Management Economics: Definition, Range and Relevance

Abstract

A sound business choice is grounded on economic theory. Sound economic reasoning is helpful for any manager of a business, whether they are in charge of production and operations, marketing, finance, or corporate strategy, despite the common misconception that only a small group of academicians and policy analysts who call themselves economists find the field of economics to be of practical relevance. In addition to improving judgement, economics also provides a shared lexicon and framework for understanding and discussing events both inside and between businesses and their external environments.