Question

is mangerial economics an applied micro economics ? please easily answer abhi batye and

Answer 1

Managerial Economics is basically a blend of Economics and Management. Two branches of economics i.e. micro economics and macro economics are the major contributors to managerial economics.

Micro Economics is the study of the behaviour of individual consumers and firms whereas microeconomics is the study of economy as a whole.

Managerial Economics and Micro Economics

All the firms operating in the market have to take under consideration the constituent of the economic environment for its proper functioning. This economic environment is nothing but the Micro economics elements.

Micro Economics is a broader concept as compare to Managerial Economics. Micro Economics forms the foundation of managerial economics. Almost all the concepts of Managerial Economics are the perceptions of Micro Economics concepts.

Managerial economics can be perceived as an applied Micro Economics. Demand Analysis and Forecasting, Theory of Price, Theory of Revenue and Cost, Theory of Supply and Production are major bare bones of Micro Economics that underpins the Managerial Economics. Managerial Economics applies the theories of Micro Economics to resolve the issues of the organization and for decision making.