Managerial Economics can be said as the combination of business practices with economic theory. This is done as to ease future planning and decision-making with the aid of management. Traditional economics can be said as the economic system where the allotment of available resources is done on the base of inheritance.

Managerial Economics

Managerial economics is a course of the MBA program. The main objective of this course is to make the students realize the link of economics within business management. Many of the Indian universities provide courses in managerial economics. The qualification needed by a student to pursue the course in managerial economics is a graduate degree in any discipline. Students who are going to sit for their finals are eligible to apply too. It is possible for students of managerial economics to get jobs in the teaching sector or with leading corporates.

Some of the areas where Managerial Economics is employed are:

• Capital Budgeting
• Determination of Demand
• Price Analysis
• Production Analysis
• Risk Analysis

Traditional economics

Almost all the colleges in India offer students with course in traditional economics. It is available at both the graduate as well as postgraduate levels. The basic eligibility criterion that is needed for students to study the graduate course is a pass in standard 12. After the completion of this program, students can either go for advanced studies or get jobs with some leading firms. If they opt for higher studies, they can then go for further specialism in the form of a Ph.D. Some of the areas where it is possible for students can get good jobs are with:

• Banks
• Business Journals And Newspapers
• Finance And Investment Firms
• Government Enterprises
• Private Sector
• Public Undertakings

Key differentiators between Managerial Economics and Traditional Economics

The main differences between Managerial Economics &Traditional Economics are:

• The norms of Traditional economies are stated by religion, tradition and customs.
• The science of the effective use of scarce resources can be called as Managerial Economics.
• Traditional Economy generally employs prehistoric techniques and instruments.
• Managerial Economics employs analytical as well as statistical tools to examine economic theories as to solve practical business problems.

Traditional economics and managerial economics have their own roles in the running of out present day society. However, in today’s world, the usage of traditional economics is not much. Conversely, Managerial economics is more used and it considered as most useful.