Introduction          Introduction         Introduction          Introduction         

The concept of Managerial Economics applies principles of economic theory and methods to business and administrative decision making. It prescribes rules for improving managerial decisions and also helps managers recognize how economic forces affect organizations and describe the economic consequences of managerial behavior.  It links traditional economics with the decision sciences to develop vital tools for managerial decision – making, managerial economics identifies ways to efficiently achieve both business profit and nonprofit goals.

 Therefore, managerial economics is relevant to the management of nonbusiness, nonprofit organization such as government agencies, cooperatives, schools, hospitals, museums, and similar institutions. However, this training material focuses primarily on business applications.