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Real business practices and traditional economic theory

Illustrates the ways in managerial economics bridges between real business practices and traditional economic theory?

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Managerial economics reduces the gap in between traditional economic theory and real business practices by two methods. Initially, it gives number of tools and techniques to enable the manager to become additionally competent to take decisions in real and practical circumstances. Secondly, this serves as an integrating course to demonstrate the interaction between different areas wherein the firm operates.

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