Question

Which of the following aspect is not included in the scope of Industrial Economics.
1.Theory of Firm
2.Cost Analysis
3.Profit Analysis
4.Service Sector​

Answer 1

Answer:

Managerial Economics deals with the application of the economic concepts, theories, tools, and methodologies to solve practical problems in a business. In other words, managerial economics is the combination of economics theory and managerial theory. It helps the manager in decision-making and acts as a link between practice and theory.[1] It is sometimes referred to as business economics and is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units.

As such, it bridges economic theory and economics in practice.[2] It draws heavily from quantitative techniques such as regression analysis, correlation and calculus.[3] If there is a unifying theme that runs through most of managerial economics, it is the attempt to optimize business decisions given the firm's objectives and given constraints imposed by scarcity, for example through the use of operations research, mathematical programming, game theory for strategic decisions,[4] and other computational methods.[5]

Answer 2

(1) Theory of Firm is not included in the scope of Industrial Economics.

Explanation:

• The majority of the issues that a management or establishment encounters are covered by Business Economics. As a result, the scope of business economics is broad.
• Through production analysis, the business may select the suitable technology that provides a technically efficient method of creating the output.
• Cost analysis, on the other hand, allows the company to detect the behaviour of costs as variables such as production, time period, and plant size vary.