MANAGERIAL ECONOMICS

BBALLB – I SEM
Dr. Shishma Kushwaha
Assistant Professor

JIMS Engineering Management & Technology,

48/4, Knowledge Park – 3,
Greater Noida (UP)
OBJECTIVE OF THE SESSION

▰ INTRODUCTION TO MANAGERIAL
ECONOMICS
▰ DECISION MAKING IN MANAGERIAL
ECONOMICS
▰ CONSTRAINTS IN THE MANAGERIAL
DECISION
INTRODUCTION
TO
MANAGERIAL
ECONOMICS
MEANING OF MANAGERIAL ECONOMICS

▰ Managerial economics deals with the

application of the economic concepts, theories,
tools, and methodologies to solve practical
problems in a business.
▰ Managerial economics is the combination of
economics theory and managerial theory.
▰ It helps the manager in decision-making and acts
as a link between practice and theory
DEFINITION OF MANAGERIAL ECONOMICS

▰ According to McNair and Meriam, “Managerial

economics is the use of economic modes of thought
to analyse business situations.”
▰  In the words of TJ. Webster, "Managerial
economics is the synthesis of microeconomic theory
and quantitative methods to find optimal solutions to
managerial decision-making problems?
Nature OF MANAGERIAL ECONOMICS
SCOPE OF MANAGERIAL ECONOMICS
DECISION MAKING IN MANAGERIAL ECONOMICS

▰ DEMAND DECISION
▰ COST DECISION
▰ PRODUCTION DECISION
▰ PRICE DECISION
▰ BUSINESS POLICY DECISION
▰ PROFIT PLANNING DECISION
▰ TAX PLANNING DECISION
▰ PROFIT DISTRIBUTION DECISION
CONSTRAINTS IN DECISION MAKING

▰ ORGANISATIONAL CONSTRAINTS
▰ SOCIETAL CONSTRAINTS
▰ COGNITIVE CONSTRAINTS
▰ ECONOMY CONSTRAINTS
▰ BOUNDED RATIONALITY
▰ UNCERTAINITY
 THANK YOU
FOR FURTHER QUERIES,
PLEASE CONTACT
shishma.gn@jagannath.org