The practical use of economic principles in managerial economics is used to solve the future

planning and problems of management. So it is considered to be an ideal combination of art and

science.
So To know the nature of managerial economics, it is important to know whether it is science or
art or both.

As a Science
The ordering knowledge is called science, in which rules are made and the truth of the rules is
examined. On examining this matter, managerial economics seems like science, because it also
has rules and principles. These principles are discovered, and it is also suitable for predicting
with orderly knowledge.

Part of ideal Economics

Real science then makes absolute interpretation of causes and consequences. “what” and
“what should be” ideal science is the bridge between both. Thus, Like we told someone to do
this work and how much you can do that work. And what we had, the ideal science shows us
the difference between the two of them. From this point of view, this is also true in managerial
economics.

That is the anticipated work you do. And how much work we do, how much difference is there
between them. The task of finding both of them is also of managerial economics.

Role and Responsibilities of Managerial Economist

Thus, The ideal decision was taken by studying the economics of the egg. So that the ultimate
purpose of the firm’s benefit maximization can be met. This gives importance to policy-making
rather than theoretical interpretation. Thus, this is the ideal and policy science.

An Art
The process of doing any work in the best way is art. in the managerial economics. Such a
manager moves the firm between many internal and adventure uncertainties.

Thus, She chooses only those instruments from the limited means of alternative use. Not only
scholarly but also friendly conditions. In managerial economics, managers have many methods
in any form.

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So, There is a means for doing any work. To do any work but to use the same methods and
tools in them, which can bring maximum benefit to themselves and at least loss.

Conclusion
It is clear from the appropriate explanation that due to the theory of managerial economics, it is
a part of microeconomics.
Therefore, due to the strange mix of science and art in managerial economics, it is given the
Name of scientific art, it is both science and art.

Thus, Managerial decision areas include:

 Assessment of investible funds.

 Selecting the business areas.
 Choice of product.
 Determining the optimum output.
 Sales promotion.

Scope of Managerial Economics

Managerial economics has emerged as a new branch of knowledge and Managerial economics
is currently undergoing development.

Therefore, there was not much known about its area, but I am going to explain the areas which
are usually seen. Which prove to be very helpful to you.
1. Production and Cost Analysis
Managerial economics determines the quantity of production and analyzing. so the needs of its
(product, planning of quantity of profit, pricing policy) are crucial for effective control of the firm.

Thus, under the assumptions of cost-average marginal cost expansion and variable costs, 2.
short-term and long-term costs, 3. considerations of measuring procedures, 4. costs and
relationships in production quantities, 5. the process of the production process and equation
point analysis etc.

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2. Demand Analysis and Forecasting

All the economic theories and perceptions related to the demand of the firm are studied and by
analyzing the prospect,
the means of production are imposed in production work by making future projections of the
demand.

Thus, 1. Demand rules, 2. The elasticity of demand and interpretation of income-effect, 3.

Replacement effects and price impact, 4. Along with economic theory and psychological
perception and 5. External circumstances, the effect of demand is taken care.

3. Price Policies and Practices

Pricing is a matter of paramount importance for any firm. Because of the success of the firm’s
benefit, the demand for the product depends a lot on it. including pricing, principles are
examined in different conditions of the market like 1. Full competition, 2. Incomplete
competition, 3. One right, non-negotiable and 4. Monopolistic competition, value related
forecasts, and sales problems are also analyzed under it.

Therefore, It also involves short-term and long-term pricing policies.

Thus, Useful in showing the path of economic well-being- Business economics inspires
managers to operate the business in such a way that the path of maximum economic welfare is
paved.

4. Profit Maximization or Profit Management

The purpose of each producer and the business firm is to maximize profit. The amount of profit
depends on the cost and cost.

Thus, the managerial economics 1. The benefits of maximization and profit planning for the
benefits, 2. The nature of the assumptions and benefits, 3. The measurement of profit 4. The
appropriate benefits policy comes into the ordered zone.

5. Capital Management
Capital is the life of the modern business. For the 1. proper planning of capital loss, 2. proper
planning of capital loss, and 3. effective control of the cost of capital to the managers. the
calculation of the rate of profit received on it.

Thus, the evaluation of the discretion for the full election from the alternative expenditure of
capital. and expenditure and Study of topics etc. so that is the important part of
capital management in the managerial economics.

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The sources of capital known by the managers are used in the way of using those sources in
the right way, and the firm is given the most benefit. This is all described in this area.

6. Project Evolution
When business projects are evaluated, the utility and poets of different schemes of business are
traced. So that those deficiencies and utilities should be adjusted and used by making new
rules.

Thus, the exchange analysis describes the use of self-proportionate means of measuring
instruments based on demand and cost analysis. and the equality in the value policy.

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7. Others
Which does not come into the study area of managerial economics? So is considered in the
periphery of the field of managerial economics, which is as follows.

Industry and Trade Policies of Govt.

The government changes its business policies whether the central government, state govt., This
change affects every business, firm. That’s why it affects the managerial economy, it comes
under this.