Meaning of Managerial Economics is the study of application of managerial skills (technical skills, human skills, conceptual skill and diagnostic skill). ME helps the manager in anticipating, determining and resolving the potential problem and obstacles. These problem may due to cost, price forecasting future market, Human Resource Management (HRM), Profit, etc. Managerial economics is also named as a Method of economic theory, by which a good manager resolve problem which is faced by both public and private institution during taking any economic decision.
According to Edwin Mansfield ''managerial economics is concerned with application of economic concepts and economic analysis to the problems of formulating rational managerial decisions.''