.