Managerial economics

Cover
Dedication
Brief Contents
Contents
About the Authors
Preface
Part 1: Overview of Managerial Economics
	Chapter 1: Nature and Scope of Managerial Economics
		How Is Managerial Economics Useful?
		Theory of the Firm
		Profit Measurement
		Why Do Profits Vary among Firms?
		Role of Business in Society
		Structure of this Text
		Summary
		Questions
		Case Study: Is Coca-Cola the \'Perfect\' Business?
		Selected References
	Chapter 2: Economic Optimization
		Economic Optimization Process
		Revenue Relations
		Cost Relations
		Profit Relations
		Incremental Concept in Economic Analysis
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Spreadsheet Analysis of the EOQ at the Neighborhood Pharmacy, Inc.
		Selected References
		Appendix 2A: Maths Analysis for Managers
		Appendix 2B: Multivariate Optimization and the Lagrangian Technique
	Chapter 3: Demand and Supply
		Basis for Demand
		Market Demand Function
		Demand Curve
		Basis for Supply
		Market Supply Function
		Supply Curve
		Market Equilibrium
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Spreadsheet Analysis of Demand and Supply for Sunbest Orange Juice
		Selected References
Part 2: Demand Analysis and Estimation
	Chapter 4: Demand Analysis
		Consumer Decision-Making
		Indifference Curves
		Budget Constraints
		Individual Demand
		Optimal Consumption
		Demand Sensitivity Analysis: Elasticity
		Price Elasticity of Demand
		Price Elasticity and Marginal Revenue
		Price Elasticity and Optimal Pricing Policy
		Cross-Price Elasticity of Demand
		Income Elasticity of Demand
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Optimal Level of Advertising
		Selected References
	Chapter 5: Demand Estimation
		Interview and Experimental Methods
		Simple Demand Curve Estimation
		Simple Market Demand Curve Estimation
		Identification Problem
		Regression Analysis
		Measures of Regression Model Significance
		Judging Variable Significance
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Demand Estimation for Mrs. Smyth\'s Pies
		Selected Reference
	Chapter 6: Forecasting
		Forecasting Applications
		Qualitative Analysis
		Trend Analysis and Projection
		Business Cycle
		Exponential Smoothing
		Econometric Forecasting
		Judging Forecast Reliability
		Choosing the Best Forecast Technique
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Forecasting Global Performance for a Mickey Mouse Organization
		Selected Reference
Part 3: Production and Competitive Markets
	Chapter 7: Production Analysis
		Factors of Production
		The Short Run
		The Long Run
		Production Functions
		Input-Output Analysis
		Total, Marginal, and Average Product
		Law of Marginal Returns to a Factor
		Law of Diminishing Returns to a Factor
		Input Combination Choice
		Marginal Revenue Product and Optimal Employment
		Optimal Combination of Multiple Inputs
		Optimal Levels of Multiple Inputs
		Returns to Scale
		Productivity Measurement
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Worker Productivity among Giant US Corporations
		Selected References
		Appendix 7A: A Constrained Optimization Approach to Developing the Optimal Input Combination Relationships
	Chapter 8: Cost Analysis and Estimation
		Economic and Accounting Costs
		Role of Time in Cost Analysis
		Short-Run Cost Curves
		Long-Run Cost Curves
		Minimum Efficient Scale
		Firm Size and Plant Size
		Learning Curves
		Economies of Scope
		Cost-Volume-Profit Analysis
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Estimating Hospitalization Costs for Regional Hospitals
		Selected References
	Chapter 9: Linear Programming
		Basic Assumptions
		Production Planning for Multiple Products
		Graphic Specification and Solution
		Algebraic Specification and Solution
		Dual in Linear Programming
		Dual Specification
		Solving the Dual Problem
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: An LP Pension Funding Model
		Appendix 9A: Rules for Forming the Dual Linear Programming Problem
	Chapter 10: Competitive Markets
		Competitive Environment
		Factors That Shape the Competitive Environment
		Competitive Market Characteristics
