Definition
“Managerial economics is concerned with business
efficiency”. – Professor Small
“Managerial economics is the use of economic modes of
thoughts to analyse business situation.”
- Mcnair and Meriam
Common Features in the definitions
1. Managerial economics is concerned with decision making of
economic nature
2. Managerial economics is goal oriented, it aims at maximum
achievement of objectives and how decisions
should be made by the manager to
achieve the goal.
3. Managerial economics is pragmatic as it deals with
matters according to their practical significance.
4. Managerial economics applies quantitative techniques to
business.
Factors Influenced
in decision making other than economic factors
1. Human
2. Behavioral
3. Technological
4. Environmental
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