How Nature & Scope of Managerial Economics plays Crucial Role in Management?
Managerial Economics is defined as therncombination of economic theory along with business practice. The very famousrnfield “Economics” offered tools which are applied in the business to gainrnsuccess. All the applications of economics help to maintain management. In thisrnblog, we will get to know about the nature and scope of Economics Management.rnMoreover, you can hire managerial economics assignment help for more information at BookMyEssay without any hassle.
As you know, Managerial Theory refersrnto features of economic theory and its applications which helps to takerndecisions while doing management. This theory is pragmatic, that’s why it isrnwidely used. Here it concerned with the efficacious analytical tools that helprnto take the right decisions at a time.
Along with Analytic tools, there arernconceptional tools too which also help the organization to take scientificrndecisions based on the data. For Business Planning and Strategies formation, itrnplays a crucial role.
Naturernof Managerial Economics:
This theory helps to fill the gaprnbetween managerial practice and abstract theory. Let us explore its naturernwhich helps in various ways in the organization:
DecisionrnMaking
Decision Making is one of the mostrncrucial steps which is anyhow taken by the organization to deal with thernsituations. It can be only done if you are enriched with technical andrnconceptual skills. Managerial Economics concentrate on the process of decisionrnand its model so that only the best outcomes will come at the end. You can say,rnit is the right way to analyse the performance of the business by makingrndecisions.
The basic function of a manager in arncompany is to make decisions for a specific situation and do forward planning.rnNow the decisions could be any like inventory decision, technical relatedrndecisions, financial decisions, development process decisions, marketingrndecisions, production decisions, cost decisions, personnel decisions,rnmiscellaneous decisions and so forth. Only Good manager know what decisionsrnshould be taken. For that, it is necessary to have clarity in goals so thatrnfast and secure decision will be taken in favor of the company.
Once you are clear with the nature ofrnManagerial Economics, let us figure out its Scope
It is surely a developing subjectrnwhich has a large area of scope. Its root can be seen in economics theory too.
PositivernEconomics
Positive economics always questionrnwhat is it? Rather than taking into account whether it is providing some moralrnor ethical values or not. Managerial economics looks neutral to both the endsrneither you talk about positive or normative economics. In this positiverneconomic, the designated economist has no right to pass the judgment on thernfolly or wisdom. For instance, the sales as well as manufacturing of itemsrncigarettes, Alcohol is injurious to health but an economist cannot make give arnjudgment on the product as it’s not an area of concern. Plus, these itemsrnsatisfy the demands of humans. Hire economics homework help for more detailed knowledge.
NormativernEconomics
In Positive Economics its onlyrnconcerns with the item but in Normative Economics, it is not so. It relates tornthe description of the Item. It will help to determine what will the cost ofrnproducts, what wage should be fixed for employees, how much incomes can be distributedrnetc. All this come under Normative Economics. Here we are interested to knowrnwhat should happen in the future rather than what already happened in the past.rnIn spite of describing what particular organization is performing, they explainrnwhat should be done to make all the decisions effective.
To attain all these objective, therernis no need to assume cetreis paribus, however, you just to define the latestrnpolicies that are ruling the business world. The most significant feature ofrnmanagerial economics is that it finds the right decisions while going throughrnintense logical and analytical thinking. It basically relies on a cause &rneffect relationship which help to get the accurate results. The scope ofrnmanagerial economics is not limited to its nature and scope as it is a vastrnfield that helps the manager and company to take the best steps.
This blog explains the nature andrnscope of the managerial economics which is not enough to study if you get arnhigh score in the examination or if you want to show your professionalrnknowledge on this topic. Explore every feature of managerial economics byrnhiring cheap homework help. Theyrnhave a team of highly dedicated experts who are well versed with the topic.
BookMyEssay a pioneerrnacademic service provider company work deliriously to deliver the best Managerial Economics assignment writing help atrnaffordable prices. Students can avail their services from any part of the worldrnas their helpdesk is 24*7. They believe in making a strong connection withrncustomers hence provide them 100% confidentiality. Feel free to visit thernwebsite or you can mail them for more information.