Operational or internal issues of managerial economics

Question

What are the operational or internal issues of managerial economics?

Answer 1

The following aspects may said to be fall under internal issues:

i. Demand analysis and Forecasting: The demands for the firm’s product would change in with the change in price, consumer’s income, his taste etc. which are the determinants of demand.
ii. Cost analysis: Assessment of cost is an essential part of managerial problems.
iii. Pricing Decisions: The firms try to earn profit which depends upon correctness of pricing decisions.
iv. Profit Analysis: All business organisations which are working for profit, it is considered an important measure of success.
v. Capital budgeting: The manager has to estimate correctly profitability of an investment and to properly allocate the capital.
vi. Production and supply analysis: Production analysis is proceeds in physical terms while cost analysis proceeds in monitory term.