OVERVIEW
This text is designed to teach students the economic way of thinking about business decisions and strategy. Managerial Economics develops critical thinking skills and provides students with a logical way of analyzing both the routine decisions of managing daily operations of a business as well as the longer-run strategic plans that seek to manipulate the actions and reactions of rival firms. It is a self-contained textbook that requires no previous training in economics. The text carefully develops and applies the most useful concepts for business decision making and strategic planning.




POINTS TO REMEMBER
(a) Self-contained Empirical Analysis: Offers self-contained treatment of statistical estimation of demand, production, and cost functions
(b) New Illustrations: Includes 5 new illustrations on topics such as Effects of Changes in Determinants of Supply, Diamonds are Forever – Entry Barriers are Not, etc.
(c) Updated coverage in existing content: Includes additional discussion of topics such as separation of ownership and coverage of business, and existing illustrations across the chapters
(d) Flexible Mathematical Rigour: Starts with only algebra and graph-reading skills, while all other analytical tools are developed within the text itself
(e) Dual Sets of End-of-Chapter Questions: Provides both Technical Problems and Applied Problems
(f) OLC: Comprehensive supplementary materials including Instructor’s Manual, PPTs, Test Bank, Online Appendices, Web Chapter, and Duplicate Technical Problems with Answers

CHAPTER 1 Managers, Profits, and Markets
CHAPTER 2 Demand, Supply, and Market
CHAPTER 3 Marginal Analysis for Optimal Decisions
CHAPTER 4 Basic Estimation Techniques
CHAPTER 5 Theory of Consumer Behavior
Online Appendix 1: Substitution and Income Effects of a Price Change
CHAPTER 6 Elasticity and Demand
CHAPTER 7 Demand Estimation and Forecasting
Online Appendix 2: Estimating and Forecasting Industry Demand for Price-Taking Firms
CHAPTER 8 Production and Cost in the Short Run
CHAPTER 9 Production and Cost in the Long Run
CHAPTER 10 Production and Cost Estimation
Online Appendix 3: Linear Programming
CHAPTER 11 Managerial Decisions in Competitive Markets
CHAPTER 12 Managerial Decisions for Firms with Market Power
CHAPTER 13 Strategic Decision Making in Oligopoly Markets
CHAPTER 14 Advanced Pricing Techniques
Online Appendix 4: Pricing Multiple Products Related in Production
CHAPTER 15 Decisions Under Risk and Uncertainty
CHAPTER 16 Government Regulation of Business


APPENDIX: Statistical Tables