- In the videos shown, I understand the meaning and content of the subject managerial economics is.

One of the videos showed that Managerial Economics is defined as "the branch of economics
concerned with the application of various economic concepts, theories, and methodologies to solve
practical problems in business management". It is also derived from the Greek term "oikonomia"
which meaning "management of the households”. In a single family, for example, it's more like
managing a resource to meet the expectations of each family member. It comes into play with these
two: economic theory plus business knowledge. Managerial Economics provides a framework for
decision making by applying economic concepts and tools to real world business problem. Meaning
to say, it helps you to build a better decision making whenever you have a problem in your company
or business, and by choosing a better decision, you can save your business from its problem. It may
additionally improve a company's overall performance. There are 5 concepts in management
economics. These are:

1. Supply and demand Analysis

- In this idea, we are investigating how buyers and sellers interact to determine transaction pricing
and volumes by understanding the forces of supply and demand.

2. Cost Analysis

- Cost analysis allows us to examine production costs or the total expenses connected with a project,
identify cost drivers, and make decisions about how we allocate resources in a company.

3. Pricing Strategies

- This is the techniques and methods used by businesses to decide the prices they charge for their
goods and services. In this concept, we can determine optimal pricing strategies by these three:
Considering costs, Competition, Consumer behavior.

4. Market Structures

- Different market arrangements are classified as Perfect Competition, Monopolistic Competition,

Oligopoly, and so on.

5. Risk Analysis

- In this final concept, it makes us more aware of the hazards that the organization faces and allows
us to establish swift contingency plans for how to address them.

Limited resources and unlimited human wants are called as scarcity. It is central economic problem
that we experience until now. The motto at the beginning of the video is "We can't always get what
we want," and I completely agree with that because we are experiencing it in our life. Not everyone
is wealthy sufficient to fulfill what they want. That’s why we need managerial economics, it is
important because it is the key to fix any problem in any problems in a company so that we can
satisfy the needs in a business. We can now choose the right decisions to provide highest benefit in
our company. And also, to allocate our resources efficiently. There are numerous benefits to learning
managerial economics that can help us in the near future.

Name: Jan Carlo C. Villaroya Section: BM1-A2