Managerial economics deals with applying economic concepts and theories to solve business problems. It combines economics and management. Managerial economics helps managers minimize risk and uncertainty, analyze the effects of government policies, and aid in profit planning and control, demand forecasting, and cost control. It also measures business efficiency. Managerial economics provides tools to analyze risks, uncertainties, and the impacts of government policy changes on business. It further helps with profit planning, production demand forecasting, and cost control to improve business performance.