Uncertainty is present in every managerial decision, and Managerial Economics: A Mathematical Approach effectively demonstrates the application of higher-level statistical tools to inform and clarify the logic of problem solving in a managerial environment. While illuminating managerial decision-making from all possible angles, this book equips readers with the tools and skills needed to recognize and address uncertainty. The book also explores individual, firm, and market-level decisions; discusses all possible risks and uncertainties encountered in the decision-making process; and prepares readers to deal with both epistemic and aleatory uncertainty in managerial decisions. Managerial Economics features: An emphasis on practical application through real-life examples and problems An accessible writing style that presents technical theories in a user-friendly way A mathematical and statistical point of view that reveals the presence of uncertainty inherent in managerial decisions Thoroughly class-tested material including problems at the end of each chapter, case study questions, review exercises, and objectives that summarize the main discussions Managerial Economics is an excellent book for upper-undergraduate and graduate-level courses in business and economics departments. The book is also an ideal reference and resource for managers, decision makers, market analysts, and researchers who require information about the theoretical and quantitative aspects of the topic.

Uncertainty is present in every managerial decision, andManagerial Economics: A Mathematical Approach effectivelydemonstrates the application of higher-level statistical tools toinform and clarify the logic of problem solving in a managerialenvironment.While illuminating managerial decision-making from all possibleangles, this book equips readers with the tools and skills neededto recognize and address uncertainty. The book also exploresindividual, firm, and market-level decisions; discusses allpossible risks and uncertainties encountered in the decision-makingprocess; and prepares readers to deal with both epistemic andaleatory uncertainty in managerial decisions. ManagerialEconomics features:* An emphasis on practical application through real-lifeexamples and problems* An accessible writing style that presents technicaltheories in a user-friendly way* A mathematical and statistical point of view thatreveals the presence of uncertainty inherent in managerialdecisions* Thoroughly class-tested material including problems atthe end of each chapter, case study questions, review exercises,and objectives that summarize the main discussionsManagerial Economics is an excellent book forupper-undergraduate and graduate-level courses in business andeconomics departments. The book is also an ideal reference andresource for managers, decision makers, market analysts, andresearchers who require information about the theoretical andquantitative aspects of the topic.

PREFACE xixUNIT I METHODOLOGICAL PRELIMINARIES1 Qualitative Fundamentals 32 Quantitative Fundamentals 13UNIT II DECISIONS AT THE CONSUMER LEVEL3 Theory of Consumer Choice 474 Consumer Demand: Theoretical Analysis 1035 Consumer Demand: Empirical Estimation 1606 Consumer Demand: Economic Forecasting 200UNIT III MANAGERIAL DECISIONS AT THE FIRM LEVEL7 Production Theory 2438 Cost Theory 2879 Production and Cost: Estimation and Forecasting 349UNIT IV MANAGERIAL DECISIONS AT THE MARKET LEVEL10 Market Structure and Business Organization 36711 Pricing Decisions and Practices 414UNIT V MANAGERIAL DECISIONS IN THE LONG RUN12 Capital Budgeting and Investment Project Evaluation 45113 Risk Analysis and Managerial Decisions under Uncertainty 48714 Management Consultants and Information 546APPENDIX 560FURTHER READING 569INDEX 573