SCOPE AND CHARACTERISTICS OF MANAGERIAL ECONOMICS.pptx

Managerial economics involves an analysis of the allocation of the resources available to a firm, or a unit of management among the activities of that unit. It makes use of economic theories and concepts and assists managers to make rational decisions.

1. TOPIC COVERED SCOPE CHARACTERISTICS

2. Diagram Representation Concept & Techniques of ME Area of Study ( 6 scope) Optimum Solution to the Problem Applied to

3. SCOPE OF MANAGERIAL ECONOMICS

4. Demand Analysis and Forecasting Forecasting Sales Manipulating Demand (P,P,F)

5. Cost and Production Analysis Efficient Allocation of Scarce Resources For decision cost plays a vital role Minimizing cost Maximizing production Take up cost concepts and Production Concepts CC deals with Monetary terms PC deals with Physical terms

6. Pricing Decisions ,Policies and Practices Core of Managerial Economics Incorrect Policies will leads to failure of the business To work efficient in market Concepts of Pricing

7. Profit Management Profit is the life blood of an organisation Profit= Cost – Revenue Concepts of Profit Long Term investment

8. Capital Management Planning and control of expenditure Capital Concepts like Capital budgeting, Cost of capital, Rate of Return , Selection of the project

9. Linear Programming and Theory of Games

10. Characteristics of ME