Managerial Economics

Managerial economics is a distinctive branch of economics which deals with the economic problems of firms and industries and their relationship with society. There are several basic issues on which the producer will be making decisions such as what commodities it should produce, what should be the output level of each, what type of technology it should adopt, where it should produce the goods, what should be the size of the factory, what price it should charge, how much wages it should be paid, and how much it should be spent on advertisement. All such decisions endeavor to study managerial economics.