Managerial Economics

Abstract

What is managerial economics? Managerial economics extracts from microeconomic theory those concepts and techniques that enable managers to select strategic direction, to allocate efficiently the resources available to the organization, and to respond effectively to tactical issues. All such mangerial decision making seeks to do the following: 1) identify the alternatives 2) select the choice that accomplishes the objective(s) in the most efficient manner 3) taking into account the constraints 4) and the likely actions and reactions of rival decision makers.