What are scopes of managerial economics?

ans should be in respect to economics

Answer:
Managerial economics is a branch of economics related to business decisions. It covers capital budgeting, pricing theory, and risk and production analysis. It tries to bridge the gap between theoretical and applied economics, and seeks to provide guidance to the business on how to maximize profits in the long run.
Managerial economics (also called business economics), is a branch of economics that applies microeconomic analysis to specific business decisions. While doing so, managerial economics also uses macro-economic analyis, economic modelling and forecasting and econommetrics deopending on the area of business decision application. As such, it bridges economic theory and economics in practice. It draws heavily from quantitative techniques such as regression 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.

Almost any business decision can be analysed with managerial economics techniques, but it is most commonly applied to:

Risk analysis - various uncertainty models, decision rules, and risk quantification techniques are used to assess the riskiness of a decision.
Production analysis - microeconomic techniques are used to analyse production efficiency, optimum factor allocation, costs, economies of scale and to estimate the firm's cost function.
Pricing analysis - microeconomic techniques are used to analyse various pricing decisions including transfer pricing, joint product pricing, price discrimination, price elasticity estimations, and choosing the optimum pricing method.
Capital budgeting - Investment theory is used to examine a firm's capital purchasing decisions.

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