ADMINISTRATIVE ECONOMICS

Imagine for a moment that you have successfully completed all of your educational requirements and are now working as an engineer for a manufacturing company. What kinds of things do you do there? You have devised a strategy to create the greatest possible amount of items of a certain quality at the lowest possible cost. On the other hand, if you are in charge of managing sales, you are tasked with maximising revenue while minimising expenditures on marketing and promotion. To put it another way, you want to keep your expenses as low as possible while maximising your profits, and when you do so, you are putting the concepts of administrative economics into practise. When carrying out their day-to-day responsibilities, managers are constantly required to make decisions regarding a variety of matters, including the following: how much quantity is to be supplied; at what price; whether the product should be produced in-house or whether it should be purchased from a third party; how much quantity needs to be produced in order to make a certain amount of profit; etc. The study of administrative economics gives us a foundational understanding of how to approach the search for answers to administrative issues. The fields of economics and management are the parents of the academic subfield known as administrative economics, which is an outgrowth of these two fields. In other words, in order to comprehend the nature of Administrative economics and the breadth of its application, it is required to have at least a basic understanding of what these disciplines are