Managerial Economics Essay

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Managerial Economics In order for any company to succeed there are a lot of things that require to be done. Looking at McDonalds’s, you will realize that the management has put a lot efforts to ensure that the company has incorporated managerial economics in its operation. This is one of the reasons why the company has attained great success that most other companies have not been able to. There are different topics within a company that can determine how managerial economics is incorporated in a company. Spear Company limited is a company that deals with production of clothes and it has been operation since 1990. The company has borrowed a lot of its managerial issues from McDonalds’s. To bring this issues well let us look at how the company …show more content…

This is one of the risks that the company usually takes very carefully because it takes a lot of efforts, time and money to build again if it is lost. It is very important to understand all the six topics discussed above, because they are of great importance in managerial economics. Understanding all the issues involved in the topics makes it easy to manage all the aspects involved of running the business. It will be possible to take manage risks and ensure that they do not bring any negative effects that might affect the company in a great way. It will also be possible to carry all other management in an effective way making the company to attain competitive edge over others (Rowe, 2001). Managerial economics fits into the topics discussed because this is an area that gives explanation on how resources such as money, technology, land, and labor. It looks on how all these resources should be allocated in a more efficient manner. By understanding managerial economics it is possible to make the right decision regarding all the above topics. The managers have the ability to apply managerial economics to make strategies and solve critical business problems (Rowe,

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