Contents
Managerial Economics: Applications, Strategy and Tactics
Rationale
Managerial Economics (also called business economics), is a branch of economics that applies microeconomic analysis to specific business decisions. As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression 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.
Almost any business decision can be analysed with managerial economics techniques, but it is most commonly applied to:
Risk analysis - various uncertainty models, decision rules, and risk quantification techniques are used to assess the riskiness of a decision.
Production analysis - microeconomic techniques are used to analyse production efficiency, optimum factor allocation, costs, economies of scale and to estimate the firm's cost function.
Pricing analysis - microeconomic techniques are used to analyse various pricing decisions including transfer pricing, joint product pricing, price discrimination, price elasticity estimations, and choosing the optimum pricing method.
Capital budgeting - Investment theory is used to examine a firm's capital purchasing decisions.
At universities, the subject is taught primarily to advanced undergrads. It is approached as an integration subject. That is, it integrates many concepts from a wide variety of prerequisite courses. In the UK it is possible to read for a degree in Business Economics which is often comprised of managerial economics, financial economics and industrial economics.
Related Topics
- list of economics topics
- list of finance topics
- list of international trade topics
- list of production topics
- list of accounting topics
- list of management topics
- list of human resource management topics
- list of marketing topics
- list of information technology management topics
- list of business law topics
- list of business ethics, political economy, and philosophy of business topics
- list of business theorists
- list of economists
- list of corporate leaders
External links
Weigelt, Keith (2006) Managerial Economics
Png, Ivan (2002) Managerial Economics, Malden, MA: Blackwell.
Baumol, W. J. (1961) What can economic theory contribute to managerial economics?, American Economic Review, vol. 51, no. 2, May 1961, pp 142-46.
Elmer G. Wiens: Managerial Incentives - The Public Firm with Managerial Incentives.
Today's Videos
- Connect with us on http://www.youtube.com/finntrack
- Google's Playlists
Teaching and Learning Resources
Introduction and Goals of the Firm. Fundamental Economic Concepts
Tutorials
Readings
Optimization Techniques. Demand Analysis
Tutorials
Readings
Estimation of Demand. Business and Economic Forecasting
Tutorials
Readings
Exchange Rates and International Trade: Managing Exports. Production Economics
Tutorials
Readings
Cost Analysis. Applications of Cost Theory
Tutorials
Readings
Linear Programming Applications. Prices, Output, and Strategy: Pure and Monopolistic Competition
Tutorials
Readings
Competitive Markets Under Asymmetric Information. Price and Output Determination: Monopoly
Tutorials
Readings
Oligopoly. Game-Theoretic Rivalry: Best Practice Tactics
Tutorials
Readings
Pricing Techniques and Analysis. Government Regulation
Tutorials
Readings
Long - Term Investment Analysis. Risk Analysis
Tutorials
Readings
- Web Chapter A. Optimization Techniques
- Web Chapter B. Linear
Programming Applications
Recommended Text
 |
Managerial
Economics: Applications, Strategy, and Tactics 9th Edition by The
ForeProfit software, developed by Joseph Kreitzer of the University
of St. Thomas, is a DOS-based, free standing, user-friendly
software that provides on-screen help and user diagnostics.
It can be used to solve problems in regression analysis, forecasting,
linear programming, capital expenditure, and cost-benefit
analysis. Internet Resources and Updates Check the availability and buy your books from our Bookshop. |
Prepared
by Dr. Thomas Palm, Emeritus, Portland State University
New to this edition is an interactive software program that
accompanies the text. This powerful software package is a student's
interactive introduction to a new, revolutionary approach to
learning microeconomics. The power of the Excel spreadsheet,
on either the PC or the Macintosh platform, is used to present
economic models in a live and interactive context. This software
lifts static, printed textbook models, e.g., equations and the
associated graphs, to dynamic - changeable and automatically
recalculated - spreadsheets.
Resources
