Managerial Economics

This book provides a complete, comprehensive and authentic text on micro and macro aspects of managerial economics. Through regular revisions it has kept itself up-to-date and in line with the requirements of the times during the three decades of its existence. Due to increasing application of economic theories, concepts and tools of economic analysis, and various universities and institutes modifying their curricula, the book has been revised again. Some new chapters, some new sections, sub-sections, and additional explanatory matters have been added to this edition, so that even the students with insufficient knowledge of basic economics are able to fully understand and appreciate the more complex topics in managerial economics. Readers will find the usefulness of the book vastly enhanced now. Salient features clearer concepts and theories more numericals and examples more questions and exercises five new chapters, 10 new sections. O new chapters: 1. 'basics of the market system and market equilibrium´ to give an overview of the market system (ch. 6). O 2. An introduction to macroeconomics to show its usefulness for business management (ch. 18). O 3. 'circular flow model of the economy' shows how product and money flows make it work (ch. 19). O 4. Being a global problem, a study of ´inflation´ is important to a business manager (ch. 25). O 5. Changing business environment due to globalization needs to be studied (ch. 26). New sections / topics: o 'what is economics' in chapter 1 o 'definition of economic variables' and 'interrelations between variables' (ch. 4) o 'derivation of market demand curve' and 'use of elasticities of demand (ch. 8) o 'steps in demand forecasting' (ch. 9). O 'application of the law of diminishing returns' and 'determining optimum employment of labour' (ch. 10) o the concept of 'learning curve' (ch.