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Managerial Economics is indeed an off-shoot of the Second World War. Before the outbreak of this war, the study of economics was purely an academic exercise, while business was a pure practice based on common practical sense of human mind. The Second World War created a tremendous pressure on scarce economic resources of the world. Thus, the need for optimum utilization of resources intensified further,which ultimately gave birth to a new discipline popularly known as Managerial Economics.The present business world has become very dynamic, complex, uncertain and risky. Therefore taking appropriate, correct and timely decision has become a challenging and tedious task. The existence/ survival and growth of business basically depends on such decisions. Undoubtedly, Managerial Economics is a friend.philosopher and guide to the business leaders and managers.