Factors Influencing Managerial Economics
What is MANAGERIAL ECONOMICS?
Coming towards the influencial factors,there are basically 3 factors that influence the managerial economics. These are
1) Human and behavioural consideration:- At times we see that managers decide to remain small or do not diversify even though they have enough opportunities waiting ahead.This is because they feel that such expansion can strain or hinder their life to an extent. So, their first and foremost aim is to take into account personal consideration and economic logic before reaching to a particular decision.
2) Technological factors:- The enhancement of technology play a major role in managerial economics. Managers usually consider new technologies whether it is planning, decision making or any major investment.Technology marks the security of a particular information. Data can be more protected and preserved. Use of internet can be done to broaden a market and reach new customers.So the technological factors cannot be ignored before reaching to a relevent decision.
3) Environmental factors:- The force of environmental considerations is growing stronger day by day. Public awareness of the effect of firm level decisions on society is spreading. The various community organizations, political parties are increasingly concerned about the effects of these decisions and will constantly push forward their points which may conflict with the purely economic viewpoint of the enterprise.
- How is decision making related to managerial economics?
- How technological factors influence decision making?
- Managers need to keep personal and economic logic before reaching to a particular decision. Comment on this statement.
- What are the environmental factors which influence managerial economics.
For more GD Topics: