Explain managerial economics as a tool for decision making

Question

Does managerial economics as a tool for decision making? Explain this term.

Answer 1

Decision making: It is an integral part of modern management. Perhaps the most significant function of the business manager is this. It is the process of selecting one action from two or more option course of actions. Resources like land, labour and capital are restricted and can be employed in different uses, therefore the question of choice is arises.

Managers of business organizations are constantly faced along with broad variety of decisions in the areas of product selection, pricing, cost control, plant expansion and asset management. Manager has to select best among the alternatives by that available resources are most efficiently used for getting the desired aims.