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Managerial economics can be defined as an area of economics concerned with the application of the economic concepts to make a rational decision. It lets economist apply microeconomics analysis to the management units and business. It employs various mathematics tools to derive the correlation among different entities.
Another important aspect is about the decision making. It is not a straightforward process to design strategy and take decisions. Decision-making includes making a product choice and defining the product portfolio. A manager has to make the decision about the business area, pricing, Funds assessment and promotional activities.
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