SlideShare a Scribd company logo
NATURE
MANAGERIAL
ECONOMICS
Managerial Economics :
Economics is a branch of economics involving
the application of economic methods in the organizational
decision-making process
Purposes of Managerial Economics :
1. To optimize decision making when the firm is faced with
problems or obstacles
2. To analyze the possible effects and implications of both
short and long-term planning decisions
The various characteristics of managerial economics :
1. Art and Science:
Management theory requires a lot of critical
and logical thinking and analytical skills to make decisions
or solve problems. Many economists also find it a source of
research, saying it includes applying different economic
concepts, techniques, and methods to solve business
problems.
2. Microeconomics :
Managers typically deal with the problems
relevant to a single entity rather than the economy as a
whole. It is therefore considered an integral part of
microeconomics.
3. Uses of Macro Economics:
Every firm operates in an external
environment—influenced by legal, political, global, social,
economic, technological, competitive, and
demographic factors. Macroeconomics deals with all
these threats.
4. Multidisciplinary:
Managerial economics uses many tools and
principles that belong to different disciplines, such as
accounting, finance, statistics, mathematics, production,
operational research, human resources, marketing, etc.
5. Prescriptive or Normative Discipline :
By introducing corrective steps managerial
economics aims at achieving the objective and solves
specific issues or problems.
6. Management Oriented :
This serves as an instrument in managers’
hands to deal effectively with business-related problems
and uncertainties. This also allows for setting priorities
and making successful decisions.
It also educates leaders and managers on how
to make crucial decisions in critical situations.
7.Pragmatic:
Managerial
economics is a practical approach—it applies
economic principles in decision-making and
problem-solving.
ECONOMICS MANAGERIAL PPT

More Related Content

Similar to ECONOMICS MANAGERIAL PPT

The fundamentals of managerial economics
The fundamentals of managerial economicsThe fundamentals of managerial economics
The fundamentals of managerial economics
Jasil Raj
 
The fundamentals of managerial economics
The fundamentals of managerial economicsThe fundamentals of managerial economics
The fundamentals of managerial economics
Jasil Raj
 
Business economics
Business economics Business economics
Business economics
DEEPANSHU31440
 
Basic business economics
Basic business economics Basic business economics
Basic business economics
Ansh818506
 
INTRODUCTION TO BUSINESS ECONOMICS.pptx
INTRODUCTION TO BUSINESS ECONOMICS.pptxINTRODUCTION TO BUSINESS ECONOMICS.pptx
INTRODUCTION TO BUSINESS ECONOMICS.pptx
AnshArora832878
 
ECONOMICS FOR MANAGERS.pptx
ECONOMICS FOR MANAGERS.pptxECONOMICS FOR MANAGERS.pptx
ECONOMICS FOR MANAGERS.pptx
Ravi Kumar
 
Mengerail eco book
Mengerail eco bookMengerail eco book
Mengerail eco book
Deepak Verma
 
unit 1.pptx
unit 1.pptxunit 1.pptx
unit 1.pptx
SwatiKunwar3
 
ME_unit1.pptx
ME_unit1.pptxME_unit1.pptx
ME_unit1.pptx
rame25
 
Introduction and meaning of managerial economics
Introduction and meaning of managerial economics   Introduction and meaning of managerial economics
Introduction and meaning of managerial economics
Harinadh Karimikonda
 
1521798107Q1.pdf
1521798107Q1.pdf1521798107Q1.pdf
1521798107Q1.pdf
BBADepartment8
 
Intro. to business economics
Intro. to business economicsIntro. to business economics
Intro. to business economics
Vikash Rathour
 
Questionanswers 100202064114-phpapp02
Questionanswers 100202064114-phpapp02Questionanswers 100202064114-phpapp02
Questionanswers 100202064114-phpapp02
Shwetank Khare
 
MEFA I UNIT MATERIAL
MEFA I UNIT MATERIALMEFA I UNIT MATERIAL
MEFA I UNIT MATERIAL
Dr. Durgaprasad Navulla
 
Introduction to managerial economics
Introduction to managerial economicsIntroduction to managerial economics
Introduction to managerial economics
Maddali Swetha
 
Eco unit 1 revised 23-1.pptx
Eco unit 1 revised 23-1.pptxEco unit 1 revised 23-1.pptx
Eco unit 1 revised 23-1.pptx
allblue732002
 
