Managerial Economics can be defined as amalgamation of economic theory with business practices so as to ease decision-making and future planning by management. Managerial Economics assists the managers of a firm in a rational solution of obstacles faced in the firm s activities. It makes use of economic theory and concepts. It helps in formulating logical managerial decisions.

Managerial economics is a stream of management studies that emphasizes primarily solving business problems and decision-making by applying the theories and principles of microeconomics and macroeconomics. It is a specialized stream dealing with an organization s internal issues by using various economic theories. Economics is an indispensable part of any business. All the business assumptions, forecasting, and investments are derived from this single concept. This is managerial economics meaning in a nutshell.