Michelle Gordon

BUAD 641

Discussion

Week 5

Managerial economics is about economic concepts and studying the problems and making decisions by management. It is sometimes referred to as business economics. A traditional economy is an economic system in which traditions, customs, and beliefs shape the goods and the products the society creates. A traditional economy can trade for goods or services. There is not much of a surplus. A business firm is an economic organization, that produces resources into goods that are sold in the market. "Many decisions taken within organizations are portrayed as driven by considerations of cost and benefit"( Morrell, 2004). Many managers care more about the cost and benefit of a product and how it affects their company and they are less concerned...