The following article will guide you about how to maximize the value of a firm in managerial economics. Development of Basic Model Firm: The best way to study and analyse their activities is to develop an economic model of the firm. Such a model will furnish an aid to our study of managerial decision making. The first and basic model [...]
Let us make an in-depth study to know whether managerial economics is a science or an art or both. Managerial Economics as a Science: If we will study Managerial Economics as a science, we can come to this conclusion that it establishes a relationship between cause and effect by collecting, classifying and analysing the facts on the basis of certain [...]
The following points highlight the top five responsibilities of managerial economist. Responsibility # 1. To make a reasonable profit on capital employed: He must have a strong conviction that profits are essential and his main obligation is to assist the management in earning reasonable profits on capital employed in the firm. Responsibility # 2. He must make successful forecasts by [...]