Features of Managerial Economics

On the basis of meaning and definition of managerial economics, characteristics of managerial economics can be outlined as:
Managerial Economics is Microeconomics: Managerial economics is micro in character because it is concerned with that part of microeconomics which has greatest interest and importance to managers or with smaller units of the economy. It studies the problems and principles of an individual firm or an individual industry. It assists the management in evaluating and forecasting the trends of market.
Managerial Economics is Normative Economics: Managerial economics belongs to normative economics. Managerial economics is concerned with what management should be under particular circumstances. First, it determines the goals of the firm, agency, or organization, and then develops the way to attain these goals. It deals with future planning, policy making, and decision-making and making rational utilization of the available resources of the enterprise.
Managerial Economics is Pragmatic: Managerial economics is pragmatic. It avoids difficult issues of economic theory. It tries to solve the managerial problems that appear in their day-to- day functioning.
Managerial Economics uses theory of firm: Managerial economics uses that economic concepts and principles which are known as theory of firm. Thus, the scope of managerial economics is narrower than scope of pure economic theory.
Managerial Economics is Macroeconomics: Though, Managerial economics is micro in character and concern with the study of problems of an individual firm or industry but it takes the help of Macro economics also because it is necessary to understand the circumstances and environment in which an individual firm has to work. Knowledge of many issues concerning of macroeconomics in necessary for the successful management of a firm. These issues include business cycles, taxation policies, industrial policy of the government, price and distribution polices and Anti-Monopoly policies etc.
Main aim of managerial economics is to help the management: Main aim of managerial economics is to help the management in making correct decisions and preparing plans and policies for future.