Managerial economics is a stream of management studies which emphasises solving business problems and decision-making by applying the theories and principles of microeconomics and macroeconomics. It is a specialised stream dealing with the organisation s internal issues by using various economic theories.

Managerial economics is the application of economic theory and methodology to decision-making problems faced by both public and private institutions. Managerial economics studies the application of the principles, techniques and concepts of economics to managerial problems of business and industrial enterprises. The term is used interchangeably with micro economics, macro economics, monetary economics.