Journal of Applied Business, Economics and Strategic Management ISSN: 3139-1664 (Online)

Authors: Priya Sharma, Ankit Mehta

Abstract: Managerial economics plays a pivotal role in determining effective pricing strategies that maximize profitability and market share. Pricing is a key element of the marketing mix, influenced by demand, cost structures, competition, and macroeconomic factors. This paper explores the application of managerial economic principles in pricing decisions, focusing on demand analysis, cost-volume-profit relationships, market structures, and strategic price optimization. Through literature review, case studies, and empirical data, the study highlights how managerial economics supports decision-making in setting prices for goods and services in competitive environments. The findings reveal that integrating economic analysis into pricing strategies enables firms to enhance revenue, sustain competitive advantage, and respond effectively to market dynamics. Recommendations for optimizing pricing strategies and overcoming market challenges are also discussed.

Keywords: Managerial economics, pricing strategies, demand analysis, cost-volume-profit, market structures, price optimization, strategic management.