Each year, thousands of businesses file for bankruptcy protection
because managers fail to efficiently organize the company's
operations, misread market trends, pay inadequate attention to
product quality, or misinterpret the activities and intentions of
rival companies. Perhaps they fail to formulate optimal advertising
or financing strategies, procure raw materials and components at
least cost, or provide adequate incentives to motivate workers to
put forth their best efforts. Managerial economics is the
application of economic principles to topics of concern to
managers. This textbook develops a framework for predicting
managerial responses to changes in the business environment. It
combines the various business disciplines with quantitative methods
to identify optimal solutions to more efficiently achieve a firm's
organizational objectives. The topics discussed in this textbook
are readily accessible to students with a background in the
principles of microeconomics and business mathematics. The
selection and organizations of topics makes the textbook
appropriate for use in a wide range of curricula by students with
different backgrounds.
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