Answer to Question #189475 in Economics for Maxxi

Question

Why is it necessary to discuss the different discipline that are related to managerial economics?

Answer 1

If we consider the name of the discipline "Managerial economics" or "Economics for a manager", then the main attention is paid, first of all, to the component "economics". Economics is the science of making decisions in the context of limited resources used. Resources are everything that is used to achieve a set goal. With limited resources, the choice of the right decision becomes very important, since the adoption of one of the possible decisions leads to the rejection of all other options for action. For example, a computer company that has allocated more funds to advertise its products, of course, cannot use that money to fund project research and development.

Taking into account the above, we can conclude that "Management Economics" is a training course in which methods and tools are studied that allow a manager to make effective management decisions in conditions of limited resources used.