Managerial economics can best be defined as the:
A) macroeconomics and microeconomics for managers.
B) study of economic incentives on consumer behavior and demand.
C) analysis of the labor market through the behavior of workers and managers.
D) analysis of major management decisions using economic tools.
E) study of the strategic interaction between firms in a market.

Question

Quizplus · Accepted Answer

Managerial economics is the application of economic principles and tools to decision-making in a business or managerial context. It involves the analysis of important business decisions using economic concepts and techniques, such as demand analysis, cost analysis, and market structure analysis. Managerial economics helps business managers make informed decisions by providing a framework for systematically analyzing and evaluating alternatives. Therefore, the best choice is D, which states that managerial economics is the analysis of major management decisions using economic tools.

Managerial Economics Can Best Be Defined as The