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Managerial Economics is a part of Management Studies which focuses on solving the problems of business by applying theories and principles of Microeconomics and Macroeconomics. It is a specialized profession dealing with internal issues of an organization by using various theories of economics. It is a branch of business studies that draws elements from economics as well as management studies. Managerial economics helps managers to utilize economic principles in order to make management decisions regarding production, human resources, marketing, and finance. Managerial economics helps managers in recognizing how economic factors affect organizations and describing the economic significance on managerial behavior. Managerial Economics can be applied to both, profit and non-profit organizations. It makes use of economic concepts to make logical managerial decisions. It also makes rules for improving managerial functioning. Managerial Economics is used to bridge the gap between problems of policy as well as problems of logic. Managerial economics Accounting help managers to operate efficiently by utilizing scarce humans and capital resources.
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