Includes bibliographical references and indices

Decision making under risk and uncertainty; demand theory, analysis and estimation - consumer behaviour, market demand analysis for decision making, estimation of the demand functions; production and cost analysis - production functions and cost curves, cost concepts for decision making, cost estimation and forecasting; pricing analysis and decisions - models of the firm's pricing decisions, pricing decisions in practice, new product pricing, bids and price quotes; topics in managerial economics - advertising and promotional decisions, product quality and competitive strategy, capital budgeting and investment decisions.

This text focuses on the economic theory that is relevant to business decision making, examines business practice in the light of this theory and gives recent examples of business practice. Subjects covered include decision making, demand and cost theory and estimation, pricing models and practices, advertising, quality choices and capital budgeting. This new edition features empirical cases which require the student to analyze business situations using real data. Other new additions include many end-of-chapter problems and short cases and coverage of recent advances in economics that are valuable in the study of managerial economics.