Managerial Economics

Managerial Economics

Bus 640

Professor Sayim

June 9, 2014

Introduction

This paper will focus on the importance of economic instruments needed when making decisions on a managerial level. The process of managerial decision-making is labeled in various market structures. The ultimate goal in companies is to maximize their profits within each various structure of business. The way social order is arranged, managers are the decision makers in a business. The decisions that come from our manager are how to allocate our sources, achieve goals and solve problems within an organization. The way managers solve problems within a company is essential in order for a company to succeed.

Wal-Mart has been under various inspections and examinations for many reasons. There have been various stories regarding business shrewdness and undesirable social environments. While Wal-Mart continues to grow, there has been scrutiny regarding their expansion plans as people begin to wonder how the expansions will affect employment and economic issues. When one reflects on noticeable financial figures with Wal-Mart, it will become obvious why they have been under such media scrutiny. Wal-Mart has considerably been one of the largest companies since 1992 listing as a top company in Forbes. (Basker, 2007).

Decision makers within any company and especially Wal-Mart, often find that the decisions that have are to be made have to be made under uncertainty however must also be aware of the goals set forth. The uncertainty involved in decision making does not quite make future proceedings clear yet the decision will still have to be made. It is important that decision makers carefully assess each specific situation using various analyses in order to make a decision that will benefit the business and its position in the market. (Douglas, 2012)

“An early economic theorist, Frank H. Knight (Knight, 1921), made the technical distinction...