What Is Managerial Economics?

Managerial economics is the study of ways of managing limited resources to accomplish a goal most efficiently.

Following are some examples of topics studied under managerial economics:

• Where will the inputs of production come from? How many workers does the firm need to hire? How many machines does the firm need to get? Will the firm rent them or purchase them?
• What will the firm produce, exactly? Should the firm specialize in producing one type of good or various types?
• How many outputs will the firm produce? What will be the price of outputs?