a. Managerial economics is an application of economic theory and decision science analytical tools to solve managerial decision problems. Scarcity and opportunity cost are two economic concepts commonly used in making management decisions. Use any ONE company that you are familiar with, elaborate using real examples how these two concepts were being put into practice. a. Managerial economics is an application of economic theory and decision science analytical tools to solve managerial decision problems. Scarcity and opportunity cost are two economic concepts commonly used in making management decisions. Use any ONE company that you are familiar with, elaborate using real examples how these two concepts were being put into practice.