Managerial economics:
A)is not applicable to the not-for-profit sector.
B)helps managers identify choice alternatives.
C)helps managers identify organization goals.
D)cannot be used to identify the appropriate scale of operation.

Question

Quizplus · Accepted Answer

Managerial economics helps managers identify choice alternatives by analyzing economic data and making informed decisions based on that analysis. It also provides a framework for assessing and comparing different strategies and their potential outcomes. While managerial economics is often applied in the for-profit sector, it can also be useful in the not-for-profit sector to help organizations make efficient use of their resources to achieve their goals. Additionally, managerial economics can be used to determine the appropriate scale of operation by analyzing data on fixed and variable costs, revenue potential, and market demand. Managerial economics helps managers identify various choice alternatives and their consequences. It is a tool that aids decision-making and enables managers to select the best course of action to achieve the organization's goals. Option A is incorrect because while not-for-profit sector's motive is different, managerial economics can still be applied to it. Option C is incorrect because identifying organization goals is beyond the scope of managerial economics. Option D is incorrect because identifying the appropriate scale of operation is one of the key applications of managerial economics.

Managerial Economics