What is Managerial Economics? | Scope, Concepts, principles, Nature of Managerial Economics — Transcript

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1. 0:04in this video you are going to learn
2. 0:06managerial economics where we explore
3. 0:08how businesses make informed decisions
4. 0:10in a constantly changing economic
5. 0:12landscape
6. 0:13in today's competitive World
7. 0:15understanding the principles of
8. 0:17managerial economics is essential for
9. 0:19Effective management and sustainable
10. 0:21growth
11. 0:23in every business managers face a number
12. 0:25of choices
13. 0:26they need to allocate resources wisely
14. 0:29determine pricing strategies forecast
15. 0:31demand analyze market trends and assess
16. 0:34risks
17. 0:35this is where managerial economics comes
18. 0:38into play a discipline that combines
19. 0:40economic theory with practical business
20. 0:42knowledge
21. 0:44managerial economics provides a
22. 0:46framework for decision making by
23. 0:48applying economic Concepts and tools to
24. 0:50real-world business problems
25. 0:52by utilizing these principles managers
26. 0:55can optimize their decision-making
27. 0:57process and improve the overall
28. 0:58performance of their organizations
29. 1:02so managerial economics can be defined
30. 1:05as the branch of Economics which deals
31. 1:07with the application of various Concepts
32. 1:09theories methodologies of Economics to
33. 1:12solve practical problems in business
34. 1:13management
35. 1:15let's dive into some key concepts of
36. 1:17managerial economics that Empower
37. 1:19managers to make informed decisions
38. 1:22number one
39. 1:23supply and demand analysis understanding
40. 1:26the forces of supply and demand is
41. 1:28necessary for businesses to determine
42. 1:30optimal production levels and pricing
43. 1:32strategies
44. 1:34two cost analysis cost analysis helps
45. 1:38managers assess production costs
46. 1:40identify cost drivers and make informed
47. 1:43decisions about resource allocation
48. 1:46number three pricing strategies setting
49. 1:50the right price is a critical decision
50. 1:51for businesses
51. 1:53managerial economics helps determine
52. 1:56optimal pricing strategies by
53. 1:58considering costs competition and
54. 2:00consumer Behavior
55. 2:02I have discussed in detail the pricing
56. 2:04strategy in a separate video check that
57. 2:07video link in the description
58. 2:10four
59. 2:11Market structures understanding
60. 2:13different Market structures such as
61. 2:15perfect competition monopolistic
62. 2:17competition oligopoly
63. 2:19Etc enables managers to navigate the
64. 2:22competitive landscape effectively
65. 2:255. risk analysis business decisions
66. 2:29involve inherent risks and uncertainties
67. 2:31managerial economics equips managers
68. 2:34with tools to assess risks make informed
69. 2:37judgments and develop contingency plans
70. 2:41by integrating these Concepts into their
71. 2:43decision-making process managers can
72. 2:45gain a Competitive Edge and drive their
73. 2:47organizations towards success
74. 2:51also some economic principles that
75. 2:53managers should keep in mind
76. 2:55the incremental principle the decision
77. 2:58is sound if it increases Revenue more
78. 3:00than cost or if it reduces cost more
79. 3:02than Revenue
80. 3:04the principle of time perspective
81. 3:06a decision should take into account both
82. 3:09the short run and long-run effects on
83. 3:10revenue and cost giving appropriate
84. 3:13weight to the most relevant time period
85. 3:15in each individual decision
86. 3:17the discounting principle if a decision
87. 3:20affects cost and revenue at future dates
88. 3:22it is necessary to Discount these costs
89. 3:25and revenue to present values before a
90. 3:27valid comparison of Alternatives as
91. 3:29possible
92. 3:30let's move on to the nature of
93. 3:32managerial economics
94. 3:34managerial economics can be termed as a
95. 3:37science in the sense that it fulfills
96. 3:39the criteria of being a science
97. 3:41managerial economics is the science of
98. 3:44making decisions and finding
99. 3:45Alternatives keeping the scarcity of
100. 3:47resources in mind
101. 3:49in science we arrive at any conclusion
102. 3:52after continuous experimentation
103. 3:55similarly in managerial economics
104. 3:57policies are formed after constant
105. 3:59testing and trailing
106. 4:01in science principles are universally
107. 4:04acceptable and in managerial economics
108. 4:06policies are universally applicable
109. 4:10thanks for watching
110. 4:12if you want to read it in detail or
111. 4:14download the PDF go through the link in
112. 4:16the description
113. 4:18if you find the video helpful please
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116. 4:28foreign