Managerial Economics, 7th Edition
December 2011, ©2012
In addition to its inclusion of real-world applications and problems, the 7th Edition has been revised to incorporate up-to-date coverage of international topics and e-commerce. This new edition continues to offer the framework and economics tools necessary to prepare students for better decision-making in a future managerial role.
SECTION I: Decisions within Firms 25
CHAPTER 2 Optimal Decisions Using Marginal Analysis 27
CHAPTER 3 Demand Analysis and Optimal Pricing 77
CHAPTER 4 Estimating and Forecasting Demand 128
CHAPTER 5 Production 190
CHAPTER 6 Cost Analysis 226
SECTION II: Competing within Markets 281
CHAPTER 7 Perfect Competition 283
CHAPTER 8 Monopoly 319
CHAPTER 9 Oligopoly 349
CHAPTER 10 Game Theory and Competitive Strategy 397
CHAPTER 11 Regulation, Public Goods, and Benefit-Cost Analysis 446
SECTION III: Decision-Making Applications 497
CHAPTER 12 Decision Making under Uncertainty 499
CHAPTER 13 The Value of Information 541
CHAPTER 14 Asymmetric Information and Organizational Design 581
CHAPTER 15 Bargaining and Negotiation 630
CHAPTER 16 Auctions and Competitive Bidding 668
CHAPTER 17 Linear Programming 707
Answers to Odd-Numbered Questions
• Decision making under uncertainty is a prominent part of Managerial Economics, 7e: Chapter 12 shows how decision trees can be used to structure decisions in high-risk environments. Chapter 13 examines the value of acquiring information about relevant risks, including optimal search strategies.
• Updated and Expanded Coverage of International Topics and Applications.
• New Application Feature: Business Behavior. The authors provide numerous assessments (based on cutting edge research findings) of real-world decision making behavior, noting the most common pitfalls to avoid.
• Updated applications. Applications and decision-making examples are central to this book. Many have been updated in this edition.
• Revised and Updated End-of-Chapter Problems.
o Pricing airline seats (Ch. 3)
o Producing auto parts (Ch. 5)
o Choosing between risky research and development projects (Ch. 12)
• Decision Making Under Uncertainty. Chapter 12 shows how decision trees can be used to structure decisions in high-risk environments. Chapter 13 examines the value of acquiring information about relevant risks, including optimal search strategies.
• Game Theory illuminates the firm's strategic choices. Game-theoretic principles are essential to understanding strategic behavior. An entire chapter (Chapter 10) is devoted to this topic.
• End-of-Chapter Spreadsheet Problems offer a powerful way of portraying economic decisions and finding optimal solutions. Spreadsheet problems are provided in 15 chapters.
• Real-world applications throughout the text.