1session1 - Managerial Economics (ME) Student of ME: Will I...

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Managerial Economics (ME) Student of ME: Will I ever use this? Prof: Only if your career is successful. Managerial economics is economic tools for today’s decision makers Keat and Young
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What is Economics Economics is the study of how society manages its scarce resources. Economic activities are those activities, which are performed for money sake. These form the subject matter of economics .
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Microeconomics It is the study of individual consumers and producers in specific markets. Supply and demand Pricing of output Production processes Cost structure Distribution of income and output
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Macroeconomics It is the study of the aggregate economy. National Income Analysis (GDP) Unemployment Inflation Fiscal and Monetary policy Trade and Financial relationships among nations
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Why Managerial Economics How do managers make good operating and planning decisions? When are the characteristics of markets so attractive that entry becomes appealing? When are these attributes so unattractive that exit is preferable to continued operation? Why do some offer pay well, while others offer only minimal financial rewards?
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What is Managerial Economics Managerial economics is the study of the use of economic analysis to make business decisions involving the best use (allocation) of an organization’s scarce resources. The application of economic theory and the tools of decision science to examine how an organization can achieve its aims or objectives most efficiently and to find the optimal solution to managerial decision problems Integrates and applies microeconomic theory and methods to decision making problems faced by private, public, and not-for-profit organizations Managerial economics deals with microeconomic reasoning on real world problems such as pricing decisions selecting the best strategy in different competitive environments
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1session1 - Managerial Economics (ME) Student of ME: Will I...

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