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Managerial economics assignment help for all economics assignment questions and topics. Advanced support from our top economics problem solvers for complex managerial economics assignments, homework, projects, exams, tests, quizzes & more.

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BASICS OF MANAGERIAL ECONOMICS ASSIGNMENT HELP

Economics is an integral part of any business. Organizations make their decisions on investments, assumptions and forecasting on the basis of findings from economic studies aimed at finding ways to effectively utilize scarce resources.

Managerial economics in this regard is a specialized area of business management that deals with the issues of an organization’s internal economics by applying economic concepts. It can be defined as the combination of economic theory and management concepts which helps the decision making process of a business. Managerial decision making usually involves establishing organizational objectives, identifying business problems, developing alternative solutions, selecting the most effective and efficient solution, and implementing the selected solution. It is used by managers in organizations of all sizes to solve business problems, eliminate obstacles to business activities, arrive at logical decisions, and plan for the future.

Effective use of economic concepts also helps them in making informed decisions on consumers, suppliers and the ways to cope with competition. Managerial economics focuses on problem solving through the application of both microeconomics and macroeconomics even though key concepts used here are taken from the microeconomic theory of a firm according to which, wealth maximization is the primary aim of a firm.

Econometrics or statistical and analytical tools are extensively used to assess concepts and solve practical problems of a business. Hence, managerial economics can also be understood as a tool for translating economic concepts into business practice. While it enables profit-making firms to accurately analyze and determine prices, production, demand, capital budget, and risks with the use of factual data; it also helps nonprofit organizations such as educational institutions and hospitals in efficient allocation of resources.

SCOPE OF MANAGERIAL ECONOMICS ASSIGNMENT HELP

The scope of managerial economics is relatively narrow. Managers use microeconomics and a limited number of macroeconomic concepts to solve problems specific to one organization. Focus is on utilizing scarce resources in a way that benefits the business, suppliers and customers. It seeks to answer three fundamental questions for the organization: what to produce; for whom to produce; and how to produce. To address the internal issues of the business managerial economics applies the microeconomic theories of demand, production, price, and capital investment as well as the concepts of profit analysis, market structure and decisions. It also applies the macroeconomic concepts of social, economic and political environments to solve problems rooted in external business environment.

CHARACTERISTICS OF MANAGERIAL ECONOMICS ASSIGNMENT HELP

SCIENCE: Just like science, managerial economics is a systematic body of knowledge developed from methodical observations; makes conclusions after extensive testing and trailing; and its principles are universally applicable at least partially. Another similarity can be seen in the significance of analytical, statistical, and mathematical methods to solve problems in both these fields. The notable difference which sets it apart from other sciences is that it uses the highly unpredictable human variable. Therefore, conclusions made in managerial economics are not rigid as they are for the other fields. Using human variables is also the reason because of which its principles are not universally applicable in full, and modifications are required for different organizations and specific situations.

ART: It requires mangers to be skilled in the art of utilizing knowledge, understanding and individual capabilities to achieve organizational objectives. It also emphasizes on the application of creative skills to solve problems and make important decisions.

USE OF MICROECONOMICS: Managerial economists have the responsibility of studying and managing the internal environment of their organizations so that long-term profitability can be achieved. It requires using the concepts and theory of microeconomics to deal with the problems of individual businesses rather than the entire industry, market, or economy.

USE OF MACROECONOMICS: However, firm-specific decisions managerial economists need to make, they know that they are not working in isolation and therefore need to factor in the components of the external environment such as trade policies, price levels, income of consumers, employment rates, exchange rates, balance of payments, and general condition of the economy in their observations and decisions. All these aspects of managerial decision-making are related to the area of macroeconomics.

MULTI-DISCIPLINARY: The study and application of managerial economics is multi-disciplinary in the sense that it uses concepts and tools from several disciplines such as finance, accounting, mathematics, statistics, human resources, operation research, production systems, and marketing.

PRAGMATIC, DYNAMIC AND MANAGEMENT ORIENTED: It is used by an organization’s management as a tool to identify rational solutions for the practical problems and uncertainties of business. It provides a pragmatic approach for establishing business goals, devising effective policies and decision-making. Also, given that situations and human variables such as consumers and human resources are usually different for different businesses, decisions and policies need to be dynamic so that they can be adapted according to the changing dynamics of these factors.

