What is managerial economics?
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Managerial economics is a subfield of economics that specializes specifically in economic analysis that would help managers in their process of making decisions. This field is much more hands-on than more "academic" subfields of economics. Therefore, courses in this field often make use of simulations and experiments.
In managerial economics, the main focus in on microeconomics. Subjects studied include supply and demand analysis, consumer demand theory, risk analysis, and regulatory theory. These subjects are all studied in order to understand how to make decisions that will bring the best results for a manager's firm.
Managerial economics refers to those aspects of economics that are more useful to people involved in management of business enterprises. There are no topics under economics which may be classified as pertaining only to managerial economics and not to any other branch of economics. As a matter of fact the aspect of economics that are useful for a manger will depend very much on the kind of business and the responsibilities of the manager. For example, a production manager is likely to benefit more by understanding of the production function in economics, and may not find the concepts relating to international exchange of much use. However a senior manager in a bank with international operations is likely to find a understanding of a wide range of economic concepts essential for performing his function effectively.
Thus, frequently, managerial economic is same as basic economics that is explained and taught with greater emphasis on managerial tasks and problems of management.
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