Managerial Economics uses_____to help solve problems.
a. mathematical programming
b. Statistics
c. decision sciences
d. microeconomics
e. all of the above
Check this site.
http://en.wikipedia.org/wiki/Managerial_economics
can economic profit (not accounting profit) come from innovation or risk?
The answer is e. all of the above. Managerial Economics uses a combination of mathematical programming, statistics, decision sciences, and microeconomics to help solve problems. Each of these tools and approaches plays a role in analyzing and making decisions in the business context.
To understand why all of the above options are correct, let's break it down:
a. Mathematical programming: Managerial Economics often involves creating mathematical models to represent real-world situations and optimize decision-making. These models use mathematical techniques like linear programming, optimization, and game theory to solve problems and find the best solutions.
b. Statistics: Managerial Economics relies on statistical analysis to collect, organize, and interpret data. It uses statistical tools such as regression analysis, hypothesis testing, and forecasting to make informed decisions based on data-driven insights.
c. Decision sciences: This field involves utilizing various interdisciplinary approaches to support decision-making. Managerial Economics incorporates decision sciences techniques, such as risk analysis, operations research, and behavioral economics, to understand and predict the outcomes of alternative managerial choices.
d. Microeconomics: Managerial Economics is grounded in microeconomic principles and concepts. It applies economic theories at the individual, firm, and market level to analyze the behavior, performance, and decision-making of firms in various market settings.
By drawing upon these multiple disciplines and tools, Managerial Economics offers a holistic and comprehensive framework for problem-solving in the domain of business management.