--%>

Explain characteristics of managerial or business economics

Explain the chief characteristics of managerial or business economics.

E

Expert

Verified

The significant features of managerial economics are as follows:

1) Managerial economics is type of Micro economic in character. Since it studies the problems of a business firm not the whole economy.

2) Managerial economics mainly uses the body of economic principles and concepts that is termed as “Economics of the firm” or “Theory of the Firm”.

3) It is pragmatic. This is purely practical oriented. Therefore Managerial economics considers the specially environment of a firm or business for decision making.

4) Managerial economics is Normative quite than positive economics (descriptive economics). It is prescriptive to solve exact business problem by giving importance to firms objectives and aim.

5)  Macro economics is also helpful to managerial economics since this gives intelligent understanding of the environment in that the business is operating.

6)  This is management oriented.

   Related Questions in Managerial Economics

  • Q : Limitation for using illustrations of

    Illustrations of economic capital would NOT contain: (i) an accountant's computer. (ii) 1,000 shares of stock within Google. (iii) a sixteen-pound sledgehammer. (iv) tires upon an eighteen-wheeler truck. (v) paper into the printer of a romance novelis

  • Q : Social Welfare and Labor Market

    A labor market operates inefficiently when labor is hired only up to a point where, that the last worker: (1) VMP = w. (2) VMP minus MRC exceeds zero and is maximized. (3) P x MPPL = w. (4) added total revenue equals added total cost.

    Q : Diminishing Returns and Increasing Costs

    I have a problem in economics on Diminishing Returns and Increasing Costs. Please help me in the following question. The concave (or bowed out) production possibilities frontier means that the opportunity costs are: (i) Constant (ii) Increasing (iii)

  • Q : Substitution Effect within Supply of

    When wage rates rise above $25 per hour in this figure given below, in that case the: (1) worker works more diligently to ensure that she keeps her job. (2) employer pays an excessively high efficiency wage. (3) income effect exceeds the substitution

  • Q : Define the term full cost concept

    Define the term full cost concept.

  • Q : Explain the assumptions of Law

    Explain the assumptions of Law Diminishing Returns.

  • Q : Illustrates the case of customary

    Illustrates the case of customary pricing with details?

  • Q : Define the term unitary elastic Define

    Define the term unitary elastic.

  • Q : Illustrates the types of revenue cost

    Illustrates the types of revenue?

  • Q : Increases in orders for new capital A

    A change in a derived demand is best demonstrated while there are increases in: (1) sales of roasted peanuts during baseball season. (2) new car sales during economic downturns. (3) orders for new capital throughout economic booms. (4) beef prices when cowboys unioniz