Managerial Economics - created from Mind Map

Scope of M.E. is to solve problems of DECISION Making and Forward Planning Resource Allocation Inventory and Queing Problems Pricing Problems Investment Problems Optimum allocation of scarce resources. Involves Decision about holding Optimal Levels of Stocks of Raw Materials and Finished goods Over a period of Time Queing Problems involves Decision about Installations about additional Machines or hiring Extra labour to balance business lost if these activities not taken up Fixing Proces of firms Products Decision regarding Various Procong Methods to be applied FWD Planning involves Investment Problems i.e allocating Scare resources over time 1) Investing in new plants 2) Sources of Funds

Demand Analysis and Forecasting helps choose a product and planning output levels

Study of Demand Elasticity and Thoery of Cost helps the firm to determine and fix prices under various market conditions

Managerial Economics