What is managerial economics? what role does it play in shaping business decisions?
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Managerial Economics
Management and economics are closely related. Managerial economics has developed due to this close association between the two. Management is concerned with the guidance, leadership and control of the efforts of a group to achieve a common goal. Economics deals with analyzing and providing answers to the fundamental problem of scarcity of resources.
The role of managerial economics in shaping business decisions:
There are three choice problems of the economy which have to be handled. They are:
What to produce? How to produce? For whom to produce?
Managerial economics is used to provide an answer to these questions. It has evolved many analytical tools to handle the allocation of scarce resources.
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