Managerial economics is a branch of economics involving the application of economic methods in the managerial decision-making process. Economics is the study of the production, distribution and consumption of goods and services.

1. CONTENTS:
1. Introduction to Managerial
Economics
2. Meaning
3. Definition
4. Nature of Managerial Economics

2. INTRODUCTION
BUSINESS ECONOMICS, ALSO CALLED MANAGERIAL
ECONOMICS,
 Not an ready made solution
 Due to changing business world
 After the second world war
 Particularly after 1950
 With the expansion of business all over
the world.
 Business managers faced many problems
(point 2)
 There is a gap between economic theory
and correct decision making.
 So that separate branch ME came into
existence

3. CONTINUE

4. Economic
Theory
Business
Management
ME

5. IT IS REALISTIC AND PRAGMATIC IN NATURE
Economic
Factors
H
T
E
B
Human, Behavioural, Technology, Environment

7. PRIMARY FUNCTION OF MANAGEMENT
EXECUTIVE
DM FP

8. Decision –making means the
process of selecting one action
from among number of actions or
alternative prevailing
Forward Planning means
establishing plans for the future

9. NATURE OF ME
• Special Branch of Economics
• Micro economics in character
• Related to macro economics
• Pragmatic
• Elective in nature
• Normative

10. SPECIAL BRANCH OF ECONOMICS

11. MICRO ECONOMICS IN CHARACTER

12. RELATED TO MACRO ECONOMICS

13. PRAGMATIC

14. NORMATIVE

15. Elective in nature
Accounting, Production, Marketing, Finance, Sales
A,P,M,F,S