Introduction To Managerial Economic Science - Gratis Report Notes

Nature of Managerial Economics

Managerial Economics in addition to Business economic science are the ii terms, which, at times guide hold been used interchangeably. Of late, however, the term Managerial Economics has move to a greater extent than pop in addition to seems to give the sack progressively the term Business Economics.

The prime number portion of a management executive inward a concern organisation is decision making in addition to forrard planning. Decision Making agency the procedure of selecting ane activity from ii or to a greater extent than alternative courses of activity whereas forrard planning agency establishing plans for the future. The inquiry of pick arises because resources such equally capital, land, labour in addition to management are limited in addition to tin live employed inward alternative uses. The determination making portion thus becomes ane of making choices or decisions that volition provide the most efficient agency of attaining a desired end, say, turn a profit maximization. Once determination is made well-nigh the exceptional goal to live achieved, plans equally to production, pricing, capital, raw materials, labour, etc., are prepared. Forward planning thus goes manus inward manus amongst determination making.

A important characteristic of the conditions, inward which concern organizations piece of work in addition to guide hold decisions, is uncertainty. And this fact of uncertainty non exclusively makes the portion of determination making in addition to forrard planning complicated but adds a unlike dimension to it. If knowledge of the hereafter were perfect, plans could live formulated without mistake in addition to hence without whatever demand for subsequent revision. In the existent world, however, the concern managing director rarely has consummate information in addition to the estimates well-nigh hereafter predicted equally best equally possible. As plans are implemented over time, to a greater extent than facts move known so that inward their light, plans may guide hold to live revised, in addition to a unlike course of pedagogy of activity adopted. Managers are thus engaged inward a continuous procedure of determination making through an uncertain hereafter in addition to the overall job confronting them is ane of adjusting to uncertainty.

In fulfilling the portion of determination making inward an uncertainty framework, economical theory tin live pressed into service amongst considerable advantage. Economic theory deals amongst a number of concepts in addition to principles relating, for example, to profit, demand, cost, pricing production, competition, concern cycles, national income, etc., which aided past times allied disciplines similar Accounting. Statistics in addition to Mathematics tin live used to solve or at to the lowest degree throw to a greater extent than or less lite upon the problems of concern management. The way economical analysis tin live used towards solving concern problems. Constitutes the dependent affair of Managerial Economics.

Definition of Managerial Economics

According to McNair in addition to Meriam, "Managerial Economics consists of the job of economical modes of thought to analyse concern situation."

Spencer in addition to Siegelman guide hold defined Managerial Economics equally "The integration of economical theory amongst concern exercise for the purpose of facilitating determination making in addition to forrard planning past times management."

We may, thus define Managerial Economics equally the dependent which deals amongst the application of economical theory to concern management. Managerial Economics thus lies on the borderline betwixt economic science in addition to concern management in addition to serves equally a twain betwixt economic science in addition to concern management.

Chart 1 – Economics, Business Management in addition to Managerial Economics.

Application of Economics to Business Management

The application of economic science to concern management or the integration of economical theory amongst concern practice, equally Spencer in addition to Siegelman guide hold position it, has the next aspects :-

