This text uses the theory of the firm to integrate and link economic theory (microeconomics and macroeconomics), decision sciences (mathematical economics and econometrics), and the functional areas of business (accounting, finance, marketing, personnel or human resource management, and production) and shows how all of these topics are crucial components of managerial decision making. The text is divided into five parts-Part I examines the nature and scope of managerial economics, Part II analyses demand, Part III presents the theory and measurement. It covers the full range of optimization techniques used in managerial decision making. The book offers extensive end-chapter material in the form of the summary, discussion questions, problems, chapter appendixes along with appendix problems, supplementary readings, and Internet site addresses. This seventh edition includes new sections, new case studies, some of which are India based, and five new longer Indian integrated case studies. In addition, the existing case studies, supplementary readings, and Internet site addresses have been revised.