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Some fields of reference to managerial economics
Management economics deals with the business integration of product and services which helps in the growth of the business. Some of the fields of references of managerial economics which our University students should know for business assignment help are as follows:
- Demand and forecasting analysis: Demand analysis is the most important thing which every economist has to do before starting any of the business. Before demand forecasting, no business can understand the requirement of the business.
- Cost and production analysis: What are the products that a business is going to produce is an important question for every company. Costing of a product is also an important factor which has to be considered by every business before giving a cost to a particular product. Cost Analysis has to be done on the basis of the cost of the competitors and the cost incurred in the production of the product.
- Pricing decision– This is one of the toughest factors of every business. Pricing of a product depends upon how much production unit for a manufacturing firm is spending on the branding of a product and the advertisement of the product as well as on the packaging of a product. Pricing also depends upon the demand and supply of a product and what price competitor is offering in the market.
- Profit management– Every business works to earn a profit. Business can run on Profit only if a company has done the forecasting correctly.
- Capital management– Huge amount of money a business used to spend on manufacture a product and services. A company has to see how much capital they can spend on the production of machinery and on the labour hired by them.
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Essentials of managerial economics
Nature of managerial economics are:
- Market knowledge– One should have a proper market knowledge before they enter into the market for the production of any goods and services or for the sale of any goods and services. Understanding of the market, who are their customer and what are the products they are going to sell them.
- Allocation of resources– The resources available within the company should be allocated properly so that they can give the best possible results for the company. Major resources of the company are man and machinery.
- Microeconomics– One should know what are things required to grow the business and what are the resources available within the company.
- Macroeconomics– A company must understand that what is the investment they are going to make to make a company better or for manufacturing any product and services. What kind of stuff they must hire, and what is the capital required for increasing the business must be cleared before coming to market.
- The positive and normative approach to business– One must be clear about what was the business area and what changes can be made to make it much better.