<![CDATA[Managerial economics is an interdisciplinary field that integrates economic principles with theories and methods of decision-making to assist managers in allocating scarce resources efficiently under conditions of uncertainty, information constraints, and changing business environments. However, managerial decision-making cannot be adequately understood from an economic perspective alone, as managerial choices are also shaped by behavioral, organizational, financial, strategic, and institutional factors. This article aims to analyze the scope and limitations of managerial economics and examine its relationship with other theories and disciplines that contribute to managerial decision-making. The analysis adopts a conceptual approach based on a literature review of managerial economics, decision theory, microeconomics, strategic management, and organizational behavior. The analysis indicates that managerial economics provides a strong analytical framework for evaluating alternatives, incentives, costs, benefits, risks, and efficiency, but its explanatory and practical capacity is constrained when decisions involve subjective preferences, bounded rationality, incomplete information, organizational dynamics, and institutional or political considerations. Therefore, the effectiveness of managerial economics does not depend on the isolated application of economic principles but on their integration with decision theory and complementary management perspectives. The article highlights the importance of an interdisciplinary approach to translating economic analysis into managerial decisions that are more context-sensitive, adaptive, and accountable.]]>
Copyrights © 2026
