Introduction to managerial economics

MANAGERIAL ECONOMICS

is to draw more attention to major decision problems and to present the principles of economic analysis which is required for optimal decision- making

Profit Analysis

money earned after taking explicit and implicit costs into account.

DEMAND ANALYSIS

Analysis of market demand for the product is necessary for the management in order to take decisions regarding production, cost allocation, product pricing,

ECONOMIC INTELLIGENCE

enables businesses to monitor competitor activities, assess their market positions, and identify potential threats.

LONG TERM PLANNING

projecting revenues, expenses, and key factors that have a financial impact on the organization.

Relationship of Managerial Economics to Mathematical Economics

helps to perform quantifiable experiments and create models for predicting future economic growth. Advances in computing power, large-data techniques, and other advanced mathematical technologies have played a major role in making quantitative methods a fundamental aspect of economics.

THEORIES OF THE

FIRM

Approach to economics focusing on the determination of goods, outputs, and income distributions in markets through supply and demand—the theory of the firm is a microeconomic concept that states that a firm exists and make decisions to maximize profits.

PROFIT

Financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

PROFIT MAXIMIZATION

is the principle that every firm should operate in order to make a profit.