1. Discuss the salient features and significance of managerial economics?

Hy,

Managerial economics is the "application of the economic concepts and economic analysis to the problems of formulating rational managerial decisions.



The salient features of Managerial Economics are as follows:



Managerial Economics is more realistic, pragmatic and highlights on. ...It is science of decision-making. ...It is both conceptual and metrical and it helps the decision-maker by. ...It uses various macroeconomic concepts like national income, inflation,etc.



These are the features of managerial economics.



SIGNIFICANCE OF MANAGERIAL ECONOMICS







1.It helps in decision making







2.Decisionmaking means a balance between simplification of analysis to be manageable and complication of factors in hand







3.It helps the manager to become an more competent builder







4.It helps in providing most of the concepts that are needed for the analysis of business problems,the concepts such as elasticity of demand ,fixed, variable cost, SR and LR costs, opportunity costs,NPV etc.,







5.It helps in making decisions in the following.



I hope these points will help you.

Cheers !!

Managerial economic is more concerned with study of macroeconomics and microeconomics as two broad category.



This further deals with market factors for any eceonomy, Supply demand , Fiscal and Monetary policy, GDP , Inflation, Recession, etc.



It comprises of application of economic policies for best management decisions and strategic debt Planning.



It helps business to discover pricing Analysis, production and risk analysis, capital budgeting and expenditure, revenue and profit Analysis.



The subjects teaches various Statistics models to derive insights for making particular decision which is most salient feature.

Managerial economicsis the "application of the economic concepts and economic analysis to the problems of formulating rational managerial decisions".it  is sometimes referred to asbusiness economicsand is a branch ofeconomicsthat appliesmicroeconomicanalysis to decision methods of businesses or other management units.



As such, it bridges economic theory and economics in practice.it draws heavily from quantitative techniques such asregression analysis,correlationandcalculus.if  there is a unifying theme that runs through most of managerial economics, it is the attempt tooptimizebusiness decisions given the firm's objectives and given constraints imposed by scarcity, for example through the use ofoperations research,mathematical programming,game theoryfor strategic decisions,and othercomputational methods.



Managerial decision areas include:



assessment of investible fundsselecting business areachoice of productdetermining optimum outputsales promotion.



Almost any business decision can be analyzed with managerial economics techniques, but it is most commonly applied to:



Risk analysis various models are used to quantifyriskand asymmetricinformationand to employ them indecision rulesto manage risk.production analysis microeconomic techniques are used to analyzeproduction efficiency,optimum factor allocation,costs,economies of scaleand to estimate the firm's cost function.Pricing analysis microeconomic techniques are used to analyze variouspricing decisionsincludingtransfer 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'scapital purchasing decisions.