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managerial economics 1 Managerial economics Managerial economics(sometimes referred to as business economics), is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic surmise and economics in practice. It draws heavily from quantitative techniques such as regression analysis and correlation, Lagrangian calculus (linear). If there is a unifying(a) theme that runs through most of managerial economics it is the set out to optimize business decisions given the firms objectives and given constraints oblige by scarcity, for example through the use of operations research and programming. Almost any business decision can be analyzed with managerial economics techniques, but it is most commonly applied to: Risk analysis - various models be use to quantify risk and asymmetric information and to employ them in decision rules to manage risk. Production analysis - microeconomic techniques are used to analyze production efficiency, optimal factor allocation, costs, economies of home base and to estimate the firms cost function.

Pricing analysis - microeconomic techniques are used to analyze various pricing decisions including ecstasy pricing, joint product pricing, price discrimination, price elasticity estimations, and choosing the optimum pricing method. Capital budgeting - Investment theory is used to bear witness a firms capital purchasing decisions. At universities, the subject field is taught primarily to advanced undergraduates and graduate business schools. It is approached as an integrating subject. That is, it integrates many concepts from a wide variety of prerequisite courses. In many countries it is possible to read for a degree in Business Economics which often covers managerial economics, financial economics, plot of land theory, business forecasting and industrial economics. Article Sources and Contributors 2 Article Sources and Contributors Managerial economics... If you want to get a full essay, order it on our website: Orderessay

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