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Business Economics - Meaning

"Economics in corporate environment" refers to Business Economics. This type of economics puts and uses microeconomics analysis for making specific business decisions. Elements of economics and economic theory become the subject of business economics. It uses techniques of mathematics such as correlation and regression analysis to derive best and reunite decisions which are undertaken in business situations as a result of scarceness. Scope of business economics includes problems and difficulties related to business organization, management, and strategy.

With the use of economic theory and quantitative methods, Business Economics ensures the following in the business:

  • Business enterprises are evaluated.
  • There is contribution of various factors for structures of organizational diversities.
  • To maintain a firm's relationship with resources such as labor, Capital and product markets in an optimum manner.

Issues and difficulties with which Business Economics is concerned -

  • How to do expansion of firms - whether horizontally, spatially or vertically.
  • Entrepreneurship and its role.
  • Various organizational structure and its importance.
  • To know relationship between firms and its employees.
  • Who provides customers, capital and the government?
  • Business Environment considered

Terms related with Business Economics are:

  • Industrial Economics
  • Managerial Economics
  • Industrial Organization

Definition of business economics by various universities -

University of East London -  "Business Economics deals with issues like the ways markets work; what firms do what their motives are, how they perform; and the role of government in regulating business activity".

According to Harvard University - "Business Economics uses economic methods to examine practical aspects of business, including management, business administration, and related fields of business economics."