Question

How economic theory is basis to managerial economics?

Answer 1

The Theory of Decision Making: The theoryof decision making has relevance and significance to managerial economics. Much of economic theory is based on two assumptions: (1) Individuals and firms strive toward a single goal maximum utility for the individual and maximum profit for the firm.

Answer 2

Explanation:

The Theory of Decision Making: The theory of decision making has relevance and significance to managerial economics. Much of economic theory is based on two assumptions: (1) Individuals and firms strive toward a single goal maximum utility for the individual and maximum profit for the firm..