Managerial Economics is economics that is applied in decision making

Managerial economics is the application of management concepts that help in decision making and solving business-related problems. Managerial economics applied in decision-making means that there are certain principles associated with economics that affect how we make decisions in real life. These principles are; people tradeoffs, which suggest people have different options available, but they have to make a choice. Also, the opportunity cost is a principle since one alternative has to be forgone to get the better one. Furthermore, rational people tend to think about the profits they'll make from a project before investing in it. Lastly, people respond to incentives. Positive incentives motivate people.