0Business Economics
- introduction:
Business economic is that discipline which deals with the application of economic theory to business management. It lies on the borderline between economic and business management and serves as a bridge between the two disciplines.Business Economics, also called Managerial Economics, and is the application of economic theory and methodology to business.
Managerial Economics was formerly known as "Business Economics." It is also called as "Applied Economics". The world Business Economics is formed from the two worlds Business and Economics.
- Definition:
According to Mc Nair and Meriam, “Business economic consists of the use of economic modes of thought to analyse business situations.”
Siegel man has defined managerial economic (or business economic) as “the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning by management.”
- Nature of business Economics:
Nature of Business Economics is explained, as the business economics bridges the gap between economic theories and practical application of economic logic and tools. It eliminates the difference between the proposition of these theories and the real economic conditions.
1) Business Economics is micro-economic
2) Business Economics is normative
3) Business Economics is a science
4) Business Economics is an art
5) Realistic in nature
6) Includes macro analysis
7) Interdisciplinary in nature
- scope of Business Economics :
The scope of Business economics covers two areas of decision making.
1) Operational or Internal Issues.
2) Environmental or External Issues.
