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Lesson - 1 Business Economics- Meaning, Nature, Scope and ...

Lesson - 1 Business Economics- Meaning, Nature, Scope and significance Introduction and meaning : (Author : Dr. Khanchi) Business Economics, also called Managerial Economics, is the application of economic theory and methodology to Business . Business involves decision-making. Decision making means the process of selecting one out of two or more alternative courses of action. The question of choice arises because the basic resources such as capital, land, labour and management are limited and can be employed in alternative uses. The decision-making function thus becomes one of making choice and taking decisions that will provide the most efficient means of attaining a desired end, say, profit maximation.

Different aspects of business need attention of the chief executive. He ... economic seeks to establish rules which help business firms attain their goals, which indeed is also the essence of the word normative. However, if the firms ... shall examine these two approaches to the study of consumer ˇs equilibrium in greater defait.

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