Which is an example of an internal operational issue within the scope of managerial economics?

### Why this is right Product pricing is an internal operational issue because management can make or influence the firm's pricing decision. The other choices describe wider environmental conditions. ### The concept The scope of managerial economics includes internal choices such as what and how much to produce, technology, promotion, pricing, investment, profit, and inventory. It also includes external issues such as the economic system, government policy, financial institutions, trade, labor markets, and political conditions. Distinguishing the two helps managers separate choices they control from conditions they must respond to. ### The other options - **A national trend in foreign trade**: this is an external economic condition, not a firm's internal operational choice. - **The political stability of the country**: this is an external political condition. - **The structure of national financial institutions**: this is part of the external business environment. ### Terms - **Operational issue**: a problem arising within the organization and generally subject to management control. ### Remember Pricing is a firm decision; national trade and political conditions are environmental factors.