Find the best tutors and institutes for MBA Tuition

Find Best MBA Tuition

Please select a Category.

Please select a Locality.

No matching category found.

No matching Locality found.

Outside India?

Search for topics

Managerial Economics: Concept and Importance

Manisha S.
19/05/2020 0 0

Managerial Economics is art and science, which helps in the decision making of:

1) what?

2) how?

3) and for whom to produce?


1) it is science and art: science because it integrates the use of tools mathematics, statistics, and econometrics with economic theories to achieve desired goals.

It is an art as it involves the practical application of economic theories for the achievement of objectives.

2) Relies on microeconomics: business economics is mainly concerned with the achievement of objectives of a firm to ensure its long-term survival and profitability. Since it is concerned with the growth and survival of an individual business unit, it is based on microeconomics.

3) incorporates features of macroeconomics: though business economics/ managerial economics is based on microeconomics. It still has some elements of macroeconomics as a business unit can not exist in isolation. It is still affected by government policies, general price levels, income and employment levels, taxation, availability of resources, market regulations, etc.

4) Pragmatic (practical) in approach: Business economics tackles the possible problems a firm/ business faces in the real world (positive economics). It is different from microeconomics. In this aspect, as microeconomics is abstract and purely theoretical and analyses economic phenomena under unrealistic assumptions (normative).

5) Interdisciplinary:  it incorporates the tools of multiple disciplines such as mathematics, statistics, finance, econometrics, management theory, etc.



- Demand analysis and forecasting

- Profit management 

- Capital management

0 Dislike
Follow 2

Please Enter a comment


Other Lessons for You

Industrial Relations
Absence of Industrial Relations(IR) leads to –Industrial Conflicts and Disputes –Continuation of unfair practices –Difficulty in maintaining and retaining Labor –Difficulty...

M Grace .. | 23/10/2020

0 0

Recruitment is the process of identifying and attempting to attract candidates who are capable of filling job vacancies. Sources of recruitment Two types : Internal External Internal: - Identify...

Teena D. | 12/01/2019

2 0

MBA-Introduction to management-Functions of managers
Functions of managers Managerial roles are useful tools for managers to achieve the organisational planned objectives. They include general administrative duties that need to be carried out virtually...

Teena D. | 08/01/2019

1 0

E-Commerce-- a short note!!
Electronic commerce is an emerging model of new selling and merchandising tools in which buyers are able to participate in all phases of a purchase decision, while stepping through those processes electronically...

Kousiki Chakraborty | 20/07/2018

1 0

Is accountancy science and art? Explain ?
Is accountancy science and art?:--Accountancy plays a very important role in these days of growing commercial and trade. Frequently various laws and Acts like—Company’s Act, M.R.T.P. Act are...

Kousiki Chakraborty | 05/07/2018

1 0

Looking for MBA Tuition Classes?

Find best tutors for MBA Tuition Classes by posting a requirement.

  • Post a learning requirement
  • Get customized responses
  • Compare and select the best

Looking for MBA Tuition Classes?

Find best MBA Tuition Classes in your locality on UrbanPro

Post your learning requirement is India's largest network of most trusted tutors and institutes. Over 25 lakh students rely on, to fulfill their learning requirements across 1,000+ categories. Using, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 6.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more