They're not exact replications of real circumstances and aren't intended to be. Thus the decision-making lies all over the enterprise and covers … Importance 5. They argue that it is only through making decisions that an organisation can accomplish its short-term and long-term goals. So its Role And Importance Of Managerial Economics In taking Right Decisions. Meaning of Decision Making 2. Making Economic Decisions When we hear the term “economics,” we tend to think about ups and downs in the economy as well as graphs mysteriously depicting supply and demand. 2 Training decisions25 6. Definition of Decision-Making: Most writers on management think that management is basically a decision-making process. Decision Making refers to a process by which individuals select a particular course of action among several alternatives to produce a desired result. Importance or uses of Macroeconomics in making Business Decision Macroeconomics studies the units of the economy which have relation with the whole economy or large units of economy. In managerial decision-making, a cost is not really a cost unless it requires a sacrifice of alternatives, i.e., unless it is an opportunity cost. Here, the point is, decision making process is cumulative and consultative process. and find homework help for other Managerial Economics questions at eNotes Appropriate decision making is the strength of business. In doing so, managerial economics is of great importance for a business manager. Importance of Decision-Making source:www.slideshare.net Decision making is considered as the backbone for the business management because without taking the right decision at the right time, nothing can be performed. Managerial economics is the study of how managers can apply economic principles and analyses as well as quantitative tools in making an effective business and managerial decisions involving the best use (allocation) of the organizations scarce resources to achieve their objectives. The process, on the whole, bears its pros and cons and would by and large emanate results and consequences in the organizations’ overall growth and prospects. Meaning of Decision Making: Decision Making is an important function in management, since decision-making is related to problem, an effective decision-making helps to achieve the desired goals or objectives by solving such problems. They argue that it is only through making decisions that an organisation can accomplish its short-term and long-term goals. For examples, macroeconomics studies the gross domestic products of consumer and product goods. Importance of Demand Analysis in Business Decision Making: The quantity of goods and services that consumer are willing and able to purchase in the market at various prices during a period of time is called demand.The proper analysis of demand is very much important in Buisness Decision making because of the following reasons: