Managerial Economics

The book synthesizes economic theory, decision sciences, and business administration to help instructors train students on how managerial decisions are made in the modern, globalized world. Theory is explained clearly and the applications are numerous, real and relevant. The book is divided into five parts: Part One reviews the basics of supply and demand, examines the nature and scope of managerial economics, presents the theory of the firm, and reviews optimization techniques. Part Two analyses demand. Part Three presents the theory and measurement of the firm’s production and costs. Part Four brings together demand analysis with production and cost analysis to show how price and output are determined under various forms of market organization. Part Five examines regulation and the role of government in the economy. The theory and practical examples help illustrate how local economic decision-making is now inescapably global.