study material for MBA I- Managerial Economics
MBA 102 Managerial Economics Unit I 1. Define managerial economics. Explain briefly its nature and scope? Ans. Managerial Economics consists of that part of economic theory which helps the business manager to take rational decisions. Economic theories help to analyze the practical problems faced by a business firm. Managerial Economics integrates economic theory with business practice. It is a special branch of economics that bridges the gap between abstract theory and business practice. It deals with the use of economic concepts and principles for decision making in a business unit It is over wise called Business Economics or Economics of the Firm. The terms Managerial Economics and Business Economics are used interchangably. Managerial Economics is economics applied in business decision-making. Hence it is also called Applied Economics. Definition of Business Economics In simple words, business economics is the discipline which helps a business manager in decision making fo