Analyzing Impact of Managerial Economics

Abstract

Economics impacts our day-to-day lives. Economics influences the decisions taken by the managers of business firms or organizations. Any business is a part of an economy. Economic conditions heavily affect the business activities and vice-versa. The per capita income of the citizens will define their purchasing power on the basis of which, the business enterprises will decide what products to be manufactured and sell. A new enterprise has to forecast and analyze the demand for the product, which it wants to sell. The day to day product market has to decide a viable price depending upon the interaction between the demand and the supply. Thus, management practitioners brought economics to their perspective and developed ‘Managerial Economics’.