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Managerial economics is the application of the economic concepts and economic analysis to the problems of formulating rational managerial decisions. It is also referred to as Business Economics and is one of the crucial disciplines of study as this branch of economics applies microeconomic analysis to decision methods of businesses or other management units.
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As per our managerial economics assignment helpers, almost every business decision can be analyzed using managerial economics techniques, but it is most commonly applied to:
Risk analysis: There are several models which are used to quantify risk and asymmetric information and to employ them in decision rules to manage risk.
Production analysis: Microeconomic techniques are used to analyze production efficiency, optimum factor allocation, costs, economies of scale, and estimate the firm's cost function.
Pricing analysis: Microeconomic techniques are used to analyze 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.
As a scholar who is pursuing managerial economics degree course at undergraduate, postgraduate, or doctorate level, you will learn about several quantitative techniques such as regression analysis, correlation, and calculus. According to our managerial economics assignment helpers, managerial decision areas include:
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