The following points highlight the top five responsibilities of managerial economist.
Responsibility # 1. To make a reasonable profit on capital employed:
He must have a strong conviction that profits are essential and his main obligation is to assist the management in earning reasonable profits on capital employed in the firm.
Responsibility # 2. He must make successful forecasts by making in depth study of the internal and external factors:
This will have influence over the profitability or the working of the firm. He must aim at lessening if not fully eliminating the risks involved in uncertainties. He has a major responsibility to alert management at the earliest possible time in case he discovers any error in his forecast, so that the management can make necessary changes and adjustments in the policies and programmes of the firm.
Responsibility # 3. He must inform the management of all the economic trends:
A managerial economist should keep himself in touch with the latest developments of national economy and business environment so that he can keep the management informed with these developments and expected trends of the economy.
Responsibility # 4. He must establish and maintain contacts with individuals and data sources:
(i) To establish and maintain contacts:
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A managerial economist should establish and maintain contacts with individuals and data sources in order to collect relevant and valuable information in the field.
(ii) To develop personal relations:
To collect information he should develop personal relations with those having specialised knowledge of the field.
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(iii) To join professional associations and should take active part in their activities:
The success of this lies in how quickly he gathers additional information in the best interest of the firm.
Responsibility # 5. He must earn full status in the business and only then he can be helpful to the management in good and successful decision-making:
For this:
(i) He must receive continuous support for himself and his professional ideas by performing his function effectively.
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(ii) He should express his ideas in simple and understandable language with the minimum use of technical words, while communicating with his management executives.