RELATION OF MANAGERIAL ECONOMICS WITH OTHER DISCIPLINE

Ø  RELATION OF MANAGERIAL ECONOMICS WITH OTHER DISCIPLINE
BUSINESS ECONOMICS/MANAGERIAL ECONOMICS

Ø  SHASHI AGGARWAL ECONOMICS AND LAW CLASSES

• MANAGERIAL ECONOMICS AND TRADITIONAL ECONOMICS

1. MANAGERIAL ECONOMICS IS VIEWED AS SPECIAL BRANCH OF ECONOMICS
2. APPLICATION OF ECONOMIC THEORY TO DECISION MAKING
3. TRADITIONAL ECONOMICS CONSISTS OF :-
4. MICRO ECONOMICS:-KNOWN AS PRICE THEORY, THE MAIN SOURCE OF CONCEPTS AND ANALYTICAL TOOL FOR MANAGERIAL ECONOMICS
5. MACRO ECONOMICS:-THE MAIN CONTRIBUTION IS IN THE FIELD OF FORECASTING. THE MODERN THEORY OF INCOME ,EMPLOYMENT AND TRADE CYCLE HAS GREAT IMPLICATIONS.

• MANAGERIAL ECONOMICS WITH STATISTICS

1. STATISTICS PROVIDE THE BASIS FOR EMPIRICAL TESTING OF THE THEORY AND HELP IN ACCEPTANCE OF GENERALIZATION
2. PROVIDE THE MOST USEFUL AND RELIABLE DATA FOR BUSINESS DECISION MAKING
3. USEFUL MEASURE FOR MEASUREMENT FOR FUNCTIONAL RELATIONSHIP
4. THEORY OF PROBABILITY UPON WHICH STATISTICAL METHODS ARE BASED PROVIDES THE LOGIC FOR DEALING WITH UNCERTAINTY IN DECISION MAKING
5. MEASURES OF CENTRAL TENDENCY, MEASURES OF DISPERSION, CORRELATION AND REGRESSION ARE WIDELY USED.

• MANAGERIAL ECONOMICS WITH MATHEMATICS

1. AS MANAGERIAL ECONOMICS IS BOTH CONCEPTUAL AND METRICAL
2. MATHEMATICS HELPS IN ESTIMATING VARIOUS ECONOMIC RELATIONSHIPS, PREDICTING RELEVANT ECONOMIC QUANTITIES AND USING THEM IN DECISION MAKING AND FORWARD PLANNING.
3. GEOMETRY,ALGEBRA,CALCULUS ARE EXTENSIVELY USED
4. OPERATION RESEARCH IS USED IN ESTIMATING DEMAND AND DETERMINING THE PRICES OF THE SOLUTIONS.

• MANAGERIAL ECONOMICS AND ACCOUNTING

1. CLOSELY INTER RELATED
2. ACCOUNTING MEANS THE RECORDING OF FINANCIAL OPERATIONS OF A BUSINESS FIRM
3. A BUSINESS MANAGER NEEDS A LOT OF ACCOUNTING INFORMATION DATA FOR LOGICAL ANALYSIS IN DECISION MAKING AND POLICY FORMULATIONS
4. MANAGEMENT ACCOUNTING HAS BEEN DEVELOPED TO CORRECT MANAGERIAL DECISION MAKING

• MANAGERIAL ECONOMICS AND OPERATION RESEARCH

1. OPERATION RESEARCH IS THE APPLICATION OF MATHEMATICAL TECHNIQUES TO SOLVING BUSINESS PROBLEMS AND ALSO CONCERNED WITH EFFICIENT USE OF SCARCE RESOURCES.

1. MANAGERIAL ECONOMICS USES THE LOGIC OF ECONOMICS,MATHEMATICS AND STATISTICS FOR UNDERTAKING EFFECTIVE DECISIONS WHILE OPERATIONAL RESEARCH TECHNIQUES BASED ON THESE WAY OF THINKING ARE BEING USED TO SOLVE DECISION MAKING
2. MANAGERIAL ECONOMIC IS AN ACADEMIC SUBJECT FOCUSES ON UNDERSTANDING AND ANALYZING PROBLEMS AND DECISION MAKING. OPERATIONAL RESEARCH IS FUNCTIONAL ACTIVITY AND IS A TOOL FOR MANAGERIAL ECONOMIST.

• MANAGERIAL ECONOMICS AND PSYCHOLOGY AND SOCIOLOGY

1. BOTH PSYCHOLOGY AND SOCIOLOGY PROVIDE THE BASIS OF BEHAVIORAL THEORY OF THE FIRM AS GIVEN BY SIMON,CYERT AND MARCH AND WILLIAMSON.
2. THE STUDY OF WHAT MOTIVATES AN INDIVIDUAL TO WORK AND THE STUDY OF THE GROUP BEHAVIOR IS ESSENTIAL FOR DECISION MAKING

• MANAGERIAL ECONOMICS AND DECISION MAKING
• DECISION MAKING MEANS THE PROCESS OF SELECTING THE SUITABLE ACTION AMONG SEVERAL ALTERNATIVE COURSES OF ACTIONS. LIKE

a)       WHAT PRODUCT TO BE MANUFACTURED

b)       QUANTITY AND QUALITY

c)        PRODUCTION TECHNIQUES

d)       PRICING POLICY

o    MAIN TYPES OF DECISION ARE PRICE OUTPUT DECISION ,DEMAND DECISION, CHOICE OF TECHNIQUE OF PRODUCTIONS. ADVERTISING DECISIONS, LONG RUN PRODUCTION DECISIONS, INVESTMENT DECISIONS ETC.

• MANAGERIAL ECONOMICS AND FORWARD PLANNING
• IT MEANS PREPARING PERSPECTIVE PLAN OF DEVELOPMENT OF THE ORGANIZATION. THIS INVOLVES CAPITAL BUDGETING, OBTAINING LAND FOR FUTURE EXPANSION.
• MANAGERIAL ECONOMICS APPLIES MULTIDISCIPLINARY APPROACH, UTILIZING ANALYTICAL AND DECISION MAKING TOOLS DERIVED FROM ACCOUNTING,FINANCE,MARKETING,ADMINISTRATIVE,ECONOMIC THEORY ETC