Managerial economics deals with applying economic principles and techniques to solve business problems. It is an applied, pragmatic, and multidisciplinary field that examines demand analysis, production, costs, pricing, and profit management. Decision making is the process of selecting the best course of action from various alternatives to achieve organizational goals. It involves identifying problems, potential solutions, evaluating options, and choosing the optimal alternative.

1. MANAGERIAL ECONOMICS AND
DECISION MAKING
BY AKASH KUMAR
BBALLB

2. MANAGERIAL ECONOMICS
• Managerial economics deals with the
application and principles of technique and
concept of economics To solve managerial
problems of business and Industrial
enterprises.

3. NATURE OF MANAGERIAL
ECONOMICS
• Applied economic theory
• Pragmatic
• Multidisciplinary
• Applied Science

4. SCOPE OF MANAGERIAL
ECONOMICS
• Demand analysis and forecasting
• Production analysis
• Cost analysis
• Pricing decisions
• Profit management

5. DECISION MAKING
• It can be regarded as mental process resulting
in the selection of course of action among
several alternatives. Every process produces
final choice.
• According to o Donnell “ Decision making is
the actual selection from among alternatives
of a course of action ”.

6. NATURE OF DECISION MAKING
• It is the process of selecting the best from alternatives
• It is a important job for a manager therefore it should
be done in a rational manner
• It is based on managers knowledge, judgement,
creativity and innovation skills.
• It is aimed at achieving organizational goals.

7. DECISION MAKING PROCESS
• Identification of problems
• Identification of alternatives
• Evaluate the alternatives
• Choose best alternative.