Factors Influencing Managerial Economics

May 25 • Group Discussion • 12074 Views • 4 Comments on Factors Influencing Managerial Economics

Factors Influencing Managerial Economics

What is MANAGERIAL ECONOMICS?

Managerial economics is basically applied in decision making. Managers, at an initial, make a particular decision to get a desired surplus or to reach the desired objective.It is the control over the actions of human beings for the purpose of achieving pre- determined goal. Management itself is a decision making body. Decision making is essential for planning, analysing, actuating and controlling. It is basically applied to analyse business problems and forward planning of management. Over the years, managerial economics have solved various business related problems.
managerial economics

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.

Furthur, environmental factors can be any. as an example, skilled people are not available for completing the project. Sometimes the people available does not possess a right ability for completion of a particular project. Or there can be undesirable environmental changes such as disasters or economic shifts can affect the completion of a project. So, the leaders and managers need to alert for such unexpected environmental change.
  • 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.

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4 Responses to Factors Influencing Managerial Economics

  1. dhanashri nartam says:
    at

    Enter your any educational query or doubtsylabus of m
    com 1 semister advanc accounting

    Reply
  2. satish kumar n says:
    at

    impact of informational technology on managerial economics

    Reply
  3. Mitali Panda says:
    at

    Managerial economics always help to a firm to gain profits and also to a country to get good economical condition, this post has really described it very well. managerial economics has always helped india to make it influence on other country’s economical situation….

    Reply
  4. Sumit Mukherjee says:
    at

    There are lots of factors which influences the managerial economics. But before that we have to know about the managerial economy in details. The article provides the quality information regarding that. All the crucial issues such as planning, analysing, actuating and controlling are mentioned here with 3 vital factors….

    Reply

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