What is Economics,Purpose of economics

ECONOMICS

Economics is the study of mankind in the ordinary business of life. (Zoel Dean)

PURPOSE OF ECONOMICS:

The purpose of Managerial Economics is to show how economic analysis can be used in formulating business policy.

IMPORTANCE AND NECESSITIES OF MANAGERIAL ECONOMICS

1. Analysis of Micro and Macro Economics

        2. Adjustment of hypothesis with actual situation

        3. Measurement of elasticity of diamond

       4. Makinng of business policy

        5. Forecasting of Economic condition

       6. Proper explanation and analyzing of external factors

NATURE AND FUTURE OF MANAGERIAL ECONOMICS

1. Micro economics

2. Firm economics

3. Bragnatic economics

4. Normatic economics

5. Macro economics

SCOPE OF MANAGERIAL ECONOMICS

1. Diamond analysis and forecasting

2. Cost analysis

3. Production analysis

4. Prizeing decision, policies and practices

5. Profit management

6. Capital management

FUNCTIONS OF MANAGERIAL ECONOMICS

1. Internal functions or factors

2. External functions or factors

            a. Environment studies

            b. Helping business function

            c. Supplying intelligence service

            d. Specific functions

            e. Participating in public debates