Managerial economics covers 6 key scopes: demand analysis and forecasting, cost and production analysis, pricing decisions, policies and practices, profit management, and capital management. It uses economic concepts and techniques to help managers make optimal decisions to solve business problems and efficiently allocate scarce resources.

1. TOPIC COVERED
• SCOPE
• CHARACTERISTICS

2. Concept &
Techniques
of ME
Area of Study
(6 scope)
Optimum
Solution
to the
Problem
Applied
to

3. SCOPE OF MANAGERIAL ECONOMICS
Demand Analysis and Forecasting
Cost and Production Analysis
Pricing Decisions ,Policies and
Practices
Profit Management
Capital Management
Linear Programming and Theory of
Games

4. Demand Analysis and Forecasting
• Forecasting Sales
• Manipulating Demand (P,P,F)
Demand Determinants
Demand Distinctions
Demand Forecasting

5. • Efficient Allocation of Scarce Resources
• For decision cost plays a vital role
• Minimizing cost Maximizing production
• Take up cost concepts and Production Concepts
CC deals with Monetary terms PC deals with Physical terms

6. Pricing Decisions ,Policies and
Practices
• Core of Managerial Economics
• Incorrect Policies will leads to failure of the
business
• To work efficient in market
• Concepts of Pricing

7. Profit Management
• Profit is the life blood of an organisation
• Profit= Cost – Revenue
• Concepts of Profit
• Long Term investment

8. Capital Management
• Planning and control of expenditure
• Capital Concepts like Capital budgeting, Cost
of capital, Rate of Return , Selection of the
project

9. Linear Programming and Theory of
Games
Part of managerial
economics
Integration of ME and OR

10. Characteristics of ME