MGCR 293 Chapter Notes -Microeconomics, Demand Curve, Taipei Metro
9 Jan 2015
School
Department
Course
Professor
Document Summary
The main task of manager is to make good decisions. Those who gain an understanding of the complex world will increase the value of their decisions at personal and organisational level. Managerial economics uses formal models to analyse managerial actions and their effect on the firm performance. We use these models to shed light on businesses concepts such as costs, demand, profit, competition, pricing contrary to popular beliefs managerial economics differs significantly from microeconomics. The focus in microeconomics is at the firm level (market level) while managerial economics the focus is on the managerial behaviour. Managerial economics prescribes behaviour, whereas the micro describes the environment: the theory of the firm. Managers work within a larger organisation and ultimately determine its performance. To understand the behavioural world of managers, we must account for the behaviour of firms. Although management styles differ greatly there is little variance in the goals of managers.
