Managerial Economics is the branch of economics. including economic principles and concepts for the analysis and solution of management problems of business organizations and industries.
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Features of Managerial Economics
The following are the Best key features of Managerial Economics:
1. More Sophisticated and New Topic
Managerial Economics is a More sophisticated and new topic. So Managerial economics is a very refined topic compared to general economics.
It is sophisticated for these reasons that now currently its use in mathematical concepts and scientific instruments. Including computer etc.
Therefore, It was developed along with World War II so that’s a whole new topic and Pursuing developing scripture. Which is going through its early stages.
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2. Practical utility
Managerial economics demonstrates, the method of economic theory and analysis used in economic decision making and policy determiners.
Therefore, it is a tool of practical utility, not a principle.
3. Normative Economics or Determinant Nature
Managerial economics is not of the nature of descriptive economics but of the Normative economics.
It coordinates economic theory and business practices and makes the right decision.
As the demand and decrease in the law of demand decreases and increases in demand. Managerial economics analyzing the good or bad results of the firm.
Thus, If you see correctly, managerial economics lives in a fixed nature.
Because it can not even tell that it is right that it can analyze them. And can present the data in front of you. after all, you will take the right decision.
Bonus: Demand Forecasting: Meaning, Objectives, Features, Need & Limitations.
4. Helpful in Forecasting
One of the Best Key Features of Managerial Economics. It is helpful in detecting prediction or forecasting.
This is very difficult for any business. because What is going to happen with business in the future?
But the managerial economics can detect from different types of analytical data. Where the direction of the form shown in the future, where it goes, so it is quite helpful in forecasts.
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5. Firm Theory/Economics of the firm
Now As we know the subject matter of managerial economics is related to the firm’s theory.
Therefore, the economic theory concept and analysis methods used in the firm’s theory.
So, it also uses them all in cost and advance analysis, demand and fulfillment analysis, production quantity and pricing and also for maximization of profits. is remarkable. what is the Utility of a Managerial Economist in Business?
Managerial Economics should be put together. that uses the firm’s economics only to follow his principles.
6. Help of Macroeconomics
Managerial Economics uses macroeconomics components/factors. elements of macroeconomics such as –
- business cycle,
- National income monetary,
- foreign Trade Policy and
- Price level fiscal policy.
Managerial economics also uses them.
Because what will happen with the firm in the future, or what events can happen. Who knows so To avoid them, macroeconomics is already used to determine policy and managerial economics.
Related: 15 Importance of Entrepreneurship (in Modern Economy).
7. Microeconomics
Managerial Economics is the nature of microeconomics.
Managerial Economics find The problems of individual firms, analyzing the events and actions related to it determines their policies, decides or makes plans. So it comes under microeconomics.
In essence, this is the main Feature of Managerial Economics. Because managerial economics does not analyze the entire economy.
Therefore, it only detects the analysis of a firm. so this is one of the best Features of Managerial Economics.
Related: 16 Need and Importance of Business Environment (Updated).
8. The Vital Part of the Firm
Managerial economics has become an important part of any firm. because it is necessary for the firm.
It is useful for every firm, so it is an integral part of a firm.
Read more: Managerial Economist: Responsibilities, Functions, and Role.
9. Analysis and Cases
The purpose of managerial economics should be to show that and should provide the right direction using economic analysis to determine business policies.
Because managerial economics has the power, that analyses the business and provides the right direction.
Thus, Now you can understand the features of Managerial Economics by knowing how managerial economics helps in benefiting any firm and how it handles a firm.
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