What is Economics for Managers?
Economics for Managers or Managerial Economics is a type of economics that has the implementation of economic methods to make decisions at a managerial level. Managerial economics is a way to create a framework that is aimed to make decisions and maximize the profits of a company. Managerial economics focuses on lowering unproductive activities and making use of all possible business resources to increase the efficiency of companies and also the output. Managerial economics has two main purposes such as making use of macro and microeconomic theories and rules when the company is faced with problems to come up with possible solutions and decisions.
Managerial economics has also aimed to make use of the possible effects and importance of both short and long-term planning decisions to increase the revenue and profits of the company. In order to optimize decisions at an economic level, the goals of managerial economics may include the use of operations research, strategic decision making, game theory, mathematical programming, and other methods at the computation level. These methods help to make quantitative decisions using data analysis methods.
Managerial Economics uses innovation, pricing, analytics, competition, incentives, business organization, advertising, etc. as the theory. Managerial economics is a mix of managerial and economic theories. It also helps in making decisions and makes a connection between practice and theory. Thus, managerial economics gives methods for managers and the device to make use of the best decisions for any case.
Managerial economics also helps to determine the price and quantity of a product or service that a company should create. Whether we have to invest in the current employees using any training methods or go to market for finding out new staff. It also helps to determine the fleet equipment. Managerial economics is also known as business economics and it is a branch of economics that makes use of microeconomic analysis and various methods to aid managers make multi-faceted decisions.