A managerial economist can play a
very important role by assisting the
management in using the increasingly
specialized skill and sophisticated techniques
which are required to solve the difficult
problems of successful decision making and
An analysis and forecast of external factors
constituting general business conditions are of
great significance since every business firm is
affected by them. Certain important relevant
questions in this connection are as follows;
What is the outlook for the national economy?
what are the most important economic trend?
What phase of the business cycle lies
What about population shift and resultant ups
and downs in regional purchasing power?
What are the demand prospects in new as
well as established markets?
are the market and customer
opportunities likely to expand or contract
What the prices of raw materials and finished
products are likely to be?
Is competition likely to increase or decrease?
What are the main components of the five
What is the outlook regarding government’s
economic policies and regulations
A managerial economist can also be
helpful to the management in making
decision relating to the internal operations of
a firm in respect of such problem as price,
rate of operations, investment, expansion or
contraction. Certain relevant questions are;
What will be a reasonable sales and profit
budget for the next year?
What will be the most appropriate production
schedules and inventory policies for the next
What changes in wage and price policies
should be made now?
How much cash will be available next month
and how should it be invested?
Managerial economist can play the
following specific functions are;
Industrial market research
Economic analysis of competing companies
Pricing problem of industry
Security or investment analysis
Advice on trade and public relations
Advice on foreign exchange
Economic analysis of agriculture
Analysis of underdeveloped economies
Managerial economist may also provide
management with economic information of
general interest. In fact, a good deal of
published material is already available and it
would be useful for a firm to have someone
who understands it.
5.Participating in public debates
Many well known business economist
participate in public debate. Their advice and
views are being sought by the government
and society alike. Their practical experience
in business and industry adds stature to their
Managerial economist is expected to
perform the following functions;
Macro forecasting for demand and supply
Production planning at micro and macro level
Economics of various production line
Economics feasibility of new production lines
or processes and projects
Preparation of periodical economic reports
bearing on various matters
briefs, speeches, articles and
papers for top management for various
Managerial Economist has a significant
role in managerial decision making. His
Maximization of Profit.
To alert management if there is an error in
Establish and maintain many contacts with
individuals and data sources.
To keep the management informed of
the economic trends.
He must be able to earn full status on the
A managerial economist has a very
important role to play by helping the
management in successful decision making
and forward planning. But to discharge his
role successfully, he must recognize his
responsibilities and obligations. Managerial
economists can contribute significantly to
the profitable growth of firms and effective
solution of their problems.