The managerial economist often needs focused studies of specific problems and opportunities. Economic theory has the characteristics of both micro and macro economics. Role of managerial economis times, a managerial economist has to prepare speeches for top management.
With the growing variability and unpredictability of the business environment, business managers have become increasingly concerned with finding rational and ways of adjusting to an exploiting environmental change.
His focus on long term trends helps maximise profits and ensures the ultimate success of the firm. They have to ensure that once the decision is taken, it is to be implemented within the minimum time and cost. The decision to hold inventories to meet demand is quite important for a firm and in certain situation the level of inventories serves as a guide to plan production and is therefore, a strategic management variable.
Managerial economics is closely related to accounting. It is influenced by many factors such as physical, social, temperamental and psychological. The functions of a managerial economist can be broadly defined as the study and interpretation of economic data in the light of the problems of the management.
One of the most widely discussed structures is the postulational or axiomatic method of theory formulation. Once the decision is taken it is implemented within the minimum time and cost.
Economic Theory and Managerial Theory: He has to consistently examine the probabilities of transforming an ever-changing economic environment into profitable business avenues. Production analysis frequently proceeds in physical terms. Instead of explaining what a firm is doing, we explain what it should do to make its decision effective.
The method of enquiry is a very important aspect of science, perhaps this is the most significant feature.
Both in deductive inferences and inductive generalisations, the underlying principle is the interrelationships. To conclude, a managerial economist has a very important role to play. The chief contribution of macro-economics is in the area of forecasting. Economic theory studies only economic aspect of the problem whereas managerial theory studies both economic and non-economic aspects.
Most of the managerial economists are of the opinion that managerial economics is fundamentally normative and prescriptive in nature. A good decision is one that is based on logic, considers all available data and possible alternatives and applies the quantitative approach.
To discharge his role successfully, he must recognise his responsibilities and obligations. Statistics supplies many tools to managerial economics.
He is also involved in advicing the management on public relations, foreign exchange, and trade.Role of Managerial Economics in Business Development: Decision making is an integral part of today’s business management.
Making a decision is one of the most. These aspects may also be defined as the ‘Subject-Matter of Managerial Economics’. In recent years, there is a trend towards integrations of managerial economics and operations research.
Hence, techniques such as linear programming, inventory models and theory of games have also been regarded as a part of managerial economics. How can the answer be improved?Tell us how.
The overall role of managerial economics is to increase the efficiency of decision making in businesses to increase profit. Pricing Managerial economics assists businesses in determining pricing strategies and appropriate pricing levels for their products and services.
Role of a managerial economist in business 1. Role of a Managerial Economist in business Making decisions and processing information are the two primary tasks of managers. managerial economics decides the business is going towards profit or loss.
In the modern era, the business decision is increasing. So Role And Importance Of Managerial Economics In Choosing Right Decisions (Step-by-Step) increasing. The managerial economics is useful in coordinating the various activities of a business.Download