Managerial Economics brings together topics in microeconomics that can be applied to business decision-making to create a valuable way of thinking about markets and business decisions. Business students will thus become architects of business strategy deciding which products to produce, costs to consider, prices to charge as well as an optimum hiring policy and the most effective style of organization.

Managerial economics, the application of economic methods in the managerial decision-making process, is obviously a fundamental part of any business or management course. This textbook covers all the main aspects: the theory of the firm; demand theory and estimation; production and cost theory and estimation; market structure and pricing; game theory; investment analysis and government policy. It includes case studies, review questions and problem-solving sections at the end of each chapter.

This book will be invaluable to business and economics students, at both undergraduate and postgraduate levels. Using Managerial Economics, students can develop critical thinking skills and a logical way of analyzing their business decisions. It requires no previous training in microeconomics.

Table of Contents:

Part I
1) The Economic Nature of Decision Making
2) The Goals of the Firm
3) The Analysis of Value and Risk
4) Maximization and Optimization
5) Modelling the Decision Context
6) Consumer Behavior and Demand
7) Elasticity and Demand Specifications
8) Protection in the Short Run
9) Production in the Long Run
10) Costs in the Short Run
11) Costs in the Long Run
12) The Competitive Environment
13) Monopoly
14) Monopolistic Competition
15) Oligopolistic Competition
16) Extending the Models
17) Challenges to the Theory of the Firm
18) Ethical Dimensions of Managerial Decisions
19) The Role of the Government
20) The firm is Society
21) Reallocation of Resources by Government
22) International Commerce
23) The Multinationalization of Enterprise
24) Opportunities in Development Economics
Part II
25) History of International Trade
26) Absolute Advantage Theory of International Trade
27) Comparative Advantage Theory of International Trade
28) Hecksler-Ohlin Model
29) Terms of Trade
30) Gains from International Trade
31) Balance of Payment
32) The Foreign Exchange Market
33) Financial Market
34) Purchasing Power Parity
35) International Monetary Fund
36) World Trade Organization