1. Reconciling traditional theoretical concepts of economic science inward relation to the actual concern demeanor in addition to conditions. In economical theory, the technique of analysis is ane of model edifice whereby sure as shooting assumptions are made in addition to on that basis, conclusions equally to the demeanor of the firms are drown. The assumptions, however, brand the theory of the line solid unrealistic since it fails to provide a satisfactory explanation of that what the firms truly do. Hence the demand to reconcile the theoretical principles based on simplified assumptions amongst actual concern exercise in addition to develops appropriate extensions in addition to reformulation of economical theory, if necessary.
2. Estimating economical relationships, viz., measuring of diverse types of elasticities of demand such equally toll elasticity, income elasticity, cross-elasticity, promotional elasticity, cost-output relationships, etc. The estimates of these economical relationships are to live used for purposes of forecasting.
3. Predicting relevant economical quantities, eg., profit, demand, production, costs, pricing, capital, etc., inward numerical terms together amongst their probabilities. As the concern managing director has to piece of work inward an surroundings of uncertainty, hereafter is to live predicted so that inward the lite of the predicted estimates, determination making in addition to forrard planning may live possible.
4. Using economical quantities inward determination making in addition to forrard planning, that is, formulating concern policies and, on that basis, establishing concern plans for the hereafter pertaining to profit, prices, costs, capital, etc. The nature of economical forecasting is such that it indicates the grade of probability of diverse possible outcomes, i.e. losses or gains equally a final result of next each ane of the strategies available. Hence, earlier a concern managing director at that topographic point exists a quantified painting exhibit indicating the number o courses open, their possible outcomes in addition to the quantified probability of each outcome. Keeping this painting exhibit inward view, he decides well-nigh the strategy to live chosen.
5. Understanding important external forces constituting the surroundings inward which the concern is operating in addition to to which it must adjust, e.g., concern cycles, fluctuations inward national income in addition to authorities policies pertaining to world finance, financial policy in addition to taxation, international economic science in addition to unusual trade, monetary economics, labour relations, anti-monopoly measures, industrial licensing, toll controls, etc. The concern managing director has to appraise the relevance in addition to impact of these external forces inward relation to the exceptional concern unit of measurement in addition to its concern policies.

Characteristics of Managerial Economics

It would live useful to dot out sure as shooting primary characteristics of Managerial Economics, inward equally much it’s they throw farther lite on the nature of the dependent affair in addition to aid inward a clearer agreement thereof.

1. Managerial Economics is micro-economic inward character.
2. Managerial Economics largely uses that body of economical concepts in addition to principles, which is known equally 'Theory of the firm' or 'Economics of the firm'. In addition, it also seeks to apply Profit Theory, which forms portion of Distribution Theories inward Economics.
3. Managerial Economics is pragmatic. It avoids hard abstract issues of economical theory but involves complications ignored inward economical theory to human face the overall province of affairs inward which decisions are made. Economic theory appropriately ignores the multifariousness of backgrounds in addition to grooming found inward private firms but Managerial Economics considers the exceptional surroundings of determination making.
4. Managerial Economics belongs to normative economic science rather than positive economic science (also sometimes known equally Descriptive Economics). In other words, it is prescriptive rather than descriptive. The main body of economical theory confines itself to descriptive hypothesis, attempting to generalize well-nigh the relations amidst unlike variables without judgment well-nigh what is desirable or undesirable. For instance, the constabulary of demand states that equally toll increases. Demand goes downwardly or vice-versa but this contention does non tell whether the outcome is proficient or bad. Managerial Economics, however, is concerned amongst what decisions ought to live made in addition to hence involves value judgments.

Production in addition to Supply

Production analysis is narrower inward reach than cost analysis. Production analysis ofttimes proceeds inward physical terms piece cost analysis proceeds inward monetary terms. Production analysis mainly deals amongst unlike production functions in addition to their managerial uses.

Supply analysis deals amongst diverse aspects of furnish of a commodity. Certain of import aspects of furnish analysis are furnish schedule, curves in addition to function, constabulary of furnish in addition to its limitations. Elasticity of furnish in addition to Factors influencing supply.

Pricing Decisions, Policies in addition to Practices

Pricing is a really of import expanse of Managerial Economics. In fact, toll is the ness of the revenue of a line solid in addition to equally such the success of a concern line solid largely depends on the correctness of the prices decisions taken past times it. The of import aspects dealt amongst nether this expanse are :- Price Determination inward diverse Market Forms, Pricing methods, Differential Pricing, Product-line Pricing in addition to Price Forecasting.

