A managerial economist helps the management by using his analytical skills and highly developed techniques in solving complex issues of successful decision-making and future advanced planning.
The role of managerial economist can be summarized as follows:
- He studies the economic patterns at macro-level and analysis its significance to the specific firm he is working in.
- He has to consistently examine the probabilities of transforming an ever-changing economic environment into profitable business avenues.
- He assists the business planning process of a firm.
- He also carries cost-benefit analysis.
- He assists the management in the decisions pertaining to internal functioning of a firm such as changes in price, investment plans, type of goods /services to be produced, inputs to be used, techniques of production to be employed, expansion/ contraction of firm, allocation of capital, location of new plants, quantity of output to be produced, replacement of plant equipment, sales forecasting, inventory forecasting, etc.