ch1 - Econ 106 Class notes Chapter 1 The Fundamentals of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 106 Class notes Chapter 1. The Fundamentals of Managerial Economics A. Definition of Topic . 1. Economics 2. Manager 3. Managerial Economics Definition Managerial Economics : (Vague, very poor generic definition provided by the textbook). Managerial Economics is the study of how to direct scarce resources in the way that most efficiently achieves a managerial goal. Better definition- ME is the analysis of major management decisions using the tools and concepts of economics: supply and demand, resource allocation, efficiency, cost-benefit, trade-offs, competition, strategic behavior, industry organization, market structure, etc. ME is the study of the economic framework and the economic tools used to make management decisions, in both the private and public sector. ME provides a formal, systematic decision-making framework that facilitates and enhances sound decision making within organizations. ME focuses on the prescriptive approach to managerial decision, meaning a very applied approach (instead of theoretical) to analyzing practical decisions actually faced by businesses and governments. Most of the analytical methods covered in ME were developed in response to important, actual real-world, recurring managerial decisions, such as optimal pricing (e.g., pricing in the airline industry taking into account consumer
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

ch1 - Econ 106 Class notes Chapter 1 The Fundamentals of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online