Cover -- Brief Table of Contents -- Contents -- Preface -- About the Authors -- Part I: Introduction -- Ch 1: Introduction and Goals of the Firm -- Chapter Preview -- What is Managerial Economics? -- The Decision-Making Model -- The Role of Profits -- Objective of the Firm -- Separation of Ownership and Control: The Principal-Agent Problem -- Implications of Shareholder Wealth Maximization -- Summary -- Ch 2: Fundamental Economic Concepts -- Chapter Preview -- Demand and Supply: A Review -- Marginal Analysis -- The Net Present Value Concept -- Meaning and Measurement of Risk -- Risk and Required Return -- Summary -- Part II: Demand and Forecasting -- Ch 3: Demand Analysis -- Chapter Preview -- Demand Relationships -- The Price Elasticity of Demand -- The Income Elasticity of Demand -- Cross Elasticity of Demand -- The Combined Effect of Demand Elasticities -- Summary -- Ch 4: Estimating Demand -- Chapter Preview -- Statistical Estimation of the Demand Function -- A Simple Linear Regression Model -- Using the Regression Equation to Make Predictions -- Multiple Linear Regression Model -- Summary -- Appendix 4A: Problems in Applying the Linear Regression Model -- Introduction -- Nonlinear Regression Models -- Summary -- Ch 5: Business and Economic Forecasting -- Chapter Preview -- The Significance of Forecasting -- Selecting a Forecasting Technique -- Alternative Forecasting Techniques -- Deterministic Trend Analysis -- Smoothing Techniques -- Barometric Techniques -- Survey and Opinion-Polling Techniques -- Econometric Models -- Stochastic Time-Series Analysis -- Forecasting with Input-Output Tables -- Summary -- Ch 6: Managing in the Global Economy -- Chapter Preview -- Introduction -- Import-Export Sales and Exchange Rates -- Outsourcing -- China Trade Blossoms.

The Market for U.S. Dollars as Foreign Exchange -- Determinants of Long-Run Trends in Exchange Rates -- Purchasing Power Parity -- International Trade: A Managerial Perspective -- Free Trade Areas: The European Union and NAFTA -- Largest U.S. Trading Partners: The Role of NAFTA -- Perspectives on the U.S. Trade Deficit -- Summary -- Appendix 6A: Foreign Exchange Risk Management -- Part III: Production and Cost -- Ch 7: Production Economics -- Chapter Preview -- The Production Function -- Production Functions with One Variable Input -- Determining the Optimal Use of the Variable Input -- Production with Multiple Variable Inputs -- Determining the Optimal Combination of Inputs -- A Fixed Proportions Optimal Production Process -- Measuring the Efficiency of a Production Process -- Returns to Scale -- Summary -- Appendix 7A: Production Economics of Renewable and Exhaustible Natural Resources, Advanced Material -- Renewable Resources -- Exhaustible Natural Resources -- Ch 8: Cost Analysis -- Chapter Preview -- The Meaning and Measurement of Cost -- Short-Run Cost and Product Functions -- Long-Run Cost Functions -- Economies and Diseconomies of Scale -- Summary -- Ch 9: Applications of Cost Theory -- Chapter Preview -- Estimating Cost Functions -- Break-Even Analysis -- Summary -- Part IV: Pricing and Output Decisions: Strategy and Tactics -- Ch 10: Prices, Output, and Strategy: Pure and Monopolistic Competition -- Chapter Preview -- Introduction -- Competitive Strategy -- Porter's Five Forces Strategic Framework -- A Continuum of Market Structures -- Price-Output Determination under Pure Competition -- Price-Output Determination under Monopolistic Competition -- Selling and Promotional Expenses -- Competitive Markets under Asymmetric Information -- Solutions to the Adverse Selection Problem -- Summary.

Ch 11: Price and Output Determination: Monopoly and Dominant Firms -- Chapter Preview -- Monopoly Defined -- Sources of Market Power for a Monopolist -- Price and Output Determination for a Monopolist -- The Optimal Markup, Contribution Margin, and Contribution Margin Percentage -- Regulated Monopolies -- The Economic Rationale for Regulation -- Summary -- Ch 12: Price and Output Determination: Oligopoly -- Chapter Preview -- Oligopolistic Market Structures -- Interdependencies in Oligopolistic Industries -- Cartels and Other Forms of Collusion -- Price Leadership -- The Kinked Demand Curve Model -- Avoiding Price Wars -- Summary -- Ch 13: Best-Practice Tactics: Game Theory -- Chapter Preview -- Oligopolistic Rivalry and Game Theory -- Analyzing Simultaneous Games -- The Escape from Prisoner's Dilemma -- Analyzing Sequential Games -- Business Rivalry as a Self-Enforcing Sequential Game -- Credible Threats and Commitments -- Mechanisms for Establishing Credibility -- Replacement Guarantees -- Summary -- Appendix 13A: Entry Deterrence and Accommodation Games -- Excess Capacity as a Credible Threat -- Precommitments Using Non-Redeployable Assets -- Customer Sorting Rules -- Tactical Insights about Slippery Slopes -- Summary -- Ch 14: Pricing Techniques and Analysis -- Chapter Preview -- A Conceptual Framework for Proactive, Systematic-Analytical, Value-Based Pricing -- Optimal Differential Price Levels -- Differential Pricing in Target Market Segments -- Pricing in Practice -- Summary -- Appendix 14A: The Practice of Revenue Management -- A Cross-Functional Systems Management Process -- Sources of Sustainable Price Premiums -- Revenue Management Decisions, Advanced Material -- Summary -- Part V: Organizational Architecture and Regulation -- Ch 15: Contracting, Governance, and Organizational Form -- Chapter Preview -- Introduction.

The Role of Contracting in Cooperative Games -- Corporate Governance and the Problem of Moral Hazard -- The Principal-Agent Model -- Choosing the Efficient Organizational Form -- Vertical Integration -- Summary -- Appendix 15A: Auction Design and Information Economics -- Optimal Mechanism Design -- First-Come, First-Served versus Last-Come, First-Served -- Auctions -- Incentive-Compatible Revelation Mechanisms -- Summary -- Ch 16: Government Regulation -- Chapter Preview -- The Regulation of Market Structure and Conduct -- Antitrust Statutes and Their Regulatory Enforcement -- Antitrust Prohibition of Selected Business Decisions -- Command and Control Regulatory Constraints: An Economic Analysis -- Regulation of Externalities -- Governmental Protection of Business -- The Optimal Deployment Decision: To License or Not -- Summary -- Ch 17: Long-Term Investment Analysis -- Chapter Preview -- The Nature of Capital Expenditure Decisions -- A Basic Framework for Capital Budgeting -- The Capital Budgeting Process -- Estimating the Firm's Cost of Capital -- Cost-Benefit Analysis -- Steps in Cost-Benefit Analysis -- Objectives and Constraints in Cost-Benefit Analysis -- Analysis and Valuation of Benefits and Costs -- The Appropriate Rate of Discount -- Cost-Effectiveness Analysis -- Summary -- Appendices -- Appendix A: The Time Value of Money -- Appendix B: Differential Calculus Techniques in Management -- Appendix C: Tables -- Appendix D: Check Answers to Selected End-of-Chapter Exercises -- Glossary -- Index.