Meaning and Scope of Managerial Economics

This paper looks at the main issues faced by decision makers, analyses them, presents alternatives and makes recommendations based on the analysis.

Businesses can prepare their own analysis for each category by obtaining numerous pieces of information, which relate to their current state as well as knowledge about how their company’s decisions and operations impact their society and environment.

1. Read `Spotlight on Management` on pages 133-149 and the practice lesson `The Real World` on page 152. Please discuss the following questions in detail.  Your response to each question should consist of:  a minimum word count of 250 words and at least three (3) scholarly sources (1 resource can be the textbook):

Economics is the social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems. All economists agree on one thing, the economy is large and it is unpredictable. However, throughout the years economists have developed some simple but widely applicable principles that are useful when trying to understand decisions that are made by everyday people to the workings of highly complex markets. There are Seven Core Principles of Economics. These principles are: Scarcity Principle, Cost-Benefit Principle, Principle of Unequal Costs, Principle of Comparative Advantage, Principle of Increasing Opportunity Cost, Equilibrium Principle, and

Kessler, E. H. (Ed.) (2013). Encyclopedia of management theory (Vols. 1-2). Thousand Oaks, CA: SAGE Publications Ltd. doi: 10.4135/9781452276090

Business managers are microeconomic market participants. Microeconomics helps businesses to make important decisions by providing analytic tools about firms and market structures to improve a company’s business practices.

Strategic decisions require careful and purposeful skills of analysis, creativity, and informed problem solving. The best practice for decision making is identification, inventory, and intervention (Davenport, 2009). Identify the decision to be made for the organization, identify the factors that influence that decision (who, what, etc), and apply purposeful action to implement that decision. Decision-making tools can assist with the decision making process. Tools such as, Case-Based Decision Analysis, Information Aggregation Tools, cost-benefit analysis, gap analysis, or SWOT analysis. can help to evaluate the current state of the company and how to proceed with a decision for the future. Case-Based Decision Analysis tool focuses on data collection of past experiences, situations, and solutions. By tracking past results it can help to make more informed decisions in the future. Information Aggregation Tools uses external data that relates to a specific issue at hand, evaluates data that has served as solutions to such issues, selects supported alternatives, and, lastly, rates the compatibility of such proposed solutions to the issue at hand. A cost-benefit analysis is a type of strategic decision-making tool that assesses the cost and potential benefit associated with different courses of action and choosing

Kessler, E. H. (Ed.) (2013). Encyclopedia of management theory (Vols. 1-2). Thousand Oaks, CA: SAGE Publications Ltd. doi: 10.4135/9781452276090

In business it is essential for owners to consider important factors when mapping out their business objectives. Economics used as a tool to solve coordination problems. They include what and how much product to produce, how to produce their product, and for whom they are producing. In order to effectively answer these questions, economics is used. Colander (2006) describes economics as “the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society” (p. 4). The foundation of economics is based on several factors that assist in understanding an economy.

Economic principles are guidelines to establishing, successful and interesting business opportunities. Within the pages of a solid and practical business plan are reflections of sound economic understanding and clearly defined goals. The purpose of this essay is to discuss the economic analysis of a particular business plan based on the company SendOutCards.

Locate four articles or books on your philosophy written by different management theorists and published in the past 5 years in academic literature. At least two must be from peer-reviewed journals. The articles or books may be theory articles, research articles, or a combination.

Thinking critically and making decisions are important parts of today’s business environment. It is important to understand how the decision making process works and the steps involved. The nine steps of the decision making process are: identifying the problem, defining criteria, setting goals and objectives, evaluating the effect of the problem, identifying the causes of the problem, framing alternatives, evaluating impacts of the alternatives, making the decision, implementing the decision, and measuring the impacts. (Decision, 2007.) By using various methods and tools to assist in making important business decisions an individual can ensure the decisions they make will be as successful as possible. In this paper it

There are many factors that will affect the decisions of the managers of any organization. Even The Coca-Cola Company, the worlds? largest beverage company has to consider about their macro environment as well as

The difficulties that were accompanied with this approach led to deviation from the rational model. Complexity of modern organizations and the limited cognitive ability of decision makers were most influencing factors in the deviation . The decision makers were unable to operate under perfect rationality conditions. The information about a decision was mostly unavailable or unclear, and open to different interpretations. Also, the criteria of evaluating alternative solutions were not agreed upon. It also required very long time and a lot of energy of the decision makers to pursue a maximizing outcome. These constrains led to a conclusion that the absolute rational model is unreachable.

The field of economics is split into two distinct branches. Microeconomics covers the functioning of individual markets for goods and services. It addresses how these markets are structured and how the pricing of goods and services and production costs is determined.