Managerial Economics Term Paper by Jay Writtings LLC

This paper explains that managerial economics uses basic economic theories and methods to improve managerial decisions by enabling managers to recognize how economic forces affect an organization's behavior. The paper stresses that, when planning and making policy decisions, managers must understand the importance of the concept of supply and demand in terms of the significance of price and the estimation of demand to determine the opportunity costs of overproduction. The paper underscores the need to know the employees' perception of demand as well as the consumers' sensitivity to price of the market in order to increase the accuracy of prediction.

Table of Contents:
Intro
Background
Objectives
Review of Literature
Findings and Analysis
The Opportunity Cost of Managerial Estimation
Measuring Consumer Demand
Managing Knowledge for Accurate Estimation
Using the Employees for Accuracy
The Importance of Price
Conclusion