In simple words, Managerial Economics is a stream or subset of Economics, a much larger set. Managerial Economics can be considered a confluence of Economics, Management Studies and Decision Making Strategy and Analytics. This is one of the most essential course for Economics Postgraduate/MBA Students and is compulsory.

Managerial economics, though micro in character, deals only with the firm and has nothing to do with an individual’s economic problems. But micro economics as a branch of economics deals with both economics of the individual as well as economics of the firm.

Whereas managerial economics is micro-economic in character economics is both macro-economic and micro-economic.