BUS 207 Chapter Notes - Chapter 1: Historical Cost, Switching Barriers, Customer Switching
28 May 2011
School
Department
Course
Professor
Document Summary
Managerial economics provides useful insights into every facet of the business and nonbusiness world in which we live-including household decision making. A manager is a person who directs resources to achieve a stated goal. A manager generally has responsibility for his or her own actions as well as for the actions of individuals, machines, and other inputs under the manger"s control. Economics is a science of making decisions in a presence of scare resource. Economic decisions thus involve the allocation of scare resources, and a manger"s task is to allocate the scare resources so as to best meet the manager"s goals. Managerial economics, therefore, is a study of how to direct scare resource in a way that most efficiently achieves a managerial goal. The key to making sound decisions is to know what information is needed to make an informed decision and then to collect and process the data.
