The second edition of Managerial Economics is a comprehensive textbook specially designed to meet the requirements of management students. Introducing students to the related economics in business decision-making, this text now provides more simplified explanations of the fundamental concepts and principles of managerial economics. In an attempt to better bridge the gap between economic theory and application, the revised edition is now enhanced and supported with several new exhibits, cases, and illustrations.
Beginning with an overview of managerial economics, the book discusses in detail the key concepts such as demand analysis, demand estimation and forecasting techniques, the firm as a producer, the production function, and production costs. It goes on to discuss market conditions, such as perfect competition, monopoly, monopolistic competition, and oligopoly, special pricing practices, markets for factor inputs, long-term investments and risk analysis, and externalities and public goods. Finally, it discusses macroeconomic aggregates and provides insights into fiscal and monetary policies.
Addressing the challenges faced by business organizations, the text explores emerging issues in managerial economics, such as the economics of information and the new economy