Synopsis Managerial Economics develops simple, practical tools and concepts for business students as well as practicing managers. It uniquely integrates the discipline to other managerial functions, including accounting, finance, human  resource management, and marketing. managerial economics teachers students how to make. Almost any business decision can be analysed with managerial economics techniques, but it is most commonly applied to: Demand estimation - statistical techniques such as regression analysis are used to determine the level of demand for a product, service, or brand. 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.