A major part of managerial decision-making depends on accurate estimates of demand. Scope; Nature of Managerial Economics. In other words managerial economics is economics applied to the analysis of business problems and decision making. In general, the Scope of Managerial Economics comprehends all those economic concepts, theories and tools of analysis which can be used to analyse the business environment and to find solutions to practical business problems. Let us read about the nature of this concept in the following points: Art and Science: Managerial economics requires a lot of logical thinking and creative skills for decision making or problem-solving. When exploring the scope of managerial economics, there are four primary factors that … Economics is a social science, which studies human behaviour in relation to optimizing allocation of available resources to achieve the given ends. Economics … Scope of Managerial Economics. Brighman and Pappas define managerial economics as,” the application of economic theory and methodology to business administration practice”. The flow of this study of managerial economics is always working to solve the problems encountered in the business by applying the principles and principles of microeconomics. This is a special stream of problem-solving of various economic theories. The nature and scope of managerial economics includes taking a managerial problem and suggesting a course of action to solve the problem. Managerial Economics is a great stream of management studies. It is also considered to be a stream of science by some … managerial economics and the scope of managerial economics. Demand Analysis; A business firm is an economic organization which is engaged in transforming productive resources into goods that are to be sold in the market. Naturally, a manager decides how to allocate resources to their respective uses within the firm, while as stated above, the resource allocation decision outside the firm is primarily done through the market. A forecast of future sales serves as a guide to management for preparing production schedules and … Scope of managerial economics. To know more about managerial economics, we must know about its various characteristics. Nature and Scope of Managerial Economics 1. Scopes of Managerial Economics. The problems include anything related to the managerial process of a business, such as account management, production and inventory or sales and marketing.