Application of Managerial Economics in Decision Making

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1.0 Introduction7
1.1 Definition of managerial economics7
1.2 Choice and opportunity cost9
2.0 Basic concerns of economics9
3.0.0 Theories of economics12
3.1.0 The theory of demand13
3.1.1 Tastes14
3.1.2 Number of buyers14
3.1.3 Income14
3.1.5 Expectations15
3.2 The theory of supply16
3.3 The theory of production16
3.4 The theory of price( in government)17
3.5 The theory of consumer behaviour17
3.5.1 Rational behaviour17
3.5.2 Preferences17
3.5.3 Budget constraint18
3.5.4 Prices18
4.0 Managerial Economics and Economic Theories18
5.0 General overview of the office of the Attorney General19 6.0 Decision-making centres under the Office of the Attorney General20 6.1 Decisions in the Office of the Attorney General:21
6.2 The role of Public Procurement Act, 2007 in decision-making and application economic theories23 6.3 Other decisions25
6.3.1 Employment decisions25
6.3.2 Training decisions25
6.4 Economic decisions of the Office of the Attorney General and budget constraint25 7.0 Conclusion26



This paper attempt to discuss the application of managerial economics in decision-making in an organisation of my workplace. In discussing managerial economics a link has been made to some economic theories and their influence in decision making. The organisation selected is the Office of the Attorney General. The first part of the paper discusses; what managerial economics is and how it relates to economics; the concept of opportunity cost and its application; what are the concerns of economics and how they have been responded. The second part of this paper discusses theories of economics which the office of the Attorney General apply directly or indirectly in its decisions. The theories which have been looked at are: theory of demand, theory of supply, theory of consumer behaviour, production theory...
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