Business economics meaning, definitions etc
Business economics meaning, definitions etcBusiness economics meaning, definitions etc
Business economics meaning, definitions etc
Shompa Nandi
 
MP103
MP103MP103
MP103
pyansari
 
ERPM - Unit 01
ERPM - Unit 01ERPM - Unit 01
ERPM - Unit 01
erpm123
 
Unit 01
Unit 01Unit 01
Unit 01
pyansari
 

Similar to ECONOMICS MANAGERIAL PPT (20)

The fundamentals of managerial economics
The fundamentals of managerial economicsThe fundamentals of managerial economics
The fundamentals of managerial economics
 
The fundamentals of managerial economics
The fundamentals of managerial economicsThe fundamentals of managerial economics
The fundamentals of managerial economics
 
Business economics
Business economics Business economics
Business economics
 
Basic business economics
Basic business economics Basic business economics
Basic business economics
 
INTRODUCTION TO BUSINESS ECONOMICS.pptx
INTRODUCTION TO BUSINESS ECONOMICS.pptxINTRODUCTION TO BUSINESS ECONOMICS.pptx
INTRODUCTION TO BUSINESS ECONOMICS.pptx
 
ECONOMICS FOR MANAGERS.pptx
ECONOMICS FOR MANAGERS.pptxECONOMICS FOR MANAGERS.pptx
ECONOMICS FOR MANAGERS.pptx
 
Mengerail eco book
Mengerail eco bookMengerail eco book
Mengerail eco book
 
unit 1.pptx
unit 1.pptxunit 1.pptx
unit 1.pptx
 
ME_unit1.pptx
ME_unit1.pptxME_unit1.pptx
ME_unit1.pptx
 
Introduction and meaning of managerial economics
Introduction and meaning of managerial economics   Introduction and meaning of managerial economics
Introduction and meaning of managerial economics
 
1521798107Q1.pdf
1521798107Q1.pdf1521798107Q1.pdf
1521798107Q1.pdf
 
Intro. to business economics
Intro. to business economicsIntro. to business economics
Intro. to business economics
 
Questionanswers 100202064114-phpapp02
Questionanswers 100202064114-phpapp02Questionanswers 100202064114-phpapp02
Questionanswers 100202064114-phpapp02
 
MEFA I UNIT MATERIAL
MEFA I UNIT MATERIALMEFA I UNIT MATERIAL
MEFA I UNIT MATERIAL
 
Introduction to managerial economics
Introduction to managerial economicsIntroduction to managerial economics
Introduction to managerial economics
 
Eco unit 1 revised 23-1.pptx
Eco unit 1 revised 23-1.pptxEco unit 1 revised 23-1.pptx
Eco unit 1 revised 23-1.pptx
 
Business economics meaning, definitions etc
Business economics meaning, definitions etcBusiness economics meaning, definitions etc
Business economics meaning, definitions etc
 
MP103
MP103MP103
MP103
 
ERPM - Unit 01
ERPM - Unit 01ERPM - Unit 01
ERPM - Unit 01
 
Unit 01
Unit 01Unit 01
Unit 01
 

More from ManikantaARIKAPUDI

MANIKANTA mgmt concepts i1.pdf
MANIKANTA mgmt concepts i1.pdfMANIKANTA mgmt concepts i1.pdf
MANIKANTA mgmt concepts i1.pdf
ManikantaARIKAPUDI
 
management acc.pptx
management acc.pptxmanagement acc.pptx
management acc.pptx
ManikantaARIKAPUDI
 
taylor.pptx
taylor.pptxtaylor.pptx
taylor.pptx
ManikantaARIKAPUDI
 
reliance.pptx
reliance.pptxreliance.pptx
reliance.pptx
ManikantaARIKAPUDI
 
motorola.pptx
motorola.pptxmotorola.pptx
motorola.pptx
ManikantaARIKAPUDI
 
parts of speech.pptx
parts of speech.pptxparts of speech.pptx
parts of speech.pptx
ManikantaARIKAPUDI
 
cross elasticity.pptx
cross elasticity.pptxcross elasticity.pptx
cross elasticity.pptx
ManikantaARIKAPUDI
 
chiru microeconomics.pptx
chiru microeconomics.pptxchiru microeconomics.pptx
chiru microeconomics.pptx
ManikantaARIKAPUDI
 
food chain.pptx
food chain.pptxfood chain.pptx
food chain.pptx
ManikantaARIKAPUDI
 
