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Elements Of Industrial Economics

There are two broad elements of industrial economics.

• The descriptive element, is concerned with the information content of the subject.
•  The second element is concerned with the business policy and decision making.

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Importance of industrial economics

• Industrial Economics helps in understanding issues like – the levels at which the prices, capacity, and the output are set, the differentiation factor in between the products, the amount to be invested in research and development (R&D), and the need and capacity of advertising, apart from giving an insight about how the firm should organize their activities.
• Industrial Economics also gives insights into how firms organise their activities, as well as considering their motivation.

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Why Industrial Economics Considering As A Major Subject In Various Universities?

• This subject deals with the levels at which capacity, output, and prices are set;
• This subject deals with the extent that products are differentiate from each other;
• His subject describes how much firms invest in research and development (R&D);
• the subject of industrial economics helps in the understanding of how and why firms advertise;
• the study of industrial economics is important because it talks about the industrial location;
• international economises a subject which defines the determinants of profitability;
• this subject deals with the theory of demand and supply; and
• this subject helps in the understanding of the cost and profit analysis of the various industries. And helps the manager and owner’s teak important decisions. The students who are studying management will definitely need to know about this.

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Various Branches And Important Topics Covered Under Industrial Economics

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