Profit Management

Business firms are to a greater extent than often than non organized for the purpose of making profits and, inward long run, profits provide the primary mensurate of success. In this connection, an of import dot worth considering is the chemical element of uncertainty exiting well-nigh profits because of variations inward costs in addition to revenues which, inward turn, are caused past times trunk both internal in addition to external to the firm. If knowledge well-nigh the hereafter were fact, turn a profit analysis would guide hold been a really slow task. However, inward a ground of certainty, expectations are non e'er realized so that turn a profit planning in addition to measuring constitute the hard are of Managerial Economics. The of import acts covered nether this expanse are :- Nature in addition to Measurement of Profit, Profit Testing in addition to Techniques of Profit Planning similar Break-Even Analysis.

Capital Management

Of the diverse types in addition to classes of concern problems, the most complex in addition to able to a greater extent than or less for the concern managing director are probable to live those relating to the firm’s investments. Relatively large sums are involved, in addition to the problems are so complex that their disposal non exclusively requires considerable fourth dimension in addition to labour but is a term for top-level decision. Briefly, upper-case alphabetic lineament management implies planning in addition to trolls of upper-case alphabetic lineament expenditure. The main topics dealt amongst are :- Cost of Capital, Rate render in addition to Selection of Project.

The diverse aspects outlined higher upward correspond the major uncertainties which a ness line solid has to reckon with, viz., demand uncertainty, cost uncertainty, toll certainty, turn a profit uncertainty, in addition to upper-case alphabetic lineament uncertainty. We can, therefore, conclude the dependent affair of Managerial Economic consists of applying economical cripples in addition to concepts towards adjusting amongst diverse uncertainties faced past times a ness firm.

Managerial Economics in addition to Other Subjects

Yet to a greater extent than or less other useful method of throwing lite upon the nature in addition to reach of Managerial Economics is to examine its human relationship amongst other subjects. In this connection, Economics, Statistics, Mathematics in addition to Accounting deserve special mention.

Managerial Economics in addition to Economics

Managerial Economics has been described equally economic science applied to determination making. It may live viewed equally a special branch of economic science bridging the gulf betwixt pure economical theory in addition to managerial practice.

Economics has ii main divisions :- (i) Microeconomics in addition to (ii) Macroeconomics. Microeconomics has been defined equally that branch of economic science where the unit of measurement of study is an private or a firm. Macroeconomics, on the other hand, is aggregate inward graphic symbol in addition to has the entire economic scheme equally a unit of measurement of study.

Microeconomics, also known equally toll theory (or Marshallian economics) is the main beginning of concepts in addition to analytical tools for managerial economics. To illustrate diverse micro-economic concepts such equally elasticity of demand, marginal cost, the brusque in addition to the long runs, diverse marketplace forms, etc., all are of corking significance to managerial economics. The primary contribution of macroeconomics is inward the expanse of forecasting. The modern theory of income in addition to job has straight implications for forecasting full general concern conditions. As the prospects of an private line solid often depend greatly on full general concern conditions, private line solid forecasts depend on full general concern forecasts.

A survey inward the U.K has shown that concern economists guide hold found the next economical concepts quite useful in addition to of frequent application :-

1. Price elasticity of demand,
2. Income elasticity of demand,
3. Opportunity cost,
4. The multiplier,
5. Propensity to consume,
6. Marginal revenue product,
7. Speculative motive,
8. Production function,
9. Balanced growth, and
10. Liquidity preference.

Business economic science guide hold also found the next main areas of economic science equally useful inward their piece of work :-

1. Demand theory,
2. Theory of the firm-price, output in addition to investment decisions,
3. Business financing,
4. Public finance in addition to financial policy,
5. Money in addition to banking,
6. National income in addition to social accounting,
7. Theory of international trade, and
8. Economics of developing countries.

Managerial Economics in addition to Management Accounting

Managerial Economics is also closely related to accounting, which is concerned amongst recording the financial operations of a concern firm. Indeed, accounting information is ane of the principal sources of information required past times a managerial economist for his determination making purpose. For instance, the turn a profit in addition to loss contention of a line solid tells how good the line solid has done in addition to the information it contains tin live used past times managerial economist to throw important lite on the hereafter course of pedagogy of activity - whether it should improve or unopen down. Of course, accounting information telephone phone for careful interpretation. Recasting in addition to adjustment earlier they tin live used safely in addition to effectively.

