Role Of Managerial Economics

INTRODUCTION When looking at managerial economics and how it affects a business many things are to be considered, many factors are present that need to be assessed. After all, each business is unique in what they do, what they have to offer consumers and how they manage that demand; all this is different from company to company. Managerial economics is the “economic analysis required for various concepts such as demand, profit, cost, and competition” (Business Firms and Decisions, n.d.). Within this paper, we will discuss the different tools that companies use in order to arrive at solutions that best aid in achieving superlative results. We will explore such topics as the roles of prices, profit maximization, substitution input in production, and how these concepts apply to institutions. Can these methods be applied to bigger institutions like the military or a city hall? Can an institution operate inefficiently in a market? Can an organization afford to waste resources, and if so, at what cost and for how long.?
THE ROLES OF PRICE, PROFIT MAXIMIZATION, AND SUBSTITUTION INPUT There are many tools that a company can use to improve their profits, there are different ways that companies can obtain new consumers, improve revenue, build systematic relationships in regards to the cost of manufacturing a

At first glance, one might say that these methodologies are universal and can be applied to any type of institution. Yet, when observing an organization that is not a for-profit company how would these methods apply? An example of this is the military and or city hall, in any city. Neither organizations are designed to make a profit yet, both institutions play a major role in how different manufacturers and companies tailor their products to meet the institutional needs of these