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TYPES OF MANAGERIAL ECONOMICS ASSIGNMENT HELP

Different economists see managerial economics differently. The utility of concepts may differ for someone whose priority is customer satisfaction from someone who prioritizes efficient production. Therefore, based on the approach taken by the business manager, there are three different types of managerial economics:

LIBERAL: The liberal managerial economics sees the market as a democratic and interference-free place where consumers can make their own decisions and choose from several alternatives. This means that businesses must operate according to the demand and market trends and satisfy consumer needs.

NORMATIVE: It states that decisions made by the management are based on real-life experiences and normal practices. This practical approach to decision making is reflected in the product design, marketing, analysis of supply and demand, hiring of employees, forecasting and every other decision related to the growth of the business.

RADICAL: This type of managerial economics is concerned with finding radical or unseen solutions to problems. It is generally effective when conventional approaches fail to deliver results. It requires managers to have the extraordinary ability to look beyond normal economic methods to find and confidently implement unconventional solutions. Radical managerial economics prioritizing consumer needs over profit maximization.

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PRINCIPLES OF MANAGERIAL ECONOMICS

To explain the role of managerial economics in different areas of business operations, ten key principles in three different categories were proposed by the noted macroeconomist N.G. Mankiw. The three categories are aimed at understanding the decision-making process and interaction of people and businesses and the way the economy operates. The ten principles are:

People face tradeoffs: People make their buying decisions by choosing from the options available in the market and in the process make tradeoffs between utilities of different options.

Opportunity cost: It is the result of the decision to choose one product over the others which requires foregoing the benefits of the next best alternative. The foregone benefits make up the opportunity cost.

People think of the margin before making decisions: People with rational thinking consider and compare the profit they will make when choosing from various options and investing their capital.

People are motivated by incentives: People always look for something extra when choosing an alternative. Incentives or added benefits motivate the buying decision whereas a lack of incentives discourages the decision.

Trade can benefit everyone: Trade provides both the seller and buyer with a medium to exchange goods and services. A fair chance to choose the best alternative or make money from something they are good at benefits everyone in the market.

Markets are an effective way to organize economic activity: Markets provide a platform for interaction among the buyers and the sellers. Economic activity takes place in an organized order when buyers communicate their demand and sellers supply goods and services on the basis of this demand.

Government can improve the market outcome: By intervening in business operations, the government can significantly improve unfavorable market conditions or facilitate social welfare by implementing regulatory policies such as fixing minimum wage and eliminating monopolistic market.

Production of goods and services decide the standard of living: Businesses play a key role in the growth of a country’s economy. To contribute positively to economic growth they must be capable of producing adequate amount of goods and services which in turn improves the GDP and raises the country’s overall standard of living.

Prices rise when money is in high supply: Availability of surplus money increases the spending capacity of consumers which increases demand and ultimately, the prices of goods and services. When supply fails to meet the demand, the market sees higher inflation rates.

Tradeoff between unemployment and inflation: Government policies to reduce unemployment and improve the economy lead to higher demand which again results in inflation.

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Managerial Economics Assignment Help Online

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APPLIED ECONOMICS ASSIGNMENT HELP:

Applied Economics utilizes core economic theories and econometrics to address existing economic problems. It reduces the abstraction of core economics and provides a more practical approach to understand and solve problems related to the economy. Applied Economies is used to solve issues in a variety of fields. These fields include:

BEHAVIOURAL ECONOMICS ASSIGNMENT HELP:

Behavioral Economics studies the behavior of individuals and organizations and its impact on economic decision making. Behavioral factors include:

Behavioral Economics state that every human being is irrational and incapable of taking the right decision. It studies the reason between such irrational behaviors. For example, an individual might think about career options, saving options, which phone to buy, retirement plans. Behavioral economics tries to explain why an individual favors one option over the others. Companies have started to implement behavioral economics to increase sales of products and goods.

For example: Amazon might sell an iPhone through their online vendors for 800$ but decrease the price to 720$ during Amazon Prime Day Sale. The consumer feels that the offer is a good deal that cannot be missed and ends up falling into the temptation.

Behavioural economics include the following:

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