Meaning of Business Economics
- Business Economics, also referredtoas Managerial Economics, generally refers tothe integration of economic theory with business practice. While the theories of Economics provide the tools which explain various concepts such as demand, supply, costs, price, competition etc.,
- Business Economics applies these tools in the process of business decision making. Thus, Business Economics comprises of that part of economic knowledge, logic, theories and analytical tools that are used for rational business decision making.
- In brief, it is Applied Economics that fills the gap between economic theory and business practice.
- Business Economics has close connection with Economic theory (Micro as well as Macro-Economics), Operations Research, Statistics, Mathematics and the Theory of Decision-Making. A professional business economist has to integrate the concept and methods from all these disciplines in order to understand and analyse practical managerial problems.
- Business Economics is not only valuable to business decision makers, but also useful for managers of ‘not-for-profit’ organisations.
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