Determine the application of managerial economics, Managerial Economics

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Determine the Application of managerial economics

Application of managerial economics isn't restricted to profit-seeking business organisations. Tools of managerial economics can be applied equally well to decision problems of non-profit organisations. Mark Hirschey and James L. Pappas mention the example of a non-profit hospital making use of managerial economics techniques for optimisation of resource use. Whereas a non-profit hospital isn't like a typical firm seeking to maximise its profits, a hospital does strive to offer its patients the best medical care possible given its limited staff (nurses, doctors and support staff), equipment, space and all other resources.


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