✴Managerial economics generally refers to the integration of economic theory with business prac­tice. Economics provides tools managerial economics applies these tools to the management of busi­ness. In simple terms, managerial economics means the application of economic theory to the problem of management. ✴ ► It enables the business executive to assume and analyse things. Every firm tries to get satisfactory profit even though economics emphasises maximizing of profit. Hence, it becomes neces