Definition of Managerial Economics Managerial economics is a branch of economics that applies economic theories, principles, and analytical tools to facilitate business decision-making. It focuses on helping managers make informed and efficient choices by providing a structured framework to analyze business problems, optimize the allocation of scarce resources, and achieve organizational goals. Essentially, it bridges the gap between abstract economic theory and practical management, enabling businesses to navigate complex market environments and enhance their competitiveness. In simpler terms, managerial economics equips managers with data-driven insights to answer questions like: How should we price our product? How much should we produce? Should we invest in this project? It combines qualitative reasoning with quantitative techniques, such as statistical models and forecasting, to guide optimal decision-making under conditions of uncertainty and limited resources. Scope of Manageri...