Managerial economics indulges in the application of concepts and theories that help in solving problems in the economy. Brander and Perloff (2018) stated that managers use the ideas gained from these tools in decision making, which helps in bridging the gap between practice and theory. The purpose of the research is to analyze the scope of managerial economics and how economic concepts, tools, methodology, and theories will help in the management of units. The chief reason why I am writing this paper is to assist in understanding the scope of managerial economics and the reasons why it plays a significant role in the business world. I am going to approach this topic by first looking at the scope of economics, which will pave the way for how it came to its implementation. I will also look at nature, types of managerial economics, responsibilities, functions, structure, and principles. In this case, I will exhaustively outline primary facts that are essential in this research that will help in understanding the topic. The study bases on a factual report that seeks to describe the primary factors associated with managerial economics. One of the manager points that I will look at is the nature, scope, principles, and impact of managerial economics in business. The reason why readers will be interested in these topics is that is will help them in understanding how to apply the logic from theories into practice (Brander and Perloff 2018).
Also, understanding the scope of managerial economics, one will have to look at both micro and macroeconomics. Besides, it's widely applied in solving organization problems from various departments such as accounting, sales, and production. In micro-economics, it helps in resolving issues that arise from an operation such as human economics and production. Theories that solve issues related to microeconomics include the theory of capital and investment, the theory of demand, and pricing theory. Macro-economic indulges in solving problems that link to the business environment, which can be economic, social, and political environment. Managerial economics helps in bridging the gap between the environs and the organization's targets and goals. When describing the nature of managerial economics, one needs to outline the different characters it holds — some of these characteristics base on multi-disciplinary, art and science, prescriptive, and normative discipline. People consider managerial economics is as an art and science that requires logical thinking. Multi-disciplinary applies principles from finance, statistics, human resource, and marketing in making decisions. Normative discipline is involved in planning for the future by utilizing the available resources available. With these characteristics, it gives an outlook on the nature of managerial economics at a broader aspect. According to Salvatore (2012), the principles depend on how people make decisions, how they interact, and how the economy works as one. In this case, the principles help governing market strategies and oversee people's choices that affect their lives. One of the responsibilities of the managerial economist is that they are general advisers where they participate in decision making. Besides, they help in making an accurate forecast that will help in planning for the next season (Bridge and Dodds 2018).
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From the analysis, it is clear that managerial economics is a vast topic that revolves around the business world. With the theories that help in explaining different concepts of this topic, it is now easier to understand how it works. Economics is a broad and comprehensive topic, and that is why a manager in this field should have the needed knowledge, seriousness, and competence to make effective decisions. Besides, the primary objective of the manager is to ensure that the decisions and advice given helps in generating profits. I believe that understanding the nature and scope of managerial economist significant helps in analyzing the economic drivers that lead to success. I have reached this conclusion because I firmly believe that for one to understand how economies work, one needs to know its structure and composition.
References
Brander, J. A., &Perloff, J. M. (2018). Managerial Economics and Strategy, Global Edition . Pearson Education, Incorporated.
Bridge, J., &Dodds, J. C. (2018). Managerial decision making . Routledge.
Salvatore, D. (2012). Managerial Economics: Principles and Worldwide Application:(adapted version). OUP Catalogue .
