Managerial economics is the application of economic theory and methodology to managerial decision making. It bridges traditional economics and business practices by using tools and techniques to analyze problems related to demand, production, costs, prices, investments, and profits. The goal is to help managers make efficient decisions. Managerial economics gained popularity after Joel Dean published the book "Managerial Economics" in 1951, applying economic theories to real-world business problems. It examines how managers can coordinate unlimited wants with limited resources to maximize profits within the constraints of scarcity.

1. Introduction to
MANAGERIAL ECONOMICS
By: Dr. T.Chandrasekhar Yadav
Assistant Professor
DEPARTMENT OF MANAGEMENT
RGUKT-Nuzvid

2. Introduction & Definitions
Meaning of Economics :
• The word Economics is derived from two Greek words
“OIKOS and NEMO” that means “Household
Management”.
• “Economics is a study of human activity both at
individual level and national level.”
• We find that people aimed at earning money through in
different activities like agriculture, trade, business,
profession and industry and uses of this money for
satisfaction of their wants such as food, clothing,
shelter and other needs. These activities are called
economic activities.

3. Definitions:
According to Adam Smith :
Economics as “the Science of Wealth” with
the publication of famous book “An Enquiry into the
Nature and Causes of Wealth of Nations” in 1776, thus
economics saw the light of the day.
Features:
(a) The main objectivity of human activity is the
acquisition of wealth.
(b) Wealth refers to goods produced
(c) Man is treated as selfish (rational) whose objective
is to get more and more wealth.

4. According to Alfred Marshall :
Economics is a study of man
actions in the ordinary business life. It
enquires how he gets his income and
how he uses it.
The following picture gives full clarity
about economics objective.

5. Economics is the study of how humans make decisions in the face of
scarcity. Scarcity refers to a basic economic problem; it is the gap
between limited resources and the limitless wants. Thus, the
economics helps us to coordinates unlimited wants with limited
resources.

6. Managerial Economics - Meaning
Managerial Economics is a stream of management studies. It bridges the gap
between traditional economics and real life business practices by applying
various theories, tools and techniques, and to find the optimum solutions for
various business problems such as demand, production, cost, price, investment
and profit etc and to make efficient managerial decisions.
Managerial economics as a subject gained popularity in USA after the publication
of book “Managerial Economics” by Joel Dean in 1951.

7. Nature of Managerial Economics

8. Scope of Managerial Economics