What are the differences between managerial economics and traditional economics ?Ripunjay Tiwari
Ans. The differences between managerial economics and traditional
economics are as follows –
(i) Managerial economics studies the activities of an individual firm. Its analysis of problems is micro in nature. But economics analyses problems both from micro and macro point of views.
(ii) Economics deals mainly with the theoretical aspect only whereas managerial economics deals with the practical aspect.
(iii) Economics studies human behaviour on the basis of certain assumptions but these assumptions sometimes do not hold good. Managerial economics is concerned with the study of production, cost, profit, etc of business firms.
(iv) Economics is both positive and normative science but the managerial economics is essentially normative in nature.
(v) The scope of economics is wider than managerial economics.
(vi) Under economics we study only the economic aspect of the problems but under managerial economics we have to study both the economic and non-economic aspects of the problems.