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The main responsibility of management department in a business firm is to take the right decision and make plans for the future so that they are already prepared to deal with any problem and stay ahead of their competitors. Taking the appropriate decision is actually a procedure of picking the best out of other options available to the firm and on the other hand forward planning can be defined as proposing plans for the future. Current business state is improving so quickly and turning into competitive and complicated type that only personal business perception, instincts, and work experience are not enough to take suitable and right business decisions. Economic concepts and analysis techniques can provide a great help in this segment of decision making. The way economic interpretations and theoretical frameworks can be utilized in determining business related issues, established the base for Managerial Economics.
Managerial economics course will discuss the economics theoretical frameworks involved with the implementation of the economic concepts to take a logical and appropriate decision. It allows economist to implement the detailed examinations of microeconomics to the administration components and business. It utilizes different mathematics formulas to determine the relationship among various entities. Managerial economics course is very similar to business Economics. It is the branch that depends massively on the theoretical framework of regression, correlation and calculus that is why it is bit complicated. It is the component that can be implemented in nearly any kind of business related issue. Although, risk analysis, manufacturing analysis, pricing and capital analysis are the primary functions.
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