With the growing variability and unpredictability of the business environment, business managers have become increasingly concerned with finding rational and ways of adjusting to an exploiting environmental change. He is simply concerned with the problem of resources in relation to the ends desired.
When demand is estimated, the manager does not stop at the stage of assessing the current demand but estimates future demand as well.
Hence it is necessary to trace its roots and relationship with other disciplines. Investment refers to expenditure on capital goods. Managerial economics as defined by Edwin Mansfield is "concerned with application of economic concepts and economic analysis to the problems of formulating rational managerial decision".
Input-output analysis is a technique for analysing inter-industry relation. Managerial economics makes use of correlation and multiple regression in business problems involving some kind of cause and effect relationship. Hence, cost structure, reduction of cost and cost control has come to occupy important places in business decisions.
Statistics is important to managerial economics in several ways: The application of managerial economics is inseparable from consideration of values, or norms for it is always concerned with the achievement of objectives or the optimisation of goals.
Though statistical methods are the handmaid of managerial economics, they should be used with care. In this context one may venture to quote Joel Dean whose comment of more than four decades ago seems very important and relevant even today: Is there any special emphasis for industrial promotion?
The scope of managerial economics is so wide that it embraces almost all the problems and areas of the manager and the firm. Present business problems are either too obvious in their solution or purely speculative and they need a special form of insight.
The use of mathematics is significant for managerial economics in view of its profit maximization goal long with optional use of resources.
But managerial theory has only micro characteristics. Managerial economics is a science applied to decision making. The relationship between managerial economics and economics theory is like that of engineering science to physics or of medicine to biology.
Again, both operational research and managerial economics are concerned with taking effective decisions. This forecast can also serve as a guide to management for maintaining or strengthening market position and enlarging profit.Relation of Managerial Economics to Other Areas of Management: It is possible to establish link of managerial economics to other areas of management.
In fact, there is a relation between managerial economics and the operation of every segment in a business, and management can make use of many of the fundamental principles or theories of.
3 Managerial economics relationship with other disciplines 1. Managerial Economics&Financial Analysis 1| Mohammad Imran Managerial economics relationship with other disciplines Introduction Many new subjects have evolved in recent years due to the interaction among basic disciplines. Managerial economics relationship with other disciplines: • Many new subjects have evolved in recent years due to the interaction among basic disciplines.
managerial economics can be taken as the best example of such a phenomenon among social sciences. What managerial economics and it relations to other disciplines?
Managerial economics is a study of application of managerial skills in economics,more over it help to find problems or. Managerial Economics in Relation with other Disciplines / Branches of Knowledge Managerial economics has a close linkage with other disciplines and fields of study.
The subject has gained by the interaction with Economics, Mathematics and Statistics and has drawn upon Management theory and Accounting concepts.
Dec 30, · The relationship between managerial economics and economics theory may be viewed form the point of view of the two approaches to the subject Viz.
Micro Economics and Marco Economics. Microeconomics is the study of the economic behavior of individuals, firms and other such micro organizations.Download