1. Introduction 2.  The firm and Its Goals  3.  Supply and Demand 4.  Demand Elasticity 5.  Demand Estimation and Forecasting 6.  The Theory and Estimation of Production 7.  The Theory and Estimation of Cost 8.  Pricing and Output Decisions: Perfect Competition and Monopoly 9.  Pricing and Output Decision: Monopolistic Competition and Oligopoly 10.  Special Pricing Practices 11.  Game Theory and Asymmetric Information 12.  Capital Budgeting and Risk 13.  The Multinational Corporation and Globalization 14.  Government and Industry: Challenges and Opportunities for Today’s Manager 15.  Managerial Economics in Action

Integrated Running Case Every chapter begins and ends with a situation facing managers at Global Foods, Inc., a company competing in the beverage industry. By encapsulating the concepts with this integrated case, students will always know how the concepts apply to them. By following one company, in one industry, students are able to see how economic decision-making can be applied across the vast array of functional units within the same organisation. Reading Ease In order to avoid distractions, the authors have deliberately chosen not to use boxed or shaded section of stories scattered throughout the chapter. Global Applications At the end of each chapter, the authors have included a “Global Application,” so readers understand the global implications of the concepts and tools of managerial economic analysis. In this edition, more examples, both in the Global Application sections and in the main body of the chapter, are drawn from world growth markets such as China, India, Brazil, and Russia.

Excel Applications (Excel Apps) have been added for a number of the numerical and graphical illustrations used throughout the text. Excel Apps allow readers to turn the static figures and tables in the text into dynamic illustrations. In so doing, they will also strengthen students’ ability to use Excel–a critical skill in today’s job market. A series of Regression Excel Apps provide readers with a more detailed discussion of many of the topics in regression analysis touched on in Chapter 5. See the Excel apps listing on the back cover for further information about regression topic coverage in various chapters. A rewritten chapter on game theory and asymmetric information (Chapter 11). This was in response to user feedback asking for stronger intuition of this challenging topic. There is increased coverage of game theory and bargaining as well as a more in depth discussion of adverse selection and moral hazard.