What is Business Economics all about:
(i) Economics as a discipline provides a set of concepts and precepts.
(ii) The concepts and precepts together furnish us the tools and techniques of analysis.
(iii) Economic analysis is used as an aid to understand business practices and business environment
(iv) Such understanding facilitates business decision making.
Business Economics attempts to indicate how Business Policies are firmly rooted in economic principles. Business economics tabes a pragmatic approach towards facilitating and integration between economic theory (Principles) and business practices (Policies).
Business Economics Uses:
(a) Microeconomic Analysis of the business unit.
(b)Macroeconomic Analysis of the business Environment
Business Economics is more comprehensive and broad based than managerial Economics which is mostly microeconomics with high degree of analytic rigour through sophisticated tools and techniques of Econometrics and operations research