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1. RESPONSIBILITIES
OF
MANAGERIAL
ECONOMIST
BY
Muni jyothish Kumar . Matam
Asst . professor
Faculty of Management

2. Economist
Economist is the person who
analyses and understands the
internal and external factors of
the nation's business , uses
economic concepts and tools to
plan future actions in order to
make optimal results

3. Managerial
Economist

4. Role of managerial
economist
• managerial economist plays key role in the
process of the firm by assisting management
in using the specialised and complicated
techniques and methods which are required to
make the process of decision making and
planning
•Hence all the large business and industrial
enterprises in developed countries employ one
or more managerial economist who studies
and analyses the following Internal and
External factors that may influence the

5. INTERNAL
FACTORS•These are the factors affecting
managerial decisions over which the
management has some control.
These factors lie within the scope
and operations of a firm such as :
1.Determination of price policy
2.Decision of contraction or
expansion of business
3.Determination of the level of
efficiency in operation

6. INTERNAL
FACTORS
Managerial economist can advise
management on following
questions relating to internal
factors
I.What should be the sales budget
for the next year?
II.What would be the policy
regarding inventory for next year ?
III.What should be the production

7. I.What should be the wage policy ?
II.What type of changes required in
the credit policy of the enterprise ?
III.What should be the policy
regarding cash for next year
IV.What should be the profit
budget for next year?

8. •These are the factors over which
the management has no control
•These factors related to business
environment in which a firm has
to operate such as
•Business policy of the
government
•Competition
•Economic policy of the
government

9. Advises to management on
the problems regarding
external factors
•What changes have been taken place in
policies government and what more
changes are expected in near future in this
field ?
•What type of cyclical fluctuations are
expected in national economy in future ?
•What are the expectations of demand of
goods being produced by the enterprise ?
•What changes are expected to take place

10. FUNCTIONS OF
MANAGERIAL ECONOMIST

11. Function
s1.Sales forecasting and market research
2.Economic analysis of companies
3.Pricing policy of industry
4.Capital projects and production
programme
5.Security analysis and forecasts
6.Advice on trade and public relations
7.Economic analysis of agriculture
8.Analysis of undeveloped economies
9.Environmental forecasting

12. Responsibilities of
managerial economist

13. INTRODUCTION
In order to serve the management a
managerial economist has to know his
responsibilities.he must keep in mind the main
objective of making a reasonable Profit on the
invested capital in his firm.
Firms are not always after
profits maximization , but to continue in
business every firm has to operate profits.
Therefore business economist has the chief
obligation of helping the management to make
more profits than before.

14. Making successful
forecasts
• Management have to take decisions
concerning the future and the future is
uncertain. This uncertainty cannot be
eliminated altogether but it can be
reduced through scientific forecasts of the
economic environment.
• A wise managerial economist can revise
his forecasts time to time in light of new
developments in his business.
• As soon as he finds a change in his
prediction , he has to alert the

15. Maintaining contacts
• A managerial economist must establish
and maintain contacts with data sources
for his analysis and forecasts.
• He must have familiarity with individuals
who are specialists in the field having
some link with his work.
• He must join professional associations and
subscribe to the journals which gives him
fresh information,
• This is the biggest quality of managerial
economist is his ability to obtain

16. Knowing the
management fully
• A managerial economist has to
participate in decision making and
forward planning. For this he must
able to earn full status on the
business team.
• He must be prepared to take up
assignments on special projects also.
• He must be able to express clearly
and non technically so that his advice