Currency Wars and the Making of the Next Financial Crisis in the Global Economy
February 12, 2025
There is a general saying in the business world, “What cannot be measured cannot be managed!” This is true of inflation as well. Hence, governments are supposed to constantly measure the amount of inflation in the economy. The idea is to have a control chart approach to keep inflation in check. This means that the […]
Most developed countries in the world have a minimum wage act. This means that there exist legislations in those countries which make it illegal to hire anybody to do any kind of work unless they are paid at least a certain stipulated amount per hour of their labor. These laws have created immense debates as […]
Why Wannabe Influencers and Creators Need a Reality Check on Social Media The rise of the Creator Economy in recent years has made some social media influencers very rich. Attracted by their successes, Millions of so-called Creators, who create everything from YouTube/TikTok videos, to Instagram reels, and LinkedIn articles, not to leave out Facebook and […]
Fossil fuels are considered to be the biggest environmental hazards of our time. The biggest objective of several global organizations is to reduce the use of these fossil fuels and replace them with something more organic. This is where biofuels can help. Governments all over the world are giving subsidies to biofuels. Many government agencies […]
How the US and Canada Are In the “Pole” Position for the Gig Economy/Workers The rise of the Gig Economy worldwide is one of the more notable workforce trends over the last decade or so. More so, in the United States and Canada, which are regarded as pioneers in terms of categorizing and classifying the […]
Managerial Economics is basically a blend of Economics and Management. Two branches of economics i.e. micro economics and macro economics are the major contributors to managerial economics.
Micro Economics is the study of the behaviour of individual consumers and firms whereas microeconomics is the study of economy as a whole.
All the firms operating in the market have to take under consideration the constituent of the economic environment for its proper functioning. This economic environment is nothing but the Micro economics elements.
Micro Economics is a broader concept as compare to Managerial Economics. Micro Economics forms the foundation of managerial economics. Almost all the concepts of Managerial Economics are the perceptions of Micro Economics concepts.
Managerial economics can be perceived as an applied Micro Economics. Demand Analysis and Forecasting, Theory of Price, Theory of Revenue and Cost, Theory of Supply and Production are major bare bones of Micro Economics that underpins the Managerial Economics. Managerial Economics applies the theories of Micro Economics to resolve the issues of the organization and for decision making.
All Managers want to carry out their function of decision making with maximum efficiency. Their business planning can be effectively planned and performed with comprehensive knowledge and understanding of micro economic concept and its applications.
Optimum decision making to achieve the objective of the organisation i.e. for profit maximizing or for cost minimizing, is possible with proper compliance of micro economic know how, regardless of the technological constraints and given market conditions. Micro Economic Analysis is important as it is applied to day to day dilemma and concerns.
The reliance of Managerial Economics on Micro Economics is made clearer in the points below:
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