Managerial Economics is a branch of economics that applies microeconomic analysis to specific business decisions. It serves as a bridge between abstract economic theory and managerial practices. The 6th Revised Edition of the book (e.g., by D. N. Dwivedi) offers a comprehensive exploration of economic concepts tailored to managerial needs.

This discipline assists managers in making strategic decisions related to pricing, production, investment, and risk analysis by utilizing tools such as demand forecasting, cost analysis, and optimization techniques. It also incorporates macroeconomic factors—like inflation, national income, and business cycles—that influence the business environment.

The book is structured into key parts:

Microeconomic foundations (demand, supply, production, cost)

Market structures and pricing strategies

Decision-making under uncertainty

Capital budgeting and investment analysis

Macroeconomic and international trade environment

Government policy and business regulation

Through case studies, real-world examples, and quantitative methods, Managerial Economics equips business students and professionals with the skills to make data-driven and economically sound decisions.

Includes bibliographical references and index.

Part I: Introduction
The Nature and Scope of Managerial Economics

Objectives of Business Firms

Some Decision Rules and Tools of Analysis

Optimization Techniques

Technique of Estimating a Function – Regression Analysis

Part II: Demand and Forecasting
Analysis of Individual Demand

Analysis of Market Demand & Demand Elasticities

Demand Forecasting

Part III: Production & Cost
Theory of Production

Theory of Cost and Break‑Even Analysis

Linear Programming

Part IV: Market Structures and Pricing
Market Structure and Pricing Decisions

Alternative Theories of the Firm

Pricing Strategies and Practices

Part V: Investment Decisions
Capital Budgeting and Investment Under Certainty

Investment Decisions Under Risk & Uncertainty

Part VI: Macroeconomic Environment
National Income: Concept & Measurement

Theory of National Income Determination

Modern Theories of Economic Growth

Business Cycles & Stabilization

Part VII: International Economics
Theory of International Trade

Trade Policy: Free Trade vs Protection

Exchange Rate Determination

Balance of Payments & Adjustment

International Monetary System

Part VIII: Government & Business
Role of Government in the Economy

Fiscal Policy: Taxation & Business

Monetary Policy

Industrial Policy of India

Selected Economic Legislations

Social Responsibility of Private Business

Managerial Economics is the application of economic theory and quantitative techniques to business decision-making. It helps managers make strategic and operational decisions by analyzing costs, revenues, market trends, and competitive behavior.

The book integrates microeconomic concepts with business practices, focusing on how firms can efficiently allocate resources, optimize production, and maximize profits under conditions of scarcity

eng.