Question

In a paragraph what will I learn in the managerial economics class?

Answer 1

Managerial economics:

This is the use of economic models and theories those are required to formulate business strategies for problem solving. Examples of such models are free-market model where supply and demand movements establish the market price of a product or service, business cycle model that indicates various stages and duration of an economy (expansion, peak, recession, and trough) for understanding the exact time of capital investment by a business (this actually happens in “expansion” stage), and opportunity cost model that requires for making decision of trade (lower opportunity cost of a product gives the product “comparative advantage” and export opportunity).