difference between economics and managerial
Answers
Answer:
Explanation:Both managerial economics and traditional economics involve the production, distribution, and consumption of goods and services, and are both reflected from the basic economic principle of using the factors of production in an efficient manner for the production of output of goods and services.
The main difference between the branches of economics is that traditional economics is primitive and is used in underdeveloped and less technologically advanced economies, whereas managerial economics is a result of globalization and evolution of economics to include managerial decision making. Managerial economics makes the use of sophisticated modelling systems and statistical data in decision making regarding production volumes, pricing and distribution channels, whereas traditional economics involves the use of farming, hunting, and pastoral activities by individuals to meet their daily consumption needs.
Summary:
Economics vs. Managerial Economics
• Traditional economics is employed by less developed nations with no sophisticated management systems, whereas managerial economics is used by modern day high-tech economies.
• Managerial economics is concerned with modelling systems and complex managerial decision making, whereas traditional economics is concerned with the production of food and other necessities to meet daily requirements of individuals.
• Managerial economics represents the development that a traditional economy has been through with globalization, development in technology and modernization of economic theories to suit managerial decision making.