Managerial Economics For Dummies

Does the study of Managerial Economics make your head spin? Relax! This hands-on, friendly guide helps you make sense of complex business concepts and explains to you in plain English how Managerial Economics enhances analytical skills, assists in rational configuration, and aids in problem-solving.

Managerial Economics For Dummies gives you a better understanding of all the major concepts you'll encounter in the classroom: supply and demand, elasticity, decision-making, quantitative analysis of business situations, risk analysis, production analysis, pricing analysis, capital budgeting, critical thinking skills, and much more.

• Tracks to a typical Managerial Economics course
• Includes easy-to-understand explanations and examples
• Serves as a valuable classroom supplement

If you're enrolled in business courses looking for a supplemental guide to aid your understand of the complex theories associated with this difficult topic, or a manager already in the corporate world looking for a refresher, Managerial Economics For Dummies has you covered.

Introduction 1

Part I: The Nature of Managerial Economics 9

Chapter 1: Managerial Economics: Taking Care of Business 11

Chapter 2: Supply and Demand: You Have What Consumers Want 23

Chapter 3: Calculus, Optimization, and You 39

Part II: Considering What Side You’re On in the Decision-Making Process 55

Chapter 4: Using the Elasticity Shortcut 57

Chapter 5: Consumer Behavior: A Market for Anything? 73

Chapter 6: Production Magic: Pulling a Rabbit Out of the Hat 91

Chapter 7: Innovation and Technological Change: The Future Is Now 109

Chapter 8: Production Costs: Where Less Is More 121

Part III: Recognizing Rivals: Market Structures and the Decision-Making Environment 137

Chapter 9: Limited Decision-Making in Perfect Competition 139

Chapter 10: Monopoly: Decision-Making Without Rivals 161

Chapter 11: Oligopoly: I Need You 181

Chapter 12: Game Theory: Fun Only if You Win 203

Chapter 13: Monopolistic Competition: Competitors, Competitors Everywhere 223

Chapter 14: Increasing Revenue with Advanced Pricing Strategies 235

Part IV: Anticipating Surprises: Risk and Uncertainty 261

Chapter 15: Risk Analysis: Walking Through the Fog 263

Chapter 16: Using Capital Budgeting to Prepare for the Future 285

Chapter 17: Principal–Agent Issues and Adverse Selection: Can Everyone Agree? 299

Chapter 18: Rules, Rules Everywhere: Government and Managerial Decision-Making 315

Part V: The Part of Tens 333

Chapter 19: Ten Critical Concepts 335

Chapter 20: Ten Managerial Mistakes and How to Avoid Them 343

Index 351

Robert Graham, PhD, is a Professor of Economics with an extensive administrative background, serving for three-and-a-half years as the Interim Vice President and Dean of Academic Affairs at Hanover College.