It is inward this context that the growing link betwixt management accounting in addition to managerial economic science deserves special mention. The main task of management accounting is at nowadays seen equally beingness to provide the form of information which managers demand if they are to apply the ideas of managerial economic science to solve concern problems correctly; the accounting information are also to live provided inward a shape so equally to gibe easily into the concepts in addition to analysis of managerial economics.

Uses of Managerial Economics

Managerial economic science accomplishes several objectives.

First, it presents those aspects of traditional economics, which are relevant for concern determination making it existent life. For the purpose, it calls from economical theory the concepts, principles in addition to techniques of analysis which guide hold a bearing on the determination making process. These are, if necessary, adapted or modified amongst a thought to enable the managing director guide hold ameliorate decisions. Thus, managerial economic science accomplishes the objective of edifice suitable tool kit from traditional economics.

Secondly, it also incorporates useful ideas from other disciplines such a psychology, sociology, etc., if they are found relevant for determination making. In fact managerial economic science takes the assist of other academic disciplines having a bearing upon the concern decisions of a managing director inward thought of the carious explicit in addition to implicit constraints dependent to which resources allotment is to live optimized.

Thirdly, managerial economic science helps inward reaching a multifariousness of concern decisions.

1. What products in addition to services should live produced?
2. What inputs in addition to production techniques should live used?
3. How much output should live produced in addition to at what prices it should live sold?
4. What are the best sizes in addition to locations of novel plants?
5. How should the available upper-case alphabetic lineament live allocated?

Fourthly, managerial economic science makes a managing director a to a greater extent than competent model builder. Thus he tin capture the essential relationships which characterize a province of affairs piece leaving out the cluttering details in addition to peripheral relationships.

Fifthly, at the bird of the firm, where for diverse functional areas functional specialists or functional departments exist, e.g., finance, marketing, personal production, etc., managerial economic science serves equally an integrating agent past times coordinating the unlike areas in addition to bringing to conduct on the decisions of each subdivision or specialist the implications pertaining to other functional areas. It thus enables concern determination making non inward watertight compartments but inward an integrated perspective, the significance of which lies inward the fact that the functional departments or specialists often bask considerable autonomy in addition to attain conflicting coals.

Finally, managerial economic science takes cognizance of the interaction betwixt the line solid in addition to social club in addition to accomplishes the telephone substitution role of concern equally an agent inward the attainment of social in addition to economical welfare. It has come upward to live realized that concern portion from its obligations to shareholders has sure as shooting social obligations. Managerial economic science focuses attending on these social obligations equally constraints dependent to which concern decisions are to live taken. In so doing, it serves equally an musical instrument inward rehiring the economical welfare of the social club through socially oriented concern decisions.

Role in addition to Responsibilities of Managerial Economist

A managerial economist tin play a really of import role past times assisting the Management inward using the increasingly specialized skills in addition to sophisticated techniques which are required to solve the hard problems of successful determination making in addition to forrard planning. That is why, inward concern concerns, his importance is beingness growingly recognized. In developed countries similar the U.S.A., large companies employ ane or to a greater extent than economists. In our Blue Planet (India) too, large industrial houses guide hold come upward to recognize the demand for managerial economists, in addition to at that topographic point are frequent advertisements for such positions. Tatas in addition to Hindustan Lever employ economists. Indian Petrochemicals Corporation Ltd., a Government of Republic of Republic of India undertaking, also keeps an economist.

Let us examine inward specific terms how a managerial economist tin contribute to determination making inward business.

In this connection, ii of import questions demand live considered :-

1. What role does he play inward business, that is, what exceptional management problems lend themselves to solution through economical analysis?
2. How tin the managerial economist best serve management, that is, what are the responsibilities of a successful managerial economist?

