Managerial economics, 14th. ed.

• Main Author: Mark Hirschey, Eric Bentzen.
• Format: Book
• Language: English
• Published: Cengage Learning EMEA 2020
• Subjects: Economics
• Online Access: http://dspace.uniten.edu.my/jspui/handle/123456789/15323

Economic concepts show how to apply common sense to understand business and solve managerial problems. Economic intuition is really useful. It helps managers decide on which products to produce, costs to consider, and prices to charge. It also helps them decide on the best hiring policy and the most effective style of organization. Students and future managers need to learn these things. The topics covered in managerial economics are powerful tools that can be used to make them more effective and their careers more satisfying. By studying managerial economics, those seeking to further their business careers learn how to more effectively collect, organize and analyze information. A key feature of this book is its depiction of the firm as a cohesive organization. Effective management involves an integration of the accounting, finance, marketing, personnel, and production functions. This integrative approach demonstrates that important managerial decisions are interdisciplinary in the truest sense of the word. Although both microeconomic and macroeconomic relations have implications for managerial decision making, this book concentrates on microeconomic topics. Following development of the economic model of the firm, the vital role of profits is examined. Because economic decision making often requires an elementary understanding of optimization techniques and statistical relations, those basic concepts are described early in the text. Because demand for a firm's products plays a crucial role in determining its profitability and ongoing success, demand analysis and estimation is an essential area of study. An important part of this study is an investigation of the basic forces of demand and supply. This naturally leads to discussion of economic forecasting and methods for assessing forecast reliability. Production theory and cost analysis are then explored as means for understanding the economics of resource allocation and employment. Once the internal workings of a successful firm are understood, attention can turn toward consideration of the firm's external economic environment. Market structure analysis provides the foundation for studying the external economic environment and for defining an effective competitive strategy. The role of government in the market economy, including the constraints it imposes on business, requires a careful examination of regulation and antitrust law. Risk analysis and capital budgeting are also shown as methods for introducing marginal analysis into the long-range strategic planning and control process. Finally, given government's increasing role in managing demand and supply for basic services, such as education and health care, the use of economic principles to understand and improve public management is also considered. Managerial Economics, 14th Edition, takes a practical problem-solving approach. The focus is on the economics—not the mathematics—of the managerial decision process. Quantitative tools are sometimes employed, but the emphasis is on economic intuition.