Principles of Managerial Economics

One standard definition for economics is the study of the production, distribution and consumption of goods and services. A second definition is the study of choice related to the allocation of scarce resources. The first definition indicates that economics includes any business, nonprofit organization or administrative unit. The second definition establishes that economics is at the core of what managers of these organizations do.This book presents economic concepts and principles from the perspective of “managerial economics,” which is a subfield of economics that places special emphasis on the choice aspect in the second definition. The purpose of managerial economics is to provide economic terminology and reasoning for the improvement of managerial decisions.