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Managerial Economics Principles (LibreTexts)

  • Page ID
    44755
    • Anonymous
    • LibreTexts

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    Managerial Economics refers to the application of economic theory and the tools of decision science to examine how an organization can achieve its aims or objectives most efficiently. Managerial decision-making problems arise in an organization when they seek to achieve some objective subject to constraints. For example, a telecommunication company may try to provide its service to as many customers as possible at the lowest possible cost. A hotel may seek to rent its room to the maximum tourists with limitations on its physical resources and budget. A university may aim to provide education to as many students as possible subject to the physical and financial constraints it faces. Managerial Economics is a link between two disciplines, which are management and economics. The management discipline focuses on a number of principles that aid the decision-making process of organizations. On the other hand, economics is related to the optimum allocation of limited resources for attaining the set objectives of organizations.


    This page titled Managerial Economics Principles (LibreTexts) is shared under a CC BY-SA 3.0 license and was authored, remixed, and/or curated by Anonymous via source content that was edited to the style and standards of the LibreTexts platform.