--%>

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 : Explain the about Fiscal Policy Explain

    Explain the about Fiscal Policy.

  • Q : Elasticity of Demand for Labor The

    The elasticity of demand for labor is directly associated to: (w) labor’s share of total costs. (x) the elasticity of demand for output. (y) the ease of substitution between labor and other resources. (z) All of the above.

    Q : States the term fixed cost in briefly

    States the term fixed cost in briefly.

  • Q : Most elastic to least elastic ranking

    For most kinds of labor, the most accurate ranking of labor supplies through most elastic to least elastic is most likely: (1) firm, small industry, occupation. (2) economy, individual, occupation. (3) firm, economy, occupation. (4) individual worker,

  • Q : Persuade competitors by cartel member

    When a cartel member can persuade competitors to keep the cartel price but secretly give a discount price to certain customers, profits will rise: (w) for all members of the cartel. (x) since price cuts are only given to assigned customers. (y) as a result of an incre

  • Q : Explain the money cost concept briefly

    Explain the money cost concept briefly.

  • Q : Use of Screening and Credentialism

    Critics of the wide use of screening and signaling within hiring practices argue which: (w) formal training is never very important in preparing workers with necessary skills. (x) worker credentials tend to be negatively related to productivity. (y) l

  • Q : Explain the reasons for demand curve

    Explain the reasons for demand curve slopes downward.

  • Q : Pay the lowest wages in market

    Occupations along with the highest percentage of women workers tend to: (1) pay the highest wages. (2) need relatively more human capital and experience. (3) pay the lowest wages. (4) require very small human capital or experience.

  • Q : Illustrates the meaning of Demand

    Illustrates the meaning of Demand?