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.
Managers should understand the data and analyze it to make ideal management.
Features of Managerial Economics
The following are the characteristics of managerial economics in business:
1. 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 use mathematical concepts and scientific instruments. Including computers 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.
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 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 analyzes 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.
4. Helpful in Forecasting
One of the best features of managerial economics 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 different types of analytical data.
Where the direction of the form is shown in the future, where it goes, so it is quite helpful in forecasts.
5. 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 are used in the firm’s theory.
Managerial Economics should be put together. That uses the firm’s economics only to follow his principles.
6. Help of Macroeconomics
Managerial economics uses macroeconomic components. Elements of macroeconomics such as –
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.
Managerial Economy is the nature of microeconomics.
Managerial Economics find the problems of individual firms, analyzes the events and actions related to them determines their policies, and decides or makes plans. So it comes under microeconomics.
In essence, managerial economics does not analyze the entire economy.
Therefore, it only detects the analysis of a firm.
8. Vital Part of 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.
9. Analysis and Cases
Because managerial economics has the power, that analyses the business and provides the right direction.