MANAGERIAL ECONOMICS: MICRO-MACROECONOMICS

Managerial economics are defined as the application of economic method to the managerial decision-making process, recognized like a fundamental part of any business or management course. (Wilkinson, 2005) According of International school of management it is a branch of economics that applies microeconomic analysis to specific business decisions (International School of Management, 2012).

Also, Spencer and Siegelman (1959) explained us that the managerial economics are the integration of economic theory with business practice with the purpose of facilitating decision making and forward planning by management (Spencer & Siegelman, 1964), coinciding with the professors Edwards and Daniel (2006), which explains that the intention of managerial economics is to apply a series of basic economics principles to decision making process within any company. (Edwards & Daniel, 2006).

Microeconomic is defined as the study of decisions that individual and business make, it is focus on supply and demand, that determine the price levels in the economic (Investopedia ULC), the role that the consumer and business play in the economic, and how these groups make decisions; in the same way, macroeconomic study the behavior of the economy as a whole, it try to forecast economic condition to help anyone, consumer or governments take a great decisions.

Both, microeconomics and macroeconomics help the manager in the decisions making process because for example, the manager wants to know where he can expand his production,

where the consumer have enough money to buy the products, all these information he can obtained by macroeconomics studies; in the other hand, the manager needs to know what is the competition they face in the market, because the more competition a business faces, the less leeway it has in terms of pricing, they get these information with microeconomic studies, both are mutually dependent, and together develop the strategy for the overall growth of any company. (Investopedia ULC).

            Microeconomic and macro economics are the fundamental tools to be learnt, in order to the manager can understand how the economic system is administered, and sustained

 Bibliography

Edwards, S., & Daniel, K. (2006). anderson.ucla.edu. Retrieved June 21, 2012, from Management 405: Managerial Economics: http://www.anderson.ucla.edu/faculty/sebastian.edwards/MGMT405_Fall06.pdf

International School of Management. (2012). ism.edu. Retrieved June 21, 2012, from http://www.ism.edu/component/option,com_glossary/Itemid,15/tterm,Managerial%20economics

Investopedia ULC. (n.d.). investopedia.com. Retrieved june 22, 2012, from http://www.investopedia.com/ask/answers/110.asp

Spencer, M. H., & Siegelman, L. (1964). Managerial Economic. Decision making and forward planning. Illinois: R.D. Irwin.

Wilkinson, N. (2005). Manangerial Economic a problem-solving approach. London: Cambidge.