Learn how to make sound, confident, and profitable business decisions by using managerial economics.
This topic will help you define managerial economics and its application to business decisions. The content will describe basic managerial economic theory and provide a framework for problem solving. Afterwards, you will be able to identify how managerial economics can be used to identify, and review business decisions. You will be able to use econometric modeling to aide in decision making.
Time and capital are scarce resources. How a manager deploys these resources can be the difference between success and failure. Managers are often confronted with issues and are required to make decisions with incomplete information. For example, should I introduce a new feature to an existing product, or should I introduce a brand new product? Is my current production method achieving my goals? Should I modify my supply chain or produce in house? Managerial economics provide a logical framework to analyze these critical decisions. Econometric modeling techniques are not limited to for profit entities, and can be used effectively by managers of not-for-profit entities. This topic will define managerial economics and provide a framework to analyze key decisions. Managers that do not have these tools often underperform their peers.