How is Managerial Economics related to different disciplines?
The relationship between the Managerial Economics and other disciples may be known from the fact that it helps the business management students to identify the best possible alternative in the difficult situation. It provides the basis for a well formed foundation for the identification and so that the students may relate the various economic fundamentals with other fields of studies as well.
Managerial Economics being one of the parts of microeconomics, therefore a direct relationship may be established or created with the Micro-economic Theory. Various concepts and tools for analysis of the situation are provided by the Micro-economic Theory to the students and managerial economists who then take a rational decision. Theories like price theory, demand and supply concepts and various theories of the market structure, etc. Such theories help a great deal in solving the real world day-to-day issues faced by the management students.
A relationship may also be seen between Managerial Economics integration and Operations Research. It helps the management students to find out the best available possibilities from the various set of possibilities available with them. As decision making is considered as one of the major parts of Managerial Economics thus Linear programming aid is provided by operations research for the facilitation of the decision making objective of the managers. This further helps in determining the appropriate distribution pattern for various commodities.
Association between Managerial Economics and statistics should not be overlooked upon. Statistics may provide for better decisions relating to demand and cost functions, production, sales and distribution of products can be taken in a well planned manner. Therefore it may be said that even a statistics student with sound knowledge can become a good manager.
The managers are responsible for taking a lot of decisions which involve a lot of choice and uncertainness because of which the Theory of Decision Making can come into picture. This theory provides for undertaking multitasking in the form of handling goals with uncertainty attached in the real world, which allows the students of management a wide scope of experience and enhances their capabilities as a leader as well.