1. Managerial economics as a subject gained popularity in the USA after the publication of the book “Managerial Economics” by Joel Dean in 1951. Managerial economics generally refers to the integration of economic theory with business practice. Economics provides tools, managerial managerial economics applies these tools to the management of business. In simple terms, managerial economics means the application of economic theory to the problem of management.

2. DEFINITION According to Christoper Savage and John R. Small-“ Managerial economics is concerned with business efficiency”. According to W.W.Haynes- “Managerial economics is the study of the allocation of resources available to a firm of other unit of management among the activites of that unit”. According to D.C. Hague – “ Managerial economics as a fundamental academic subject which seeks to understand and analyzse the problems of business decision making”.

3. SUBJECT MATTER OF MANAGERIAL ECONOMICS Demand analysis and forecasting Cost and production analysis Inventory management Advertising Pricing decision, policies and practices Profit management Capital management

4. ROLE OF MANAGERIAL ECONOMIST IN BUSINESS DECISION MAKING Production decisions Inventory decision Cost decision Marketing Decisions Investment Decisions Personnel Decisions