Economics, especially Managerial economics is a key subject component of the MBA curriculum as the principle related to the subject is being used in every kind of managerial activity. The key aim of economists in B-Schools/MBA colleges is to basically carry out investigation and teach how the market dynamics; how to manage the production/consumption and allocation in the situation of the fund scarcity. It helps the students to understand the know-how about several participants in the economy to make optimal decisions.
Understanding the issues and carry out analysis of the economic concepts and economic principles will help in formulating the rational managerial decisions. The study of the economic theory will bridge the curriculum quantitative techniques, such as regression analysis, correlation and calculus.
By studying the Managerial Economics, it will help the managers as an attempt to optimize the business decisions to attain the firm’s objectives. The study will include constraints imposed by scarcity, for example through the use of operations research, mathematical programming, game theory for strategic decisions and other computational methods. It can be drawn from profoundly from quantitative techniques like regression analysis, correlation and calculus.
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