Man­age­r­ial eco­nom­ics is often con­fused with tra­di­tional eco­nom­ics, but its pur­pose is dif­fer­ent. Tra­di­tional eco­nom­ics explains how an econ­omy works; man­age­r­ial eco­nom­ics uses those expla­na­tions to help a par­tic­u­lar firm decide what to do. Its nature is eas­i­est to see through its main fea­tures.

Micro­eco­nomic in focus

It deals with the prob­lems of one firm, such as its costs, prices and out­put, rather than with the econ­omy as a whole.

Prag­matic

It is a prac­ti­cal sub­ject. Eco­nomic prin­ci­ples are applied directly to deci­sion-mak­ing and prob­lem-solv­ing.

Mul­ti­dis­ci­pli­nary

It bor­rows from many fields: busi­ness, man­age­ment, account­ing, sta­tis­tics, finance and math­e­mat­ics.

Uses macro­eco­nom­ics too

Every firm works inside a wider envi­ron­ment shaped by legal, polit­i­cal, global, social, eco­nomic, tech­no­log­i­cal, com­pet­i­tive and demo­graphic forces. Macro­eco­nom­ics helps the man­ager under­stand these forces and pre­pare for the threats and oppor­tu­ni­ties they bring.

Man­age­ment-ori­ented

Above all, it trains man­agers to take sound deci­sions in dif­fi­cult sit­u­a­tions.