Question

Role of managerial economics in decision making process

Answer 1

Managerial economics is branch of economics that helps to apply the economics theories directly to the business situations.

Managerial economics helps in solving complex analytical problems; it increases the efficiency of decision making process. Its implication in business is numerous, from cost benefit analysis to planning process of the firm.  

This division of economics helps to understand the changes occurring in macro-economic factors at the firm level to make appropriate decisions timely and in profitable fashion.    

Answer 2

Managerial economics: A study that integrates economic theory with managerial practice is called as managerial economics.

Reason:

• The logical problems and the problems of policy are liked and a solution is sought.
• One of the powerful techniques for managerial policy and decision making.
• Solve complex problems.
• Understand variations in the economic trends.
• Formulate efficient decisions.