How Hospital administrator use concept of managerial economics

Hospital administrator can use tools and concepts of managerial economics to determine the optimal allocation of limited resources available to hospital. Additionally to non-profitgovernment agencies, business organisations and othernon-profit organisations (like cooperatives, museums and schools) can use the techniques of managerial decision making to attain goals in the most efficient manner.  Whereas managerial economics aids in making optimal decisions, one must be aware that it only explains the predictable economic consequences of a managerial decision. For illustration, tools of managerial economics can explain the effects of imposing automobile import quotas on availability of domestic cars, prices charged for automobiles and extent of competition in auto industry. Analysis of managerial economics exposes that fewer cars will be available, prices of automobiles will increase and extent of competition will be decreased. Though managerial economics doesn't address whether imposing automobile import quotas is a good government policy. This question includes broader political considerations involving what economists call value judgments.