Question

Scope and importance of managerial economics in business management

Answer 1

Managerial economies are a developing science which generates the countless problems to determine its scope in a clear-cut way.

However, then the following fields may be considered under business economics:

1. Demand Analysis and Forecasting.

2. Cost and Production Analysis.

3. Pricing Decisions, Policies and Practices.

4. Profit Management.

5. Capital Management.

The study of these segments of business economics constitutes its subject matter as well as scope. Recently, managerial economists have started making increased use of Operational Research methods