Definition & Meaning - Introduction to Business Economics, Business Economics & Finance | Business Economics & Finance - B Com PDF Download

Definitions of Business Economics or Managerial Economics

According to E. F. Brigham and J. L. Pappas, "Managerial Economics is the application of Economic theory and methodology to business administration practise."

According to McNair and Meriam, "Managerial Economics consists of the use of Economic modes of thought to analyse business situations."

According to M. H. Spencer and L. Siegelman, "Managerial Economics is the integration of economic theory with business practise for the purpose of facilitating decision making and forward planning."

According to Hauge, "Managerial Economics is concerned with using logic of economics, mathematics & statistics to provide effective ways of thinking about business decision problems."

According to Joel Dean, "The purpose of Managerial Economics is to show how economic analysis can be used in formulating business policies."

Meaning of Business Economics or Managerial Economics

Business Economics or Managerial Economics generally refers to the integration of economics theories with business practises. Economics provides various conceptual tools like - Demand, Supply, Price, Competition, etc. Business economics applies these tools to the management of business. In this sense, business economics also known as applied economics.

Business Economics is the application of principles and theories of economics in practise to run successfully the business. Everyday business manager has to face different problems, while running the business. They would be solved with the help of economic theories. Managers integrates the economic theories with the business practises and takes decisions as well as plans the activities of  business.