Question

Explain how managerial economics is relevant to the business and engineering.

Answer 1

In order to run a business, a person should have knowledge on various aspects of the business.  For an engineer, to meet the expectations of the management and the customer, he/she should have knowledge on the different aspects of the business.  

Managerial economics deals with all the aspects of business. For example, it deals with Product policy, sales promotion and market strategy.  It helps the firm to find out about the demand through “Demand Analysis and Forecasting.” It also helps in “Production Analysis, Pricing Decisions, Policies and Practices; Profit Management and Capital management.”