Managerial Economics Case Study

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Introduction
Managerial decisions are an important component in achieving the objectives of the organization. The success or failure of a business depend upon the decisions made by managers. Today’s increasing complexity in the world of business brought forth greater challenges for both the firm and its managers. The rapid rate of technological and digital advance as well as greater focus product innovation and processes that influence marketing and sales techniques have contributed to the increasing complexity in the business environment.
This complex environment together with a global market where input and product prices are continuing to fluctuate and remain volatile. Such changing environments creates a pressing need for sound economic …show more content…

McNair and Meriam: “Managerial economics consists of the use of economic modes of thought to analyze business situations”. Spencer and Siegelman: Managerial economics is “the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning by management”. Haynes, Mote and Paul: “Managerial economics refers to those aspects of economics and its tools of analysis most relevant to the firm’s decision-making process”.
Managerial economics deals with the use of economics’ principles, techniques and concepts to managerial problems of business and industrial enterprises. Managerial economics helps firms in formulating logical tools and techniques for managerial policy and decisions making. Furthermore, it helps in narrowing the gap that exists between economics in theory and in practice and guides managers in making decisions that are related to customers, competitors, suppliers and internal functioning of a firm. It also encourages the use of statistical and analytical tools in solving practical business problems by

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