Managerial Economics

What Is Managerial Economics

Managerial Economics:-  managerial economics means that the application of economic methods in the managerial decision-making process, is a fundamental part of any business or management Course.

This text covers all the main aspects of managerial economics, the theory of the firm; demand theory and estimation; production and cost theory and estimation, market structure and pricing; game theory; investment analysis and government policy. All these point comes into the managerial economics.

Basically the managerial economics is most important for all these firm or organization that they have a business related to importers and exporters whether it related to Indian Exporters, Indian Importers or other. It includes frequent and widespread case studies, as well as appraises questions and problem-solving sections at the end of each chapter.

Economic Theory & Managerial Theory


• Economic theory is a system of interrelationships. Among the social sciences, economics is  the most advanced in terms of theoretical orientations.

• There are well defined theoretical structures in economics. One of the most widely discussed
 structures is the postulation or axiomatic method of theory formulation. The theory of competitive equilibrium is entirely based on axiomatic method. Both in deductive inferences and inductive generalizations, the underlying principle is the interrelationships.


Economic Theory Vs Managerial Theory 

• Managerial theory deals with the application of certain principles to solve the problem of the firm but Economic theory deals with the body of principles.

• Managerial theory has only micro characteristics but Economic theory has the characteristics of both micro and macroeconomics.

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• Managerial theory studies only individual firm but Economic theory deals with the study of individual firm as well as individual consumer.