0Managerial economics is concerned with economic behaviour of the firm.Teh main focus in managerial economics is to find an optimal solution to a given managerial problem.Main areas where application of principles and concept of managerial economics are made is as below:
1. Demand decisions and demand forecasting.
2. Input output decisions (under production function (Laws of returns to scale))
3.Cost classification and behaviour and cost analysis
4.Price output decisions
5. Profit -related decisions and theories of profit
6.Investment decision and capital budgeting (keeping time value concept)
7. Economic forecasting and forward planning.
