Economic Concepts

Better Essays
Top of Form Powered by JRank
Bottom of Form
Reference for Business

Encyclopedia of Business, 2nd ed.
Reference for Business » Encyclopedia of Business, 2nd ed. » Man-Mix » Managerial Economics

Ads by Google
1 year diploma courses - Info on Courses, Scholarships & Admissions from IDP Experts.
SWOT Analysis Tool - Get a free 30 day trial of Mindjet the leading Mindmapping Tool! online gcp courses - Online, Classroom & Blended Courses Certification Programs & More!
CAT Scholarships-T.I.M.E. - Must for all cat and mba aspirants Register Now-Upto 100% scholarships -
…show more content…
One can also consider why there are now so many overnight mail carriers such as United Parcel Service and Airborne Express. The second example pertains to the exit from an industry, specifically, the airline industry in the United States. Pan Am, a pioneer in public air transportation, is no longer in operation, while some airlines such as TWA (Trans World Airlines) are on the verge of exiting the airlines industry. Why, then, have many airlines that operate on international routes fallen on hard times, while small regional airlines seem to be doing just fine? Managerial economics provides answers to these questions.
In order to answer pertinent questions, managerial economics applies economic theories, tools, and techniques to administrative and business decision-making. The first step in the decision-making process is to collect relevant economic data carefully and to organize the economic information contained in data collected in such a way as to establish a clear basis for managerial decisions. The goals of the particular business organization must then be clearly spelled out. Based on these stated goals, suitable managerial objectives are formulated. The issue of central concern in the decision-making process is that the desired objectives be reached in the best possible manner. The term "best" in the decision-making context primarily refers to achieving the goals in the most efficient
Get Access