--%>
Assignment Help - homework help

Explain characteristics of managerial or business economics

Explain the chief characteristics of managerial or business economics.

E

Expert

Verified

The significant features of managerial economics are as follows:

1) Managerial economics is type of Micro economic in character. Since it studies the problems of a business firm not the whole economy.

2) Managerial economics mainly uses the body of economic principles and concepts that is termed as “Economics of the firm” or “Theory of the Firm”.

3) It is pragmatic. This is purely practical oriented. Therefore Managerial economics considers the specially environment of a firm or business for decision making.

4) Managerial economics is Normative quite than positive economics (descriptive economics). It is prescriptive to solve exact business problem by giving importance to firms objectives and aim.

5)  Macro economics is also helpful to managerial economics since this gives intelligent understanding of the environment in that the business is operating.

6)  This is management oriented.

   Related Questions in Managerial Economics

  • Q : Value of the Marginal Product and

    The value to society of the additional output produced by an additional worker is the: (w) marginal resource cost of labor. (x) value of the marginal product of labor. (y) value of the average product of labor. (z) marginal physical product of labor.<

    		•
  • Q : Very high fixed costs in contestable

    A market is improbable to be contestable when entry needs new firms to incur very high: (w) variable costs. (x) fixed costs. (y) principal-agent problems. (z) marginal costs. I need a good answer on the topic of Economics <

    		•
  • Q : What is Increasing Returns to scale

    What is Increasing Returns to scale?

    		•
  • Q : Define the some criticized highlight

    Define the some criticized highlight points of Adam Smith?

    		•
  • Q : Explain why firms may close in Short Run

    Val Alvarado, an accountant, quit his $80,000 year job and bought an existing laundry through its earlier owner, he was Ricky White. The lease has five years stayed and needs a monthly payment of $4,000. Val's explicit cost amounts to $3,000 per month more than his

  • Q : Part of the payment in economic rent

    Economic rent shows part of the payment for the utilization of: (w) landowners’ labor and capital to keep their land. (x) landowners’ buildings and equipment. (y) resources for that supplies are less than perfectly elastic. (z) any piece o

    		•
  • Q : How most goods and resources are

    In countries employing decentralized markets for nearly all decision making: (1) Private individuals select how most resources and goods are allocated. (2) Nonhuman resources should be individually owned. (3) Elaborate economic plans are planned and enforced by law. (

    		•
  • Q : Income effect and substitution effect

    When comparing these labor supplies, which are clear by the income effect of a modification in wage rates is: (w) negative for Morgan and positive for Chandra. (x) less powerful than substitution effect for both of such workers. (y) positive for Morgan and negative fo

    		•
  • Q : What are differences between

    What are the differences between differential cost and explicit cost?

    		•
  • Q : Explain about leading indices Explain

    Explain about leading indices.

    		•