This completely accessible, classroom-tested book focuses on the need for training in managerial economics to be more responsive to the presence of uncertainty surrounding managerial decisions. It takes a mathematical and statistical approach to microeconomics and provides the opportunity for quantitative methods to illustrate and clarify the underlying fundamental logic of problem solving. Filled with real-life examples and problems, it covers methodological and mathematical fundamentals; decisions at the consumer, firm, and market levels; decision and risk analysis; and decisions under uncertainty.
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.
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
FURTHER READING 569