Fundamentals of Managerial Economics provides a through treatment of those aspects of economy theory and analysis that are most important in managerial decision making. The presentation focuses on tools and techniques of economics analysis most useful in the decisionmaking process.
While both micro and macroeconomic relationships influence managerial decisions, Fundamentals of Managerial Economics concentrates primarily on microeconomic topics. The demand for a firm’s goods and services plays a major role in determining the profitability of operations. Demand theory and analysis are, therefore, core subjects in the study of managerial economics. Similarly, the success of a firm depends on the efficiency with which resources are required and ultilized. Production and cost analysis, which examines the economics of resource allocation and employment, provides insight into this important area.
Fundamentals of Managerial Economics throughly develops and integrates the areas of demand and supply analysis. This approach gives the student a strong foundation for problem analysis. Of course, managerial decision must be considered within the broader context of the firm’s environment as dfined by industry, government, and the public. Thus, the study of market structure and of the role of government in the market economy is an important, albeit controversial, aspect of managerial economics. Our coverage of these areas is meant to be both stimulating and comprehensive. Finnaly, Investment decisions and competitive strategy are treated as areas in which the tools of managemerial economics can be utilized in the process of long-term planning.
Each chapter in fundamentals of managerial economics containts solved problems, questions, and unsolved problems. These are designed to techniques of economic analysis.