123.pptx
123.pptx123.pptx
royal enfield.pdf
royal enfield.pdfroyal enfield.pdf
royal enfield.pdf
ManikantaARIKAPUDI
 
123.pptx
123.pptx123.pptx
air india.pptx
air india.pptxair india.pptx
air india.pptx
ManikantaARIKAPUDI
 
RESEARCH PAPER ON.pdf
RESEARCH PAPER ON.pdfRESEARCH PAPER ON.pdf
RESEARCH PAPER ON.pdf
ManikantaARIKAPUDI
 
BPL.pdf
BPL.pdfBPL.pdf
air india case study-1.pptx
air india case study-1.pptxair india case study-1.pptx
air india case study-1.pptx
ManikantaARIKAPUDI
 
air india case study-3 (1).pptx
air india case study-3 (1).pptxair india case study-3 (1).pptx
air india case study-3 (1).pptx
ManikantaARIKAPUDI
 
baskin vamsi.pptx
baskin vamsi.pptxbaskin vamsi.pptx
baskin vamsi.pptx
ManikantaARIKAPUDI
 
Business analytics (1).pptx
Business analytics (1).pptxBusiness analytics (1).pptx
Business analytics (1).pptx
ManikantaARIKAPUDI
 
INSIDER TRADING research paper
INSIDER TRADING research paperINSIDER TRADING research paper
INSIDER TRADING research paper
ManikantaARIKAPUDI
 

More from ManikantaARIKAPUDI (20)

MANIKANTA mgmt concepts i1.pdf
MANIKANTA mgmt concepts i1.pdfMANIKANTA mgmt concepts i1.pdf
MANIKANTA mgmt concepts i1.pdf
 
management acc.pptx
management acc.pptxmanagement acc.pptx
management acc.pptx
 
taylor.pptx
taylor.pptxtaylor.pptx
taylor.pptx
 
reliance.pptx
reliance.pptxreliance.pptx
reliance.pptx
 
motorola.pptx
motorola.pptxmotorola.pptx
motorola.pptx
 
parts of speech.pptx
parts of speech.pptxparts of speech.pptx
parts of speech.pptx
 
cross elasticity.pptx
cross elasticity.pptxcross elasticity.pptx
cross elasticity.pptx
 
chiru microeconomics.pptx
chiru microeconomics.pptxchiru microeconomics.pptx
chiru microeconomics.pptx
 
food chain.pptx
food chain.pptxfood chain.pptx
food chain.pptx
 
123.pptx
123.pptx123.pptx
123.pptx
 
royal enfield.pdf
royal enfield.pdfroyal enfield.pdf
royal enfield.pdf
 
123.pptx
123.pptx123.pptx
123.pptx
 
air india.pptx
air india.pptxair india.pptx
air india.pptx
 
RESEARCH PAPER ON.pdf
RESEARCH PAPER ON.pdfRESEARCH PAPER ON.pdf
RESEARCH PAPER ON.pdf
 
BPL.pdf
BPL.pdfBPL.pdf
BPL.pdf
 
air india case study-1.pptx
air india case study-1.pptxair india case study-1.pptx
air india case study-1.pptx
 
air india case study-3 (1).pptx
air india case study-3 (1).pptxair india case study-3 (1).pptx
air india case study-3 (1).pptx
 
baskin vamsi.pptx
baskin vamsi.pptxbaskin vamsi.pptx
baskin vamsi.pptx
 
Business analytics (1).pptx
Business analytics (1).pptxBusiness analytics (1).pptx
Business analytics (1).pptx
 
INSIDER TRADING research paper
INSIDER TRADING research paperINSIDER TRADING research paper
INSIDER TRADING research paper
 

Recently uploaded

Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
Using Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trendsUsing Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trends
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
ResolutionFoundation
 
An Overview of the Prosocial dHEDGE Vault works
An Overview of the Prosocial dHEDGE Vault worksAn Overview of the Prosocial dHEDGE Vault works
An Overview of the Prosocial dHEDGE Vault works
Colin R. Turner
 
Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
The Impact of GST Payments on Loan Approvals
The Impact of GST Payments on Loan ApprovalsThe Impact of GST Payments on Loan Approvals
The Impact of GST Payments on Loan Approvals
Vighnesh Shashtri
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
taqyea
 
2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf
Neal Brewster
 
International Sustainability Standards Board
International Sustainability Standards BoardInternational Sustainability Standards Board
International Sustainability Standards Board
Kumar Ramaiah
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
bresciafarid233
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
ynfqplhm
 