Role of Managerial Economist

One of the principal objectives of whatever management inward its determination making procedure is to determine the telephone substitution factors which volition influence the concern over the menses ahead. In general, these factors tin live divided into ii category, viz., (i) External in addition to (ii) Internal. The external factors prevarication exterior the command management because they are external to the line solid in addition to are said to constitute concern environment. The internal factors prevarication inside the reach in addition to operations of a line solid in addition to hence inside the command of management, in addition to they are known equally concern operations.

To illustrate, a concern line solid is complimentary to guide hold decisions well-nigh what to invest, where to invest, how much labour to employ in addition to what to pay for it, how to toll its products in addition to so on but all these decisions are taken inside the framework of a exceptional concern surroundings in addition to the firm’s grade of liberty depends on such factors equally the government’s economical policy, the actions of its competitors in addition to the like.

Environmental Studies

An analysis in addition to forecast of external factors constituting full general concern conditions, e.g., prices, national income in addition to output, book of trade, etc., are of corking significance since every concern from is affected past times them.

Certain of import relevant questions inward this connexion are equally follows :-

1. What is the outlook for the national economy? What are the most of import local, regional or worldwide economical trends? What stage of the concern wheel lies right away ahead?
2. What well-nigh population shifts in addition to the resultant ups in addition to downs inward regional purchasing power?
3. What are the demands prospects inward novel equally good equally established markets? Will changes inward social demeanor in addition to fashions tend to expand or bound the sales of a company’s products, or perhaps brand the products obsolete?
4. Where are the marketplace in addition to client opportunities probable to expand or contract most rapidly?
5. Will overseas markets expand or contract, in addition to how volition novel unusual authorities legislation’s touching on functioning of the overseas plants?
6. Will the availability in addition to cost of credit tend to increment or decrease buying? Are coin or credit atmospheric condition ahead probable to live slow or tight?
7. What the prices of raw materials in addition to finished products are probable to be?
8. Is contest probable to increment or decrease?
9. What are the main components of the five-year plan? What are the areas where outlays guide hold been increased? What are the segments, which guide hold suffered a cutting inward their outlay?
10. What is the outlook regarding government’s economical policies in addition to regulations?
11. What well-nigh changes inward defense strength expenditure, taxation rates, tariffs in addition to import restrictions?
12. Will Reserve Bank’s decisions receive or depress industrial production in addition to consumer spending? How volition these decisions touching on the company’s cost, credit, sales in addition to profits?

Reasonably accurate answers to these in addition to similar questions tin enable management to chalk out to a greater extent than wisely the reach in addition to management of their ain concern plans in addition to to determine the timing of their specific actions. And it is these questions which introduce to a greater extent than or less of the areas where a managerial economist tin brand effective contribution.

The managerial economist has non exclusively to study the economical trends at the macro bird but must also translate their relevance to the exceptional manufacture / line solid where he works. He has to digest the ever growing economical literature in addition to propose exceed management past times agency of short, concern similar practical notes.

In a mixed economic scheme similar India, the managerial economist pragmatically interprets the intentions of controls in addition to evaluates their impact. He acts equally a twain betwixt the authorities in addition to the industry, translating the government’s intentions in addition to transmitting the reactions of the industry. In fact, authorities policies accuse out of the performance of industry, the expectations of the people in addition to political expediency.

Business Operations

A managerial economist tin also live helpful to the management inward making decisions relating to the internal operations of a line solid inward abide by of such problems equally price, charge per unit of measurement of operations, investment, expansion or contraction.

Certain relevant questions inward this context would live equally follows :-

1. What volition live a reasonable sales in addition to turn a profit budget for the adjacent year?
2. What volition live the most appropriate production Schedules in addition to inventory policies for the adjacent vi months?
3. What changes inward wage in addition to toll policies should live made now?
4. How much cash volition live available adjacent calendar month in addition to how should it live invested?

