What are the roles and responsibilities of a managerial economist?

Answer 1

role of managerial economists in disicionmaking?
Managerial economics (also called business economics), is a branch of economics that applies microeconomic analysis to specific business decisions. As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression analysis and correlation, Lagrangian calculus (linear). If there is a unifying theme that runs through most of managerial economics it is the attempt to optimize business decisions given the firm's objectives and given constraints imposed by scarcity, for example through the use of operations research and programming

regards

praveen rao

mail:raojain@gmial.com
When an economist needs a price, interest rate or other

quantity to use in an analysis, he will tend to look to the

product and financial markets for an answer rather than

"building it up" from accounting costs.

Economists are trained to think in terms of marginal change

Economists are generally well-versed in mathematics and

statistics and tend to approach problems using those tools.

Economists also are comfortable with probabilities and will

build models incorporating them. We are trained in doing

simulation studies.

When an economist needs a price, interest rate or other quantity to use in an analysis, he will tend to look to the product and financial markets for an answer rather than "building it up" from accounting costs.Economists are trained to think in terms of marginal changeEconomists are generally well-versed in mathematics and statistics and tend to approach problems using those tools.Economists also are comfortable with probabilities and will build models incorporating them. We are trained in doing simulation studies.
While atmosphere of business uncertainty creates complications in the processof decision making, economic principles help in minimizing theseuncertainity.economist can help by analyzing these economic principles.RisksUncertainty exists in every business and managerial economist can help reduce riskthrough uncertainty model analysis and decision-theory analysis. Heavy use of statistical probability theory helps provide potential scenarios for businesses to usewhen making decision

Responsibilities of managerial economist

Measuring the increase in earning capacity of firm

a managerial economist hasgreat responsibility to achieve an objective of earning maximum profit. If he does not dothis properly the capacity of firm cannot achieve its objects. therefore, the managerialeconomist should continue his efforts in increasing the capacity of his firm.

Successful forecasting success

of a business firm is largely determined by thedegree of accuracy and correctness of forecast made by analyst by analyzing allinternal and external factors and by accessing their impact on profitability and workingof firm. He must try to minimize the uncertainties of future .if he finds an error in hisforecast, he should alert the management at earliest , so the necessary changes maybe made in plans, policies and programming.

Contacting the source of economic information and experts a

managerialeconomist is responsible for providing all the relevant economic information to themanagement so the plans of the organization be chalked out after taking intoconsideration. So he should maintain the contact with all possible sources from wherehe can collect the information relevant for firm.

For this purpose, he should joinprofessional associations and take active part in them. In fact, one of the best means of determining the caliber of a managerial economist is to evaluate his ability to obtaininformation quickly by personal contacts rather than by lengthy research from either readily available or obscure reference sources.

Achieving respectful status in firm

he

must be able to earn full status on the businessteam. He should be ready and even offer himself to take up special assignments, bethat in study teams, committees or special projects. For, a managerial economist canonly function effectively in an atmosphere where his success or failure can be traced notonly to his basic ability, training and experience, but also to his personality and capacityto win continuing support for himself and his professional ideas.

while intellectually hemust be in tune with industry's thinking the wider national perspective should not beabsents from his advice to top managemen

While atmosphere of business uncertainty creates complications in the processof decision making, economic principles help in minimizing theseuncertainity.economist can help by analyzing these economic principles.RisksUncertainty exists in every business and managerial economist can help reduce riskthrough uncertainty model analysis and decision-theory analysis. Heavy use of statistical probability theory helps provide potential scenarios for businesses to usewhen making decision

Responsibilities of managerial economist

Measuring the increase in earning capacity of firm

a managerial economist hasgreat responsibility to achieve an objective of earning maximum profit. If he does not dothis properly the capacity of firm cannot achieve its objects. therefore, the managerialeconomist should continue his efforts in increasing the capacity of his firm.

Successful forecasting success

of a business firm is largely determined by thedegree of accuracy and correctness of forecast made by analyst by analyzing allinternal and external factors and by accessing their impact on profitability and workingof firm. He must try to minimize the uncertainties of future .if he finds an error in hisforecast, he should alert the management at earliest , so the necessary changes maybe made in plans, policies and programming.

Contacting the source of economic information and experts a

managerialeconomist is responsible for providing all the relevant economic information to themanagement so the plans of the organization be chalked out after taking intoconsideration. So he should maintain the contact with all possible sources from wherehe can collect the information relevant for firm.

For this purpose, he should joinprofessional associations and take active part in them. In fact, one of the best means of determining the caliber of a managerial economist is to evaluate his ability to obtaininformation quickly by personal contacts rather than by lengthy research from either readily available or obscure reference sources.

Achieving respectful status in firm

he

must be able to earn full status on the businessteam. He should be ready and even offer himself to take up special assignments, bethat in study teams, committees or special projects. For, a managerial economist canonly function effectively in an atmosphere where his success or failure can be traced notonly to his basic ability, training and experience, but also to his personality and capacityto win continuing support for himself and his professional ideas.

while intellectually hemust be in tune with industry's thinking the wider national perspective should not beabsents from his advice to top managemen

A managerial economist helps the management by using his analytical skills and, In order to perform all these roles, a managerial economist has to conduct.
A managerial economist helps the management by using his analytical skills and highly developed techniques in solving complex issues of successful.