Economic theory offers a variety of concepts which can be of considerable assistance to the managers in decision-making practices. These tools are helpful for managers in solving business-related problems. These are thus taken as guides in making decisions. The following arc the basic economic tools for decision-making:

  1. Opportunity cost principle

2. Incremental concept/principle

3. Principle of time perspective

4. Discounting principle

5. Equi-marginal principle.