What Are The Nature And Scope Of Managerial Economics?

Economics can be considered both as a science and as an art. Economics can be viewed as science because it explains the relationships between causes and effects. And it can be viewed as an art because it deals with needs and wants of human beings.

Economics can be classified into two branches or levels. These levels are Microeconomics and Macroeconomics. Microeconomics is the branch of economics that is concerned with the behaviour of individual units like the person, firm or household, whereas Macroeconomics deals with the economy as a whole. Microeconomics is concerned about the individual behaviour, forces of supply and demand at the level of concerned about inflation , unemployment, economic growth etc.

Managerial Economics is a course offered to the students of business studies or to the students of economics. Managerial Economics can be considered as an extension or application of microeconomic concepts. It includes demand and supply analysis, value of firm, industry structure, theory of the firm, bundling concepts, statistical tools for analyzing firm's performance, pricing issues in various industry environments etc. Managerial Economics puts great emphasis on quantitative aspects of economics. The course includes both quantitative and analytical analysis of the organization and represents the manager's prospective in taking managerial decisions for the betterment if the organization.

Managerial Economics is an important branch of economics which encompasses important applied concepts which aid the financial manager in decision making. The economics itself is directly related to the financial conditions of the firms in the industry. Managerial economics provide analysis tools which help managers to make their financing and investing decisions. Managerial economics encompasses concepts such as supply demand analysis, market equilibrium, present value, Internal rate of return, net present value, pricing strategies, cost structures, game theory, price bundling, firm's strategies in different industry structures, pricing strategies under monopoly, oligopoly, monopolistic competition, perfect competition etc. Managerial economics is offered as a course to the business students to equip with all the tools and techniques which will help them to take financial decisions in their future jobs.

Nature is consist the economics but scope is the Faucher in the economics there are tow type is microeconomics ,macroeconomics