Business Economics Or Managerial Economics: Introduction
Managerial
Economics generally refers to the integration of economic theory with business
practice. While economics provides the
tools which explain various concepts such as Demand, Supply, Price, Competition
etc. Managerial Economics applies these tools to the management of
business. In this sense, Managerial
Economics is also understood to refer to business economics or applied
economics.
Definitions
of Managerial Economics
According to
Prof. Spencer Sigelman, Managerial Economics deals with integration of economic
theory with business practice for the purpose of facilitating decision making
and forward planning by management.
According to
Prof. Hauge, Managerial Economics is concerned with using logic of economics,
mathematics & statistics to provide effective ways of thinking about
business decision problems.
According to
Prof. Joel Dean, The purpose of Managerial Economics is to show how economic
analysis can be used in formulating business policies.