Managerial Economics - Definitions

According to Prof. Evan J Douglas, Managerial economics is concerned with the application of business principles and methodologies to the decision making process within the firm or organization under the conditions of uncertainty. It seeks to establish rules and principles to facilitate the attainment of the desired economic aim of management. These economic aims relate to costs, revenue and profits and are important within both business and non business institutions.

Spencer and Siegleman defined managerial Economics as “the integration of economic theory with business practice for the purpose of facilitating decision making and forward planning of management” managerial economics helps the managers to analyze the problems faced by the business unit and to take vital decisions. They have to choose from among a number of possible alternatives. They have to choose that course of action by which the available resources are most efficiently used.

Cristopor I Savage and John R Small opinioned that “managerial economics is some thing that concerned with business efficiency”.

In the words of Michael Baye, “Managerial Economics is the study of how to direct scares resources in a way that mostly effectively achieves a managerial goal”.

To quote Mansfield, “Managerial economics is concerned with the application of economic concepts and economic analysis to the problems of formulating rational managerial decisions.

Reference:

ICSI

Shivaji University

LPU

Calicut University

Rai University

Pondicherry University