Managerial Economics Notes/ Managerial Economics Study Material
Managerial economics essentially constitutes of economic theories and analytical tools that are widely applied to business decision-making. Economic theories and techniques of economic analysis are applied to analyze business problems, evaluate business options and opportunities with a view to arriving at an appropriate business decision. Managerial economics is thus constituted of that part of economic knowledge, logic, theories and analytical tools that are used for rational business decision making.
In other words, Managerial Economics can be viewed to lie between economics on the one hand and business management on other. The former consists of a theory with an accepted methodology and an analytical rigour. The latter, on the other hand is concerned with the problems of decision making. As such Managerial Economics provides an insight into the application of economics to solving business problems.
Managerial economics provides a systematic and logical way of analyzing the business decisions and both day to day and long run planning decisions. Managerial Economics teaches students how to make superior business, not how to build models. These notes covers the syllabus of professional courses like MBA, C.A., I.C.W.A, I.C.S and M. Com. Since these notes are written mainly to meet the requirements of students preparing for exams, it covers the relevant and important aspects of both micro and macro- economic theories. These notes intend to explain in non-technical language, the economic concepts, tools of analysis and their relevance to business decision making, and also the influence of economic environment on business decisions.
Utility Analysis – Cardinal and Ordinal Concepts of Utility
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