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.

Managerial economics, also colloquially known as business economics. It is a special branch of economics. This branch of economics deals with the function of microeconomic analysis to decision-making techniques of businesses and management units. Managerial economics links economic theory and pragmatic economics. Managerial economics is intended to bridge the gap between theory and practice .