1.
BUSINESS ECONOMICS

2.
Meaning
 Business Economics is playing an important role in our daily economic life and business
practices.
 Various new types of businesses are emerged, while taking the business decisions
businessmen are using economic tools.
 Economic theories, economic principles, economic laws, equations economic concepts
are used for decision making.
 In 1951 Joel Dean published a book entitled "Business Economics." The subject Business
Economics has gained popularity. Business Economics reveals that how economic
analysis is used to formulate the economic policies in respect to the business firms.
 Business Economics was formerly known as "Business Economics." It is also called as
"Applied Economics". The world Business Economics is formed from the two worlds
Business and Economics.

3.
Definitions
 According to 'McNair and Meriam' defined it as "Business Economics consists of the use of Economic
modes of thought to analyse business situations.“
 According to Mansfield, “Business economics is concerned with the application of economic concepts and
economics to the problems of formulating rational decision making”
 In the words of Spencer and Seigelman, “Business Economics is the integration of economic theory with
business practice for the purpose of facilitating decision making and forward planning by management.”
 According to Douglas, “Business economics is concerned with the application of economic principles and
methodologies to the decision making process within the firm or organization. It seeks to establish rules and
principles to facilitate the attainment of the desired economic goals of management”.

4.
 Business Economics is the latest terminology used in Business organization.
 It denotes the application of economic theories to the business conditions and
decision making in business.
 It involves a coordination process linking business methods with the formation
of future plans and making decisions in business.
 To say in brief Business Economics is an Applied Science in the sphere of
business organization.

5.
Characteristics
Use of economic theories
Realistic one
Normative science
Use of Macroeconomics
Practical
Study of Allocation of Resources
Micro economic nature

6.
Scope of Business Economics
Cost and production Analysis.
Pricing Decisions, policies and practices
Profit Management
Capital Management
Demand Analysis and Forecasting

7.
Objectives of Business Economics
Grow and develop the business
Maintain a regular supply of goods and services
Plan for long-term survival
Optimize the use of resources
Make a profit
Improve labor utilization
Minimize risks