Question

Explain concept and techniques of managerial economics.

Answer 1

Answer:

Managerial decision making uses both economic concepts and tools, and techniques of analysis provided by decision sciences. The major categories of these tools and techniques are: optimization, statistical estimation, forecasting, numerical analysis, and game theory.

Explanation:

Managerial decisions both in the short run and in the long run are partly shaped by the market structure relevant to the firm. While the preceding discussion of market structures does not cover the full range of managerial decisions, it nevertheless suggests that managerial decisions are necessarily constrained by the market structure under which a firm operates.

TOOLS OF DECISION SCIENCES AND MANAGERIAL ECONOMICS

Managerial decision making uses both economic concepts and tools, and techniques of analysis provided by decision sciences. The major categories of these tools and techniques are: optimization, statistical estimation, forecasting, numerical analysis, and game theory. While most of these methodologies are fairly technical, the first three are briefly explained below to illustrate how tools of decision sciences are used in managerial decision making.

Answer 2

Answer:

Managerial decision making uses both economic concepts and tools, and techniques of analysis provided by decision sciences. The major categories of these tools and techniques are: optimization, statistical estimation, forecasting, numerical analysis, and game theory.

Explanation: