MGCR 293 Lecture 1: Managerial Economics Chapter 1

• School: McGill University
• Department: Management Core
• Course: MGCR 293
• Professor: Tariq Nizami

Document Summary

Market forces create both opportunities and constraints for business enterprises. Manager: a person who directs resources to achieve a stated goal. Purchases inputs used in the production of a firm"s output. Economics is the science of making decisions in the presence + scarce resources. Resources are anything used to produce a good or a service to achieve a goal. Managerial economics is the study of how to direct scarce resources in the way that most efficiently achieves a managerial goal. Managerial economics extracts from microeconomic theory those concepts + techniques that enable managers. It provides a systematic + logical way of analyzing business decisions which focuses on economic forces that shape both day to day short run decisions + long run planning decisions. Managerial economics focuses on the application of microeconomic theory to business problems. Focus in microeconomics is at the firm level or market level, whereas in managerial economics the focus is on managerial behavior.