Business economics analyzes business situations using economic theories and concepts to facilitate managerial decision-making. It is microeconomic in nature as it focuses on individual business firms. Business economics uses microeconomic concepts like demand forecasting, cost-benefit analysis, and theories of the firm to examine pricing, production, costs, and profit maximization. It also employs tools from mathematics, statistics, and other disciplines to aid in evidence-based pragmatic decision-making. The goal is to provide practical guidance for establishing objectives and evaluating alternative solutions.