*Introduction *What is Management ? Duties ,functions and role of manager *What is Economics?

*Definition of Managerial Economics * Relationship to Economic Theory *Relationship to decision science *Business environment and managerial economics *Scope of Managerial economics Module -1 Meaning, Module -1 Meaning, nature and scope. nature and scope.

Introduction Modern business world is characterized by dynamism ,computerization, Awareness about environment ,caring for consumer satisfaction, worried about cost effectiveness etc.

Economies are no longer self-sufficient, inward-looking; added is the pressure of severe competition due to globalization. Darwins principle applies even today nay more strongly. Big corporates follow military strategies involving surprise, security and unity of command. Business units aim at a variety of goals / objectives. Problem of economizing and choice are most imp. for firms

Introduction continued----------continued----------Decision-making is a must at every stage.

Survival amidst uncertainties is no doubt challenging. Managerial Economics helps them to plan and implement decisions in such a complex and dynamic atmosphere.

ME or Business Economics or Economics of firms provides managers with different tools. techniques and principles enabling them make optimum use of resources within constraints. The term Managerial Economics involves 2 terms; former refers to involves 2 terms; former refers to acts and decisions of manager later acts and decisions of manager later to a subject matter. to a subject matter. Answer to this question takes us to jobs ,duties and functions of manager.

Manager as an organizer has to take decisions involving various parties (Owners, shareholders, employees, rivals customers, suppliers , creditors , distributors ,society and government.) Moreover their interests are separate and at times even conflicting.

This means the manager has to co-ordinate various goals in a fruitful manner; justice to everybody warrants balanced approach and rational behavior.

Management is an art as well as a science. Careful decisions and foresight are pre-requisites of a good manager.

What is Economics ?
It is a science of earning and spending wealth as

defined by the Father of Economics Adam Smith in his classic work An enquiry into nature and causes of the Wealth of Nations.
In the opinion of Alfred Marshall it was study of mankind in ordinary business of life.

Lionel Robbins gave us the most accepted scarcityoriented definition of Economics. He says Economics is a social science which studies human behavior as a relationship between unlimited wants and scarce means which have alternative uses.