Managerial Economics

Managerial economics is an important way of thinking about and analyzing the problems that arise in both profit making and non-profit making organizations. Although managerial economics is an amalgam of diverse subjects, the common core is the application of the fundamental principles of economics to analyze and help to solve problems faced by organizations in modern mixed or (market) economy.
The principles of economics and economic analysis are crucial to managers at all levels of hierarchies in progressive business organization. Managerial economics emphasizes the principles of economics that underline managerial practice. The stress is on applied economic analysis.
After the publication of Joel Dean’s first title on the subject in 1951, managerial economics has emerged as a separate discipline and been a popular subject in different program in business administration. Its popularity is attributable to the growing applications of economic theory in the commercial organizations as also in non-profit organizations and government companies. It is realize that the subject will become more and more popular in future. In this context one may quote Joel Dean whose comment about five decades ago seems very important and relevant even today.
“ The big gap between the problem’s of logic that intrigue economic theorists and the problems of policy that plague practical management needs to be bridged to give executives access to the practical contribution that economic thinking can make to top management policies”.