Contributions of economic theory to business economics, Managerial Economics

Assignment Help:

Contributions of economic theory to business economics

According to Baumol, there are 3 key contributions of economic theory to business economics.

1.  Practice of building analytical models that help in recognising the structure of managerial problems and eliminating minor details which may obstruct decision-making has been derived from economic theory. Analytical models assist in eradicating peripheral problems and assist the management in retaining focus on core issues.

2.  Economic theory comprises a founding pillar of business analysis- 'a set of analytical methods' thatmay not be applied directly to specific business problems however they do improve the analytical capabilities of business analyst. 

3.  Economic theories provide an unequivocal perspective on several concepts used in business analysis, thatenables the manager to swerve from conceptual pitfalls.

 


Related Discussions:- Contributions of economic theory to business economics

Enumerate the scope of managerial economics, Enumerate the Scope of manager...

Enumerate the Scope of managerial economics The scope of managerial economics contains following subjects:  1. The Theory of demand 2. The Theory of production 3. The

Central characteristics of simon satisfying behaviour model, Q. Central cha...

Q. Central characteristics of Simon satisfying behaviour model? The pattern of policy commitments which result from the bargaining process can be seen to be a specification of

Upper and lower bound, Consider the following table. It shows the market sh...

Consider the following table. It shows the market shares of seven clothing stores (A to G) in five dissimilar cities. a) Calculate the Herfindahl index (?H) for each city.

Central bank, CENTRAL BANK A modern central bank performs so many funct...

CENTRAL BANK A modern central bank performs so many functions of different nature that it is difficult to give any brief yet accurate definition of a central bank. Any definiti

Explain the short run cost function, In the short-run the firm can't modify...

In the short-run the firm can't modify or change overhead factors like equipment, plant and scale of its organisation. In the short-run output can be decreased or increased by chan

Paper money, Paper Money Due to the risk of theft, members of the publ...

Paper Money Due to the risk of theft, members of the public who owned such metal money would deposit them for safe keeping with goldsmiths and other reliable merchants who

Marris managerial enterprise model, Why do the managers in marris model max...

Why do the managers in marris model maximise their satisfaction by choosing a higher growth rate and a lower valuation ratio when compared to the profit maximisation

What is demand theory, What is Demand theory: Demand theory relates to ...

What is Demand theory: Demand theory relates to the study of consumer behaviour. It addresses questions like what incites a consumer to buy a particular product, why do consume

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd