A Text Book of Business Economics

PREFACE
The economic techniques have gained a wide application in the process of modem management decision, possible, because recent business problems have become so complex that manager's personal experience is no longer adequate to give an appropriate solution. The purpose of this book is to provide, in one volume, the different economic theories which are deemed to constitute the subject matter of managerial economics. This book is written especially for B.Com., B.B.A., M.Com., M.B.A., and c.A. students of our country.
This book is intended to explain in non-technical language, the economic concepts, tools of analysis, their relevance in management decision-making and also the influence of economic environment on management decisions. To facilitate an easy understanding of the subject, the timely help of illustrations, examr::es, diagrams, tables and charts has been taken, Important terms relevant to the business economics are given in a separate chapter. To my publisher, I am grateful for publishing the book with due care and skill in a very short time. I shall be thankful to the readers for pointing out discrepancies and errors in the text, which I hope to rectify in the next edition of the book. Suggestions for further improvement of this book will be highly appreciated.


CONTENTS
Preface iii
I. Introduction 1
2. Managerial Economist Role and Responsibilities 8
3. Concepts of Managerial Economics 15
4. Measurement Techniques of Marginal Economics 25
5. Important Terms used in Managerial Economics 36
6. Economic Theories 55
7. Production Theory 62
8. Consumer Behaviour 76
9. Indifference Curves Approach 84
10. Extension and Contraction Versus Increase and Decrease 105
in Demand
II. Elasticities of Demand 110
12. Empirical Studies on Demand 119
13. Demand Forecasting 126
14. Form of Market Structure 157
15. Perfect Competition 160
16. Implications of a Change in Demand for Commodity Under 173
Competition
17. Competitive Market Model 180
18. Dynamics of Supply: The Cobweb Phenomena
19. Pure Monopoly
20. Discriminating Monopoly
21. Bilateral Monopoly
22. Monopolistic Competition
23. Market Imperfection and Excess Capacity
24. Profit Decisions
25. Functions of Profit
26. Theories of Profit
27. Investments
28. Business Forecasting
29. Business Cycles
30. Theory of Trade Cycles