Specific Functions

A farther thought of the role of managerial economists tin live seen from the next specific functions performed past times them equally revealed past times a survey pertaining to U.K. conducted past times K.J.W. Alexander in addition to Alexander G. Kemp :-

1. Sales forecasting.
2. Industrial marketplace research.
3. Economic analysis of competing companies.
4. Pricing problems of industry.
5. Capital projects.
6. Production programs.
7. Security/investment analysis in addition to forecasts.
8. Advice on merchandise in addition to world relations.
9. Advice on primary commodities.
10. Advice on unusual exchange.
11. Economic analysis of agriculture.
12. Analysis of underdeveloped economics.
13. Environmental forecasting.

The managerial economist has to assemble economical data, analyze all pertinent information well-nigh the concern surroundings in addition to ready seat papers on issues facing the line solid in addition to the industry. In the instance of industries prone to rapid technological advances, he may guide hold to brand a continuous assessment of the impact of changing technology. He may guide hold to evaluate the upper-case alphabetic lineament budget inward the lite of brusque in addition to long-range financial, turn a profit in addition to marketplace potentialities. Very often, he may guide hold to ready speeches for the corporate executives.

It is thus clear that inward exercise managerial economists perform many in addition to varied functions. However, of these, marketing functions, i.e., sales forecasting in addition to industrial marketplace research, has been the most important. For this purpose, they may compile statistical records of the sales performance of their ain concern in addition to those relating to their rivals, ship our analysis of these records in addition to study on trends inward demand, their marketplace shares, in addition to the relative efficiency of their retail outlets. Thus piece carrying out their functions; they may guide hold to undertake detailed statistical analysis. There are, of course, differences inward the relative importance of the diverse functions performed from line solid to line solid in addition to inward the grade of sophistication of the methods used inward carrying them out. But at that topographic point is no uncertainty that the chore of a managerial economist requires alertness in addition to the mightiness to piece of work nether pressure.

Economic Intelligence

Besides these functions involving sophisticated analysis, managerial economist may also provide full general word service supplying management amongst economical information of full general involvement such equally competitors prices in addition to products, taxation rates, tariff rates, etc. In fact, a proficient bargain of published fabric is already available in addition to it would live useful for a line solid to guide hold someone who understands it. The managerial economist tin do the chore amongst competence.

Participating inward Public Debates

Many well-known concern economists participate inward world debates. Their advice in addition to views are beingness sought past times the authorities in addition to social club alike. Their practical sense inward concern in addition to manufacture ads stature to their views. Their world recognition enhances their stature inward the organisation itself.

Indian Context

In the indian context, a managerial economist is expected to perform the next functions :-

1. Macro-forecasting for demand in addition to supply.
2. Production planning at macro in addition to micro levels.
3. Capacity planning in addition to product-mix determination.
4. Economics of diverse productions lines.
5. Economic feasibility of novel production lines/processes in addition to projects.
6. Assistance inward preparation of overall evolution plans.
7. Preparation of periodical economical reports bearing on diverse matters such equally the company’s product-lines, hereafter growth opportunities, marketplace pricing situation, full general business, in addition to diverse national/international factors affecting manufacture in addition to business.
8. Preparing briefs, speeches, articles in addition to papers for exceed management for diverse Chambers, Committees, Seminars, Conferences, etc.
9. Keeping management informed o diverse national in addition to international developments on economic/industrial matters.

With the adoption of the New Economic Policy, inward 1991, the macro-economic Environment inward Republic of Republic of India is changing fast at a footstep that has been rarely witnessed before. And these changes guide hold tremendous implications for business. The managerial economist has to play a much to a greater extent than important role. He has to constantly gauge the possibilities of translating the rapidly changing economical scenario into feasible concern opportunities. As Republic of Republic of India marches towards globalization, he volition guide hold to translate the global economical events in addition to notice out how his line solid tin avail itself of the carious export opportunities or of establishing plants abroad either wholly owned or inward association amongst local partners.

Responsibilities of Managerial Economist

Having examined the important opportunities earlier a managerial economist to contribute to managerial determination making, allow us at nowadays examine how he tin best serve the management. For this, he must thoroughly recognize his responsibilities in addition to obligations.

