Meaning and Nature of Business Economics

Business economics is a relatively new branch of economics developed in the 1950s
Business economics refers to the application of economic theories, principles, and methods in the business or managerial decision-making process. It provides the base or criteria to the managers while solving the problems related to the allocation of scarce resources

Business organizations face different types of problems due to scarcity of resources like what, how much, and how to produce, how much to invest, what should be the reasonable profit, price, and sales expenditure, and so on.
Business economics works as a tool for managers to take decisions in those areas and thereby it helps in business management.


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