How Economics Concept Will Help a Manager in Making Business Decisions? Essay

1095 Words5 Pages
How economics concept will help a manager in making business decisions? Decisions made by managers are crucial to the success or failure of a business. Roles played by business managers are becoming increasingly more challenging, as complexity in the business world grows. Business decisions are increasingly dependent on constraints imposed from outside the economy in which a particular business is based – both in terms of production of goods as well as the markets for the goods produced. The impact of rapid technological change on innovation in products and processes, as well as in marketing and sales techniques contribute to the increasing complexity of the business environment. Moreover, because of increased globalization of the marketplace, there is more volatility in both input and product prices. The continous change in the economic and business environment is making it even more difficult to accurately evaluate the outcome of a business decision. In such a changing environment, sound economic becomes all the more important as a basis of decision making. Managerial economics is a discipline that is designed to provide a solid foundation of economic understanding for business managers to make well-informed and well-analyzed managerial decisions. The contribution of economics towards the performance of managerial duties and responsibilities is of prime importance. The contribution and importance of economics to the managerial profession is akin to the contribution of biology to the medical profession and physics to engineering. It has been observed that managers equipped with a working knowledge of economics surpass their otherwise equally qualified peers, who lack knowledge of economics. Managers are responsible for achieving the objective of the firm to the maximum possible extent with the limited resources placed at their disposal. It is important to note

More about How Economics Concept Will Help a Manager in Making Business Decisions? Essay

Open Document