What are the main features of managerial economics

Question

What are the main features of managerial economics?

Answer 1

Following are the Chief Characteristics of managerial economics:

i) Managerial economics is like micro economic. As it involves studying the problems of a business firm not the whole economy.
ii) Managerial economics largely uses the body of economic concepts and principles which is known as “Theory of the Firm” or “Economics of the firm”.
iii) Managerial economics is pragmatic.  It is purely practical oriented. Managerial economics think about the particular environment of an organisation or business for decision making.
iv) Managerial economics is Normative rather than positive.
v) Macro economics is also useful to managerial economics since it provides intelligent understanding of the environment in which the business is operating.
vi) It is management oriented.