RELATIONSHIP WITH OTHER DISCIPLINES:Many new subjects have evaded in recent year due to the

interaction among basic disciplines. While there are many loch new abject
in natural & local licenses. Managerial economics can be taken as the beet
couple of lunch a phenomenon among local licenses . Hence it is
necessary to trace its roots & relationship with other disciplines.
a).

Relationship with economics:- Economic has two aspects.

1). Positive economics:Positive economic M.E depends upon positive economics.
2). Normative Economic:N.E is deals with what ought to be done M.E is related to
normative economic since the firm has to give recognition of what is
good our bad form the point of view of society at large.
The relationship b/w M.E economics theory to may be viewed from

the point of view of the approached to the abject viz

1). Micro behaviors
1). Micro Economic & 2) Macro Economic Micro Economics is the study of
the economic behavior of individuals M.E is Micro Economic Theory deals
with the analyies of national income the level of Employment general level
Consumption & investment , public finance etc
b)

Management theory and akin:M.E. has been influenced by the development

in management

theory & acing techniques R.M coyer & J.E have elaborated it further to
give a satiating model where profit maximization is one among several
goals the firm keeps the focus of asking with in the firm is tats changing
from the concept of story keeping to that of managerial decision making
this has resulted in a new specialized area of study called managerial
asking.
c)

Managerial economic for managerial

The use of mathematics is signification for managerial economics

optimum use of recourses the major problem of firm is how to minimize
cost how to minimize profit or how to optimize sales mathematical
concept & techniques are widely used in economic logic to solve there
problem & decision making & forward planning . geometry algebra &
calculas are the major branch of mathematics which are of use in M.E
main thing mathematics like logarithms input out put deferments act
are used game theory inventory models use in M.E application
d)

M.E & statistics:M.E needs the tools satisfies in more than one way A Successful

businessmen must correctly established the demand for his product. He

should be Abe in incomes on demand only then can abject his out put this
is a basically for decision making & use in collecting data & analyzing
them to help in the decision making process.
e)

M.E operation Research :This is major concern of both M.E & O.R the development of

techniques concepts game theory programming inventory models this is

concepts with the comment problem arising out the men machines
materials & money & it helps M.E in the field of products development
material inventory control quality control marketing demand analysis thus
linear programming technique developed by George B. denting in 1947
has proved to be a useful tool for the M.E in mating of redacting
transportation with & allocation of purchase among different supplier
f)

M.E & the theory of decision making :The theory of decision making is a new field of knower growth in

second half of his century. Most of the economic theories explain a single
goal for the consumer i.e.. Profit maximization for the firm it is
developed to explain multiplicity of goals & lot of concertainity the theory
decision making is more prostration than negative economic theories.

g)

M.E & Computer Science :Computer have changed the way the functioned & economic or

business activity is no exception computer are used in data & ask

maintenance inventory & stock control & happy & demand prediction in
tact computer of business activities on a large scale has reduced the work
load of the management personnel M.E bridges the goop abstract theory
& management practices with the help of other allied science this has
been the secret of its because as practices science unlike the mainstream
of economic theory.
Problems of Economic:The economic problem emerges because our desire for goods and
services to consume is greater than our ability to produce those goods
and services. The demand for goods & services from human wants. There
are 3 types of human wants.
1) Biological wants are for the goods and services melded to human
life these are ford shelter and clothing these goods are after called
necessities.
2) Cultural wants for are for goods and services beyond enmities in
orders to maintain the socially accepted standard of living the idea
of a standard of living will vary with time & place .
3) Demon traction wants are for goods and services beyond convenes
thanks to moron tale communication we all know about the
lifestyles of the rich & famous and would not monitor our self there
goods and services are called luxuries.
Economic as that human want posse a critical characteristics
1).

Human Wants for Goods & Services to Consumer Are In The

Aggregate Insatiable:We lave never seen any human society enjoying wants& actuation

including united states today sadly the developed nations of the world
after can not ever provide for life sustaining biological wants.

The supply of good & services results from the production proem in
production various are brought to gather and input and combined to
create goods & services these input are clarified into three factors of
production.
Land is natural recourses or endowment from nature the payment
for the use of land is called rents & royalties.
Labor is all human effort physical & mental used in production the
payment for labor are wages and salaries.
Capital is all goods used to produce other goods and services.
Capital is also produced disables the payment for capital are interest for
debt capital and profits for equity capital.
The factors of production are versatile and may be combined
indefinite properties to produce the since thing thru U.S is capital
abundant used machinery inters for farming china is labor abundant and
used people intensively for farming.
2.

The wants of a society for goods and services to consumer

will always exceed the ability of that society to produce
goods and services
This problem Posen sessions policy junction all nations the advanced

as well as less developed it is after a cruel dilemma for their economic are
after hard proved events to punish the biological necessities.