University of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma TranscriptUniversity of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcript
tscdzuip
 
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfOptimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
shruti1menon2
 
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
k4ncd0z
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
beulahfernandes8
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
ResolutionFoundation
 
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdfTumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
Henry Tapper
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
FinTech Belgium
 
How Does CRISIL Evaluate Lenders in India for Credit Ratings
How Does CRISIL Evaluate Lenders in India for Credit RatingsHow Does CRISIL Evaluate Lenders in India for Credit Ratings
How Does CRISIL Evaluate Lenders in India for Credit Ratings
Shaheen Kumar
 
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptxUnlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
cosmo-soil
 

Recently uploaded (20)

Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...Bridging the gap: Online job postings, survey data and the assessment of job ...
Bridging the gap: Online job postings, survey data and the assessment of job ...
 
Using Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trendsUsing Online job postings and survey data to understand labour market trends
Using Online job postings and survey data to understand labour market trends
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
 
An Overview of the Prosocial dHEDGE Vault works
An Overview of the Prosocial dHEDGE Vault worksAn Overview of the Prosocial dHEDGE Vault works
An Overview of the Prosocial dHEDGE Vault works
 
Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...
 
The Impact of GST Payments on Loan Approvals
The Impact of GST Payments on Loan ApprovalsThe Impact of GST Payments on Loan Approvals
The Impact of GST Payments on Loan Approvals
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
 
2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf2. Elemental Economics - Mineral demand.pdf
2. Elemental Economics - Mineral demand.pdf
 
International Sustainability Standards Board
International Sustainability Standards BoardInternational Sustainability Standards Board
International Sustainability Standards Board
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
 
University of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma TranscriptUniversity of North Carolina at Charlotte degree offer diploma Transcript
University of North Carolina at Charlotte degree offer diploma Transcript
 
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfOptimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdf
 
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
一比一原版(RMIT毕业证)皇家墨尔本理工大学毕业证如何办理
 
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla FincorpWho Is Abhay Bhutada, MD of Poonawalla Fincorp
Who Is Abhay Bhutada, MD of Poonawalla Fincorp
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
 
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdfTumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
Tumelo-deep-dive-into-pass-through-voting-Feb23 (1).pdf
 
Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!Money20/20 and EU Networking Event of 20/24!
Money20/20 and EU Networking Event of 20/24!
 
How Does CRISIL Evaluate Lenders in India for Credit Ratings
How Does CRISIL Evaluate Lenders in India for Credit RatingsHow Does CRISIL Evaluate Lenders in India for Credit Ratings
How Does CRISIL Evaluate Lenders in India for Credit Ratings
 
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptxUnlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
Unlock-the-Power-of-UAN-Your-Key-to-Secure-Retirement.pptx
 

ECONOMICS MANAGERIAL PPT

  • 2. Managerial Economics : Economics is a branch of economics involving the application of economic methods in the organizational decision-making process Purposes of Managerial Economics : 1. To optimize decision making when the firm is faced with problems or obstacles 2. To analyze the possible effects and implications of both short and long-term planning decisions
  • 3.
  • 4. The various characteristics of managerial economics : 1. Art and Science: Management theory requires a lot of critical and logical thinking and analytical skills to make decisions or solve problems. Many economists also find it a source of research, saying it includes applying different economic concepts, techniques, and methods to solve business problems. 2. Microeconomics : Managers typically deal with the problems relevant to a single entity rather than the economy as a whole. It is therefore considered an integral part of microeconomics.
  • 5. 3. Uses of Macro Economics: Every firm operates in an external environment—influenced by legal, political, global, social, economic, technological, competitive, and demographic factors. Macroeconomics deals with all these threats. 4. Multidisciplinary: Managerial economics uses many tools and principles that belong to different disciplines, such as accounting, finance, statistics, mathematics, production, operational research, human resources, marketing, etc.
  • 6. 5. Prescriptive or Normative Discipline : By introducing corrective steps managerial economics aims at achieving the objective and solves specific issues or problems. 6. Management Oriented : This serves as an instrument in managers’ hands to deal effectively with business-related problems and uncertainties. This also allows for setting priorities and making successful decisions. It also educates leaders and managers on how to make crucial decisions in critical situations.
  • 7. 7.Pragmatic: Managerial economics is a practical approach—it applies economic principles in decision-making and problem-solving.