Managerial Economics Explained in a Nutshell

Manegerial economics is an inevitable part of the business. All the investment, forecasting, assumptions are based on this single thing. Business runs on theories explained in economics. Manegerial economics is a branch of economics used by businesses not only to find solutions but also plan for long term goals. It can be easily be said that managerial economics is the practical application of theories of economics. This subject is studied by students at graduate and post graduate level. BookMyEssay provides excellent Managerial economics assignment help to students in need.

What is Managerial Economics?

Managerial Economics is defined as that branch of economics that is involved with the application of economic concepts, theories and methodologies in the process of business related decision making. It is regarded as the practical application of economics.b9e trei66g5e⁴

The two main operations of managerial economics are:
  • To optimize the decision made at any business during any problems, with the considerations of micro a macro economics
  • To analyse the implications of lond and short term planning decisions on the profits 9f the business

Main Theories of Managerial Economics

Manegerial Economics is largely based on microeconomics, some if it's features include :

Supply and Demand: According to this law, the price set by producers is inversely proportional to the quantity demanded by consumers. It means that the price of a product increases, when the demand of that product decreases. For assignments based on the concepts of supply and demand, students who need assignment help can contact the help desk of BookMyEssay.

Production theory: Production theory states that the amount of product a business chooses to produce depends upon several factors like raw material, labour cost, capital etc. In short, businesses wil always employs cheapest combination of  inputs to produce puts in demand.

Opportunity costs: The opportunity costs are the potential benefits that a business misses out when choosing one alternative over other. The opportunity costs are easily overlooked if one is not careful. It is often used by businesses to make educated decisions when they have multiple options.

Theory of exchange or Price Theory: This theory aims at setting the price of the product such that the supply of the product is met with equal demand of the product. If the price is set too high, the consumer may think that product is not worth the price and may not buy it and vice versa. Thus, if students need help with assignments based on price theory, experts have all knowledge about it and can readily provide it.

Theory of Capital and Investment decisions: As per this theory, there must be rational allocation of funds. The organisations should decide to invest in profitable projects in order to improve the efficiency of the organisation.

Manegerial Economics uses these theories to make informed business decisions.

Types of Manegerial Economics

Different types of managers percieve manegerial economics in different ways. Any assignment based on types of managerial economics is available with the best UK writers at BookMyEssay. You can easily get managerial economics assignment help. Let us explore different types of managerial economics :

  1. Liberal Managerialism: Businesses and corporations have to keep on modifying their policies according to consumer demands and market trends, if not done it may result in market failures. Thus called Liberal Managerialism.
  1. Normative Managerialism: The decisions taken by business administration reflects practical approach regarding the product design, forecasting, marketing, supply and demand , recruiting etc.and every other thing related to the growth of the business.
  1. Radical Managerialism: The approach says to adopt revolutionary solutions when conventional methods don't solve the problems. The managers are required to have extra ordinary skills to look beyond. Here customer needs are prioritised over company profits.

Thus, for more information on topics related to managerial economics and to get assignments on the same, students can approach BookMyEssay.

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