managerial economics meaning in malayalam

It is the application of economic analysis to evaluate business decisions.The primary function of a manager in business organisation is decision making and forward planning under uncertain business conditions. With the growing variability and unpredictability of the business environment, business managers have become increasingly concerned with finding rational and ways of adjusting to an exploiting environmental change.The problems of the business world attracted the attentions of the academicians from 1950 onwards.

(vii) What are the strategies of five year plan? Instead of explaining what a firm is doing, we explain what it should do to make its decision effective. In real business situation, there is seldom an investment which does not involve uncertainties. Subject Matter of Marginal Economics 7.Relation to Other Branches of Knowledge 8. If the inventory level is very low, it hampers production.

In order to discover some basis for business activity, the method becomes generic in character.The main objective of this method is to apply mind in the matter of various business problems by discovering the past trend regard­ing facts, events and attitudes and by demarcating the lines of development of thought and action. Definition 3. Need to translate "managerial economics" to Malayalam? (viii) What will be the outlook of the government regarding its commercial and economic policies?

Hence managerial economics is economics applied in decision making. Economics has a logically consistent system of reason­ing. In appraising a company, we must first understand how profit arises. The most widely used model in modern forecasting is the gross national product model.The theory of decision making is a relatively new subject that has a significance for managerial economics.

A managerial economist’s first responsibility, therefore, is to reduce his stocks, for a great deal of capital is unprofitably- ably tied up in the inventory.The managerial economist’s contribution will be adequate only when he is a member of full status in the business team.

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Investment deci­sion covers issues like the decisions regarding the amount of money for capital investment, the source of financing this investment, allocation of this investment among different projects over time.

Sales decision is concerned with how much to produce and sell for maximising profit. Some of the important management decisions are production decision, inventory decision, cost decision, marketing decision, financial decision, personnel decision and miscellaneous decisions. It studies the behaviour of the individual units and small groups of such units. It is difficult to locate any order, sequence or law in such a confused and complex structure.

At universities, the subject is taught primarily to advanced undergraduates and graduate business students. Thus it enables the managerial economists to describe or present the picture of a phenomenon or phenomena under investigation.Decision making is an integral part of today’s business management. In this context, it is essential for the managerial economist to engage in model building.At times, to analyse behaviour we use models. This is what is meant by demand forecasting.This forecast can also serve as a guide to management for maintaining or strengthening market position and enlarging profit. (i) What should be the production schedule for the coming year? The managerial economist can put even the most sophisticated ideas in simple language and avoid hard technical terms. Techniques or Methods of Marginal Economics 9.

A managerial economist cannot apply experimental methods to the same extent and in the same way as a physicist can in physical sciences.We usually adopt an inductive as well as deductive approach in any analysis of managerial behav­iour. W. B. Allen, Managerial Economics This logical core of theory cannot easily be detached from the empirical part of the theory. A model may be in the form of diagram, a verbal description or a mathematical description. The internal factors lie within the scope and operation of a firm and they are known as ‘Business Operations’.The prime duty of a managerial economist is to make extensive study of the business environment and external factors affecting the firm’s interest, viz., the level and growth of national income, influence of global economy on domestic economy, trade cycle, volume of trade and nature of financial markets, etc. Expenses are met and incomes derived.

Computer is not only used for scientific or mathematical applications, it may also be used for some business applications, docu­ment generations and graphical solutions. Scientific method alone can bring about confidence in the validity of conclusions. The managerial prob­lem of planning and control of capital is examined from an economic stand point.