A managerial economist tin serve management best exclusively if he e'er keeps inward hear the main objective of his business, viz., to brand a turn a profit on its invested capital. His academic grooming in addition to the critical comments from people exterior the concern may Pb a managerial economist to adopt an apologetic or defensive mental attitude towards profits. Once management notices this, his effectiveness is almost sure as shooting to live lost. In fact, he cannot await to succeed inward serving management unless he has a strong personal conviction that profits are essential in addition to that his primary obligation is to aid heighten the mightiness of the line solid to brand profits.

Most management decisions necessarily concern the future, which is rather uncertain. It is, therefore, absolutely essential that a managerial economist recognizes his responsibleness to brand successful forecasts. By making best possible forecasts in addition to through constant efforts to improve upon them, he should aim at minimizing, if non completely eliminating, the risks involved inward uncertainties, so that the management tin follow a to a greater extent than orderly course of pedagogy of concern planning. At times, he volition guide hold to reassure the management that an of import tendency volition continue; inward other cases, he may guide hold to dot out the probabilities of a turning dot inward to a greater extent than or less activity of importance to management. In whatever case, he must live willing to brand considered but fairly positive statements well-nigh impending economical developments, based upon the best possible information in addition to analysis in addition to stake his reputation upon his judgment. Nothing volition construct management confidence inward a managerial economist to a greater extent than speedily in addition to thoroughly than a tape of successful forecasts, well-documented inward advance in addition to modestly evaluated when the actual results move available.

A few corollaries to the higher upward proffer demand also live emphasized here.

First, he has a major responsibleness to "alert management at the earliest possible moment" inward instance he discovers an mistake inward his forecast. By promptly drawing attending to changes inward forecasting conditions, he volition non exclusively assist management inward making appropriate adjustment inward policies in addition to programs but volition also live able to strengthen his ain seat equally a fellow member of the management squad past times keeping his fingers on the economical pulse of the business.

Secondly, he must works life in addition to maintain many contacts amongst individuals in addition to information sources, which would non live right away available to the other members of the management. Extensive familiarity amongst reference sources in addition to fabric is essential, but it is soundless to a greater extent than of import that he knows individuals who are specialists inward exceptional fields having a bearing on his work. For this purpose, he should bring together professional person associations in addition to guide hold active portion inward them. In fact, ane of the best agency of determining the caliber of a managerial economist is to evaluate his mightiness to obtain information speedily past times personal contacts rather than past times lengthy inquiry from either readily available or obscure reference sources. Within whatever business, at that topographic point may live a wealth of knowledge in addition to sense but the managerial economist would live truly useful if he tin supplement the existing know-how amongst additional information in addition to inward the quickest possible manner.

Again, if a managerial economist is to live truly helpful to the management inward successful determination making in addition to forrard planning, he must live able to earn total status on the concern team. He should live create in addition to fifty-fifty offering himself to guide hold upward special assignments, live that inward study teams, committees or special projects. For, a managerial economist tin exclusively portion effectively inward an atmosphere where his success or failure tin live traced non exclusively to his basic ability, grooming in addition to experience, but also to his personality in addition to capacity to win continuing back upward for himself in addition to his professional person ideas. Of course, he should live able to limited himself clearly in addition to only in addition to must e'er seek to minimize the job of technical terminology inward communicating amongst his management executives. For, it is well-known that if management does non understand, it volition almost automatically reject. Further, piece intellectually he must live inward melody amongst industry’s thinking the wider national perspective should non live absents from his advice to exceed management.

Questions on Managerial Economics

1. Define managerial economic science amongst definition.
2. How does managerial economic science differ from economics?
3. Write a brusque banknote on managerial economist.
4. Explain the reach of managerial economics.
5. Explain role in addition to responsibilities of managerial economist.

Article Source :- My university's complimentary study notes on managerial economics, Sem I, 2009-2010. Article sharing motto is to aid students or readers to acquire in addition to understand, the basics of Managerial Economics, via self-study.