		Profit Maximization in Competitive Markets
		Marginal Cost and Firm Supply
		Competitive Market Supply Curve
		Competitive Market Equilibrium
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Profitability Effects of Firm Size for DJIA Companies
		Selected References
	Chapter 11: Performance and Strategy in Competitive Markets
		Competitive Market Efficiency
		Market Failure
		Role for Government
		Subsidy and Tax Policy
		Tax Incidence and Burden
		Price Controls
		Business Profit Rates
		Market Structure and Profit Rates
		Competitive Market Strategy
		Long-Run Firm Performance
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: The Most Profitable S&P 500 Companies
		Selected References
Part 4: Imperfect Competition
	Chapter 12: Monopoly and Monopsony
		Monopoly Market Characteristics
		Profit Maximization under Monopoly
		Social Costs of Monopoly
		Social Benefits of Monopoly
		Monopoly Regulation
		Monopsony
		Antitrust Policy
		Competitive Strategy in Monopoly Markets
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Effect of R&D on Tobin\'s q
		Selected References
	Chapter 13: Monopolistic Competition and Oligopoly
		Contrast between Monopolistic Competition and Oligopoly
		Monopolistic Competition
		Monopolistic Competition Process
		Oligopoly
		Cartels and Collusion
		Oligopoly Output-Setting Models
		Oligopoly Price-Setting Models
		Census Measures of Market Concentration
		Summary
		Questions
		Self-Test Problems and Solutions
		Problem
		Case Study: Market Structure Analysis at Columbia Drugstores, Inc.
		Selected References
	Chapter 14: Game Theory and Competitive Strategy
		Game Theory Basics
		Prisoner\'s Dilemma
		Nash Equilibrium
		Infinitely Repeated Games
		Finitely Repeated Games
		Game Theory and Auction Strategy
		Competitive Strategy
		Pricing Strategies
		Nonprice Competition
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Time Warner, Inc. Is Playing Games with Stockholders
		Selected References
	Chapter 15: Pricing Practices
		Pricing Rules and Analysis
		Mark-Up Pricing and Profit Maximization
		Price Discrimination
		Price Discrimination Example
		Two-Part Pricing
		Multiple-Product Pricing
		Joint Products
		Joint Product Pricing Example
		Summary
		Questions and Answers
		Self-Test Problems and Solutions
		Problems
		Case Study: Pricing Practices in the Denver, Colorado, Newspaper Market
		Selected References
		Appendix 15A: Transfer Pricing
Part 5: Long-Term Investment Decisions
	Chapter 16: Risk Analysis
		Concepts of Risk and Uncertainty
		Probability Concepts
		Standard Normal Concept
		Utility Theory and Risk Analysis
		Adjusting the Valuation Model for Risk
		Decision Trees and Computer Simulation
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Stock-Price Beta Estimation for Google, Inc.
		Selected References
	Chapter 17: Capital Budgeting
		Capital Budgeting Process
		Steps in Capital Budgeting
		Cash Flow Estimation Example
		Capital Budgeting Decision Rules
		Project Selection
		Cost of Capital
		Optimal Capital Budget
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Selected References
	Chapter 18: Organization Structure and Corporate Governance
		Organization Structure
		Transaction Cost Theory of the Firm
		The Firm\'s Agency Problem
		Organization Design
		Decision Management and Control
		Corporate Governance
		Ownership Structure as a Corporate Governance Mechanism
		Agreements and Alliances among Firms
		Legal and Ethical Environment
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Case Study: Do Boards of Directors Make Good Corporate Watchdogs?
		Selected References
	Chapter 19: Government in the Market Economy
		Externalities
		Solving Externalities
		Public Goods
		Optimal Allocation of Social Resources
		Benefit-Cost Methodology
		Benefit-Cost Criteria
		Additional Methods of Improving Public Management
		Regulatory Reform in the New Millennium
		Health Care Reform
		Summary
		Questions
		Self-Test Problems and Solutions
		Problems
		Selected References
Appendix A: Compounding and the Time Value of Money
Appendix B: Interest Factor Tables
Appendix C: Statistical Tables
Index