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Why is managerial economics studied as a separate course in the field of business management?

Managerial economics is studied as a separate field because it combines two broad subjects, management and economics. Managerial economics blends the theories of economics in the management process. Focus is mainly directed towards microeconomics and business decision making. The aim of the course is to develop knowledge on how information from the field of economics can be used to optimize managerial decisions, which mostly revolve around resources and their allocation. Business administrators would thus have valuable information that would guide them on what products to pursue, how much of the product to produce and the right price to charge for the product among other aspects of business. The decisions are mostly based on capital available, market demand and labor among other resources required by the business to turn inputs to outputs. In addition, the extensive theories make it necessary to study managerial economics separately given that microeconomics is a broad subject on its own.

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