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Managerial economics is a branch of economics involving the application of economic methods in the organizational decision-making process.There is no specific source or citation for this sentence. As a common definition, similar expressions often appear in textbooks, papers, and research reports in economics and management

Economics is the study of the production, distribution, and consumption of goods and services. Managerial economics involves the use of economic theories and principles to make decisions regarding the allocation of scarce resources. There is no specific source or citation for this sentence. As a common definition, similar expressions often appear in textbooks, papers, and research reports in economics and management

It guides managers in making decisions relating to the company's customers, competitors, suppliers, and internal operations. There is no specific source or citation for this sentence. As a common definition, similar expressions often appear in textbooks, papers, and research reports in economics and management

Managers use economic frameworks to optimize profits, resource allocation, and the firm's overall output, whilst improving efficiency and minimizing unproductive activities.[4] These frameworks assist organizations to make rational, progressive decisions, by analyzing practical problems at both micro and macroeconomic levels. Market failures and misallocation[J]. Ajay Shenoy.Journal of Development Economics,2017

Managerial decisions involve forecasting (making decisions about the future), which involve levels of risk and uncertainty. However, the assistance of managerial economic techniques aids in informing managers of these decisions. J.Edward Russo & Paul J.H.Schoemaker (2002).Winning Decisions, New York; Doubleday.

Managerial economists define managerial economics in several ways:

1. It is the application of economic theory and methodology in business management practice.

2. Focus on business efficiency.

3. Defined as "combining economic theory with business practice to facilitate management's decision-making and forward-looking planning."

4. Includes the use of an economic mindset to analyze business situations.

5. Described as "a fundamental discipline aimed at understanding and analyzing business decision problems".

6. Is the study of the allocation of available resources by enterprises of other management units in the activities of that unit.

7. Deal almost exclusively with those business situations that can be quantified and handled, or at least quantitatively approximated, in a model.

The two main purposes of managerial economics are:

To optimize decision-making when the firm is faced with problems or obstacles, with the consideration and application of macro and microeconomics theories and principles. Horowitz, Diane Lewis, Furie, Richard - 《Current Rheumatology Reports》-2012

To analyze the possible effects and implications of both short and long-term planning decisions on the revenue and profitability of the business.

The core principles that managerial economists use to achieve the above purposes are:

monitoring operations management and performance,

target or goal setting

talent management and development.

In order to optimize economic decisions, the use of operations research, mathematical programming, strategic decision-making, game theory, and other computational methods are often involved. There is no specific reference source, which is a commonly used research method in management economics.

The methods listed above are typically used for making quantitate decisions by data analysis techniques.

The theory of Managerial Economics includes a focus on; incentives, business organization, biases, advertising, innovation, uncertainty, pricing, analytics, and competition. Liu J. Theoretical Analysis on Relation between Innovation and Organizational Structure[C]// Proceedings of the 2012 3rd International Conference on E-Business and E-Government - Volume 05. IEEE Computer Society, 2012.

In other words, managerial economics is a combination of economics and managerial theory. It helps the manager in decision-making and acts as a link between practice and theory. There is no specific source or citation for this sentence. As a common definition, similar expressions often appear in textbooks, papers, and research reports in economics and management. Furthermore, managerial economics provides the tools and techniques that allow managers to make optimal decisions for any scenario.

Some examples of the types of problems that the tools provided by managerial economics can answer are:

The price and quantity of a good or service that a business should produce.

Whether to invest in training current staff or to look into the market.

When to purchase or retire fleet equipment.

Decisions regarding understanding the competition between two firms are based on the motive of profit maximization.