Nature and scope of managerial ecomnocies
It can be compared to science in a sense that it fulfils the criteria of being a science in following sense: Science is a Systematic body of Knowledge. The theory of games holds out the hope of solving certain problems concerning oligopolistic interminacy.
In the entire process of management and in each of the management activities such as planning, organising, leading and controlling, decision making is always essential. Although macroeconomics issues and policies command much of the attention in newspapers and on television, the micro- dimensions of the economy are also important and are often relevant to the day-to-day problems facing the manager.
Sound pricing practices depend much on cost control.
Nature and scope of managerial economics pdf
A model may be in the form of diagram, a verbal description or a mathematical description. In this model, the final demand is treated as exogenously determined and the input-output technique is used to find out the levels of activity in the various sectors of the economic system. The government changes its business policies whether the central government, state govt. It is a special branch of economics bridging the gap between abstract theory and managerial practice. Definition 3. Capital is invested it is employed for purchasing properties such as building, furniture, etc and for meeting the current expenses of the business. For whom to produce? These aspects are related to macro economics. It also goes deeper into such aspects as motives of holding inventory, cost of holding inventory, inventory control, and main methods of inventory control and management. The money expenses incurred in the process of production constitute the cost of production. The benefits of maximization and profit planning for the benefits, 2. For this purpose, trend projections are used. Capital Management Capital is the life of the modern business. See all related question in managerial economics. For the 1.
These decisions are taken scientifically. Capital Management Capital is the life of the modern business.
Robbins regards economics as a pure science of what is, which is not concerned with moral or ethical questions. The real world is also invariably complex.
It provides the basis for the empirical testing of theory. The nature of the assumptions and benefits, 3. The subject area of managerial economics is business firm.
17 explain the scope of managerial economics
This method is mainly concerned with the collection of data. Managerial Economics is a Science Managerial Economics is an essential scholastic field. Read More:. It refers to a procedure or mode of investigation by which scientific and systematic knowledge is acquired. The pronouncement concerning these necessitates cautious scrutiny of the demand for its product and costs of its manufacturing. Pricing is actually guided by consideration of cost plan pricing and the policies of public enterprises. Capital is invested it is employed for purchasing properties such as building, furniture, etc and for meeting the current expenses of the business. A good decision is one that is based on logic, considers all available data and possible alternatives and applies the quantitative approach. The capital budgeting process takes different forms in different industries. Profit Maximization or Profit Management The purpose of each producer and the business firm is to maximize profit. Business decisions are greatly influenced by pervading market structure and the structure of markets that has been evolved by the nature of competition existing in the market. Role of Managerial Economics in Business Development These decisions are based on the economic rationale and are valid in the existing economic environment.
The sales forecast acts as a link between the external uncontrollable factors and the internal controllable factors and are intimately related to general economic activity. Personnel decisions cover the areas of manpower planning, recruitment, selection, training and development, performance appraisal, promotion, transfer, etc.
Nature and scope of managerial economics ppt
So is considered in the periphery of the field of managerial economics, which is as follows. See all related question in managerial economics. Managers are thus engaged in a continuous process of decision-making through an uncertain future and the overall problem confronting them is one of adjusting to uncertainty. This goes on the daily routine work of the business. Cost information about the resources is very essential for business decision making. The government changes its business policies whether the central government, state govt. The problems of the business world attracted the attentions of the academicians from onwards.
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