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Business Managerial Economics

Business managerial economics sometimes referred to as business economics, is a division of economics that applies the microeconomic analysis to the decision methods of business managerial economics or other management divisions. As such, it bridges economic theory and the business managerial economics in practice. It draws heavily from quantitative procedures such as regression analysis and correlation. If there is a common theme that runs through most of the business managerial economics it is the attempt to optimize the business evaluation given the firm's objectives and given constraints imposed by scarcity, for example through the use of operations research and programming.

Almost any business managerial economics decision is to analyze with business managerial economics technique, applied such as:

    1. Risk analysis - various models are used to calculate risk and asymmetric information and to employ them in decision rules to manage risk.
    2. Production analysis - microeconomic techniques used to examine business managerial economics production efficiency, optimum factor allocation, costs, economies of scale and to estimate the firm's cost function.
    3. Pricing analysis - microeconomic business managerial economics techniques used to analyze various pricing decisions including transfer pricing, joint product, pricing, price inequity, price elasticity estimations, and choosing the optimum pricing method.
    4. Capital budgeting - Investment theory is used to inspect a firm's capital acquisition in business managerial economics decisions.

Business managerial economics sometimes referred to as business economics is a branch of financing that applies microeconomic c analysis to decision methods of businesses managerial economics or other management units. As such, it bridges economic theory and money matters in practice. It draws heavily from the quantitative techniques such as deterioration analysis and correlation. If there is a unifying theme that runs through most of business managerial economics it is the challenge to optimize business decisions given the firm's objectives and given the multitude of business and government limitations imposed by scarcity, for example through the use of undertaking business managerial economics research and the indoctrination. Almost any business decision scrutinizes with business managerial economics, but it is applicable to the economics risk analysis which is a prerequisite for many countries.

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