how manegerial economics bridges the gap between economic theory and business practise,with example.?
I disagree with the previous poster Here is a good exampleSuppose Julie runs the bookstore at the local collegeShe has a small space at the back of the bookstore where there are a few bookshelves, but the books do not seem to be sellingShe is thinking about putting a copy machine there, and charging students to make copies on a page by page basisManagerial economics uses basic economic principles to understand the marginal costs of running the machine, as well as the opportunity costs of having the machine versus keeping the bookshelves.
I disagree with the previous poster Here is a good exampleSuppose Julie runs the bookstore at the local collegeShe has a small space at the back of the bookstore where there are a few bookshelves, but the books do not seem to be sellingShe is thinking about putting a copy machine there, and charging students to make copies on a page by page basisManagerial economics uses basic economic principles to understand the marginal costs of running the machine, as well as the opportunity costs of having the machine versus keeping the bookshelves.
