Principles of Managerial Economics

Managerial economics is concerned with application of economic concepts and economic analysis to the problems of formulating rational managerial decision. It is sometimes referred to as business economics and is a branch of economics that applied microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis and correlation, lagrangian calculus (linear). If there is a unifying theme that runs through most of managerial economics it is the attempt to optimize business decisions given the firm’s objectives and given constraints imposed by scarcity, it is applied in the main areas such as assessment of investible funds, selecting business area, choice of product, determining optimum output, determining price of product, determining input-combination and technology and sale promotion. The main object of the book is to develop the subject matter in a lucid style.