Managerial economics
In essence, various still lag in the adoption of economic instruments, constructs and operational and transactional measures of an organization to aid in decision-making for optimal cost management, income and profits (Christopher, 2008, p. 16). Managerial economics has come a long way since Bentley’s (1977) book review of the then standard of learning in various undergraduate and MBA programs. Therefore, the basis of the argument (the quality of education in managerial economics) in this paper is outdated; however, the concerns remain widely relevant to the present date. Simons et al. (2014) revealed that curricula on Natural Resources and Agriculture lag behind in integrating management courses with Economics. As such, managerial economics is as beneficial as it is fleeting in various disciplines leaving decisions that have significant economic impacts to unqualified persons.
Bentley (1977) emphasized the importance of having a managerial economics curriculum that confers skills that are applicable in real life management scenarios. As such, he applauds Simon’s (1975) quantitative rather than a mathematical framework of handling complex problems. Managerial economics has come a long way since to have more convenient and non-cumbersome tools and measures than four decades past. Many disciplines have grown to demand an economic basis of their management and regulation (Simons et al. 2014, p. 46).
Christopher (2008) lists the principles of managerial economics (p. 17). Among them are that the profits or losses of an organization are factored at the business enterprise level, costs are managed according to their nature and revenue management follows demand and opportunity for products. Moreover, profitability is a measure of the expenses against revenues. Organizational goals and objectives are the key influencers of decisions in this framework of decision-making. Managerial economics has alternative analyses of measures such as profits, revenues, and costs that enable their maneuverability to achieve organizational goals, unlike other methods that assess individual performance.
In conclusion, high-level training in managerial economics follows a framework that enables additive and increasingly complex adoption of knowledge and skills. The far-reaching economic effects of administrative decisions have necessitated its penetration in various disciplines. Therefore, the economic principles integrated into management add to its contribution to cost control and profitability. Education curricula need to remain flexible to allow managerial economics to flourish in different management fields.