50 HS 001 - Engineering
Economics and Financial
Accounting
Prepared by
Mr.B.Balaji
Assistant Professor/Mech
KSRCT
, Economics
Definition of Economics
• “Economics is the study man in the ordinary business of life.”
Definition of Micro Economics
• “It is the study of everything in individual units.”
• (Examples: Individual demand, Individual income)
Definition of Macro Economics
• “It is the study of everything in aggregate units”.
• (Examples: Market demand, Aggregate Income)
Definition of Managerial Economics
• “Application of Economics Principles in Business decision making”
, Nature of Managerial Economics
• It is considered as a study helpful in taking decisions of a
firm related to economy
• It is “micro –economic” in character i.e., related to a firm
• It is goal oriented-profit maximization by optimal use of
resource
, Scope of Managerial
Economics
• Demand Analysis and Forecasting – for making choice of
business i.e., what to produce and how much to produce
• Cost analysis – Choosing the factors of production
• Pricing Theories – to decide price in the market
• Profit analysis – to find break-even point
• Capital Budgeting – for investment decisions
• Competition in the market – for deciding business strategy
Economics and Financial
Accounting
Prepared by
Mr.B.Balaji
Assistant Professor/Mech
KSRCT
, Economics
Definition of Economics
• “Economics is the study man in the ordinary business of life.”
Definition of Micro Economics
• “It is the study of everything in individual units.”
• (Examples: Individual demand, Individual income)
Definition of Macro Economics
• “It is the study of everything in aggregate units”.
• (Examples: Market demand, Aggregate Income)
Definition of Managerial Economics
• “Application of Economics Principles in Business decision making”
, Nature of Managerial Economics
• It is considered as a study helpful in taking decisions of a
firm related to economy
• It is “micro –economic” in character i.e., related to a firm
• It is goal oriented-profit maximization by optimal use of
resource
, Scope of Managerial
Economics
• Demand Analysis and Forecasting – for making choice of
business i.e., what to produce and how much to produce
• Cost analysis – Choosing the factors of production
• Pricing Theories – to decide price in the market
• Profit analysis – to find break-even point
• Capital Budgeting – for investment decisions
• Competition in the market – for deciding business strategy
