Define Business Economics?
Explain it's characteristics in detail?
Answers
Answer:
Explanation:
Managerial or Business Economics is the branch that deals with the organisation and allocation of a firm’s scarce resources to achieve its desired goals. Business Economics, thus, interconnects economic principles and business. It is a link between the theory of Economics and the decision sciences in the analysis of managerial decision-making.
Problem identification and solution to problems are the two essential elements of the decision-making of a corporate firm. Decision-makers inhibit ‘uncertainty’ of the real world where the changes are either in a hidden way or in an open manner.
Due to this uncertainty, prediction or estimation, it relates to the volume of sales of a product, cost of production, profit, etc. which is likely to be imperfect. So, in other words, Business Economics is a part of Applied Economics which is concerned with the application of economic concepts and analytical tools to the process of decision-making for a business enterprise.