Managerial Economics

M. J. ALHABEEB, PhD, is Professor of Economics and Finance in the Department of Resource Economics at the University of Massachusetts, Amherst. Dr. Alhabeeb has been teaching finance and economics for over thirty years and is a recipient of the Academy of Educational Leadership's Outstanding Teaching Award for Innovative and Creative Teaching.
 
L. JOE MOFFITT, PhD, is Professor in the Department of Resource Economics at the University of Massachusetts, Amherst. The author of over fifty journal articles, Dr. Moffitt received his PhD.

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.

PREFACE xix
 
UNIT I METHODOLOGICAL PRELIMINARIES
 
1 Qualitative Fundamentals 3
 
2 Quantitative Fundamentals 13
 
UNIT II DECISIONS AT THE CONSUMER LEVEL
 
3 Theory of Consumer Choice 47
 
4 Consumer Demand: Theoretical Analysis 103
 
5 Consumer Demand: Empirical Estimation 160
 
6 Consumer Demand: Economic Forecasting 200
 
UNIT III MANAGERIAL DECISIONS AT THE FIRM LEVEL
 
7 Production Theory 243
 
8 Cost Theory 287
 
9 Production and Cost: Estimation and Forecasting 349
 
UNIT IV MANAGERIAL DECISIONS AT THE MARKET LEVEL
 
10 Market Structure and Business Organization 367
 
11 Pricing Decisions and Practices 414
 
UNIT V MANAGERIAL DECISIONS IN THE LONG RUN
 
12 Capital Budgeting and Investment Project Evaluation 451
 
13 Risk Analysis and Managerial Decisions under Uncertainty 487
 
14 Management Consultants and Information 546
 
APPENDIX 560
 
FURTHER READING 569
 
INDEX 573