Relationship With Other Disciplines:-

RELATIONSHIP WITH OTHER DISCIPLINES:-

Many new subjects have evaded in recent year due to the interaction among basic disciplines. While there are many loch new abject in natural & local licenses. Managerial economics can be taken as the beet couple of lunch a phenomenon among local licenses . Hence it is necessary to trace its roots & relationship with other disciplines.a).Relationship with economics:- Economic has two aspects.

1). Positive economics:- Positive economic M.E depends upon positive economics.

2). Normative Economic:- N.E is deals with what ought to be done M.E is related to normative economic since the firm has to give recognition of what is good our bad form the point of view of society at large.The relationship b/w M.E economics theory to may be viewed from the point of view of the approached to the abject viz

1). Micro behaviors

1). Micro Economic & 2) Macro Economic Micro Economics is the study of the economic behavior of individuals M.E is Micro Economic Theory deals with the analyies of national income the level of Employment general level Consumption & investment , public finance etc

b) Management theory and akin:- M.E. has been influenced by the development in management theory & acing techniques R.M coyer & J.E have elaborated it further to give a satiating model where profit maximization is one among several goals the firm keeps the focus of asking with in the firm is tats changing from the concept of story keeping to that of managerial decision making this has resulted in a new specialized area of study called managerial asking.

c) Managerial economic for managerial The use of mathematics is signification for managerial economics optimum use of recourses the major problem of firm is how to minimize cost how to minimize profit or how to optimize sales mathematical concept & techniques are widely used in economic logic to solve there problem & decision making & forward planning . geometry algebra & calculas are the major branch of mathematics which are of use in M.E main thing mathematics like logarithms input out put deferments act are used game theory inventory models use in M.E application d) M.E & statistics:-

M.E needs the tools satisfies in more than one way A Successful businessmen must correctly established the demand for his product. He should be Abe in incomes on demand only then can abject his out put this is a basically for decision making & use in collecting data & analyzing them to help in the decision making process.e) M.E operation Research :- This is major concern of both M.E & O.R the development of techniques concepts game theory programming inventory models this is concepts with the comment problem arising out the men machines materials & money & it helps M.E in the field of products development material inventory control quality control marketing demand analysis thus linear programming technique developed by George B. denting in 1947 has proved to be a useful tool for the M.E in mating of redacting transportation with & allocation of purchase among different supplier f) M.E & the theory of decision making :- The theory of decision making is a new field of knower growth in second half of his century. Most of the economic theories explain a single goal for the consumer i.e.. Profit maximization for the firm it is developed to explain multiplicity of goals & lot of concertainity the theory decision making is more prostration than negative economic theories.g) M.E & Computer Science :- Computer have changed the way the functioned & economic or business activity is no exception computer are used in data & ask maintenance inventory & stock control & happy & demand prediction in tact computer of business activities on a large scale has reduced the work load of the management personnel M.E bridges the goop abstract theory & management practices with the help of other allied science this has been the secret of its because as practices science unlike the mainstream of economic theory.

Problems of Economic:-

The economic problem emerges because our desire for goods and services to consume is greater than our ability to produce those goods and services. The demand for goods & services from human wants. There are 3 types of human wants.

1) Biological wants are for the goods and services melded to human life these are ford shelter and clothing these goods are after called necessities.

2) Cultural wants for are for goods and services beyond enmities in orders to maintain the socially accepted standard of living the idea of a standard of living will vary with time & place .

3) Demon traction wants are for goods and services beyond convenes thanks to moron tale communication we all know about the lifestyles of the rich & famous and would not monitor our self there goods and services are called luxuries.

Economic as that human want posse a critical characteristics1).Human Wants for Goods & Services to Consumer Are In The Aggregate Insatiable:-We lave never seen any human society enjoying wants& actuation including united states today sadly the developed nations of the world after can not ever provide for life sustaining biological wants.The supply of good & services results from the production proem in production various are brought to gather and input and combined to create goods & services these input are clarified into three factors of production.Land is natural recourses or endowment from nature the payment for the use of land is called rents & royalties.

Labor is all human effort physical & mental used in production the payment for labor are wages and salaries.

Capital is all goods used to produce other goods and services. Capital is also produced disables the payment for capital are interest for debt capital and profits for equity capital.The factors of production are versatile and may be combined indefinite properties to produce the since thing thru U.S is capital abundant used machinery inters for farming china is labor abundant and used people intensively for farming.

2.The wants of a society for goods and services to consumer will always exceed the ability of that society to produce goods and services This problem Posen sessions policy junction all nations the advanced as well as less developed it is after a cruel dilemma for their economic are after hard proved events to punish the biological necessities.

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