Managerial Economics, 8ed, (An Indian Adaptation)

Part 1 The Firm and Its Environment

1 Introduction, Basic Principles and Methodology

1.1 Managerial Decisions and Principles in Today’s Economy

1.2 Economists and the Application of Managerial Economics

1.3 Our Approach to Problem Solving

1.4 Organization of this Book

1.5 Review of Basic Demand and Supply Analysis

1.6 Carryover to Analysis of Other Markets

2 Revenue of the Firm

2.1 Advertising, Consumer Demand and Business Research

2.2 Demand and Revenue Concepts

2.3 Determinants of Demand

2.4 A Note on Determinants of Supply

2.5 Elasticity of Demand

3 Demand Analysis and Estimation

3.1 Market Surveys

3.2 Demand Estimation with Regression Analysis

3.3 Market Experiments

4 Economic Forecasting

4.1 Types of Economic Forecasts

4.2 Two Major Kinds of Data

4.3 Factors Affecting Economic Variables

4.4 Forecasting Methods

4.5 Accuracy of Forecasts

Part 2 Production, Cost and Profit Maximization

5 Production Analysis

5.1 The Production Function and the Long Run

5.2 Product Curves and The Short Run

6 Cost of Production

6.1 Types of Costs

6.2 Costs in the Long Run

6.3 Costs in the Short Run

6.4 Relationship of Short-Run Cost Curves to Short-Run Product Curves

6.5 Relation of Short-Run to Long-Run Average Costs

6.6 The Learning Effect

6.7 Economies of Scope

6.8 Choosing the Optimal Plant Size: An Example

6.9 Estimation of Cost

7 Profit Analysis of the Firm

7.1 Profit Maximization

7.2 Shutdown Point

7.3 Breakeven Analysis

7.4 Profit Maximization Versus Breakeven Analysis

7.5 Incremental Profit Analysis

7.6 Producer’s Surplus

Part 3 Markets and The Behavior of The Firm

8 Perfect Competition and Monopoly: The Limiting Cases

8.1 Perfect Competition and Its Setting

8.2 Monopoly and Its Setting

9 Monopolistic Competition and Oligopoly

9.1 Monopolistic Competition: A Case of Many Firms

9.2 Duopoly: An Oligopoly with Two Firms

9.3 The Question of Entry

9.4 The Kinked Oligopoly Demand Curve:

9.5 Tacit Collusion and Price Leadership

9.6 Perfect Collusion—The Cartel

9.7 Production with Multiple Plants

9.8 Product Market Structures: Recap and Comparison

10 Games, Information, and Strategy

10.1 Strategy and Types of Games

10.2 Some Game Theory Examples

10.3 Multiple Equilibria, Sequencing and First-Mover Advantage

10.4 Cooperative Games

10.5 Repeated Games

10.6 Trees and Sequential Games

10.7 Decision Making and the Economics of Information

10.8 Moral Hazard

10.9 Signaling

11 Topics in Pricing and Profit Analysis

11.1 Markup Pricing

11.2 Decisions Involving Multiple Products

11.3 Price Discrimination

11.4 Two-Part Pricing (Access Fees)

11.5 Bundling

11.6 Alternatives to Profit Maximization

12 Factor Markets and Profit-Maximizing

12.1 Profit-Maximizing Employment of One Variable Input

12.2 Determination of Equilibrium Prices for Inputs: Perfect Competition in the Input Market

12.3 Determination of Equilibrium Prices for Inputs: Monopsony in the Input Market

12.4 Determination of Equilibrium Prices for Inputs: Bilateral Monopoly in the Input Market

Part 4 Analysis of Project Decisions

13 Fundamentals of Project Evaluation

13.1 Capital Budgeting and Project Analysis

13.2 Costs in New Undertakings

13.3 Stream of Receipts or Returns

13.4 A Simple Capital Project Analysis

13.5 Project Yield or Rate of Return

13.6 Project Ranking in Capital Budgeting Analysis

13.7 Cost of Capital and the Discount Rate

14 Risk in Project Analysis

14.1 Certainty Versus Risk

14.2 Risk in Economic Analysis

14.3 Risk-Return Indifference Curves

14.4 Probability and Uncertainty

14.5 Application of Probability Analysis to Risk

14.6 Evaluating Risky Streams of Receipts

14.7 Probability Approach to Multiple Project Alternatives

14.8 Acceptable Shortcuts to Risk Analysis

14.9 Externalities and their Nature

Part 5 The Firm and The Public Sector

15 Economics of Public Sector Decisions

15.1 Micro- Versus Macroeconomics in Public Sector Analysis

15.2 The Public Sector’s Product

15.3 Resource Allocation and the Supply of Public Goods

15.4 Cost-Benefit Analysis: A Procedural Outline

15.5 Public Investment and the Discount Rate

15.6 Cost-Benefit Analysis and Divergent Public Objectives

15.7 Pitfalls of Cost-Benefit Analysis

15.8 The Future of Cost-Benefit Analysis

16 Legal and Regulatory Environment of the Firm

16.1 Managers and the Law

16.2 Types of Law Affecting the Firm

16.3 Antitrust and Business Practices Laws

16.4 Administrative Agencies and the Law

16.5 The Regulated Industries

16.6 Whose Interests do Regulators Serve?

16.7 Regulation of “Unregulated Industries”

16.8 Laws, Regulations, and ahe Firm’s Strategy

16.9 Recent Impactful Regulatory Issues from Around the World

Summary

Questions

Glossary

Index