Managerial Economics 5e cloth

The Fifth Edition of Managerial Economics heralds a new era for this classic text. Carrying on the tradition established by Edwin Mansfield in the book's earlier editions, Bruce Allen, Neil Doherty, and Keith Weigelt—all of the University of Pennsylvania's Wharton School—have prepared an exciting revision that capitalizes on proven strengths while embracing new developments in the field. Retaining a hallmark of Managerial Economics, the authors include a wealth of cases and applications that consistently anchor the exposition in the real world of business decision making. New to the Fifth Edition is a greater focus on applied microeconomics, with two new chapters, one on auctions and another on the principal-agent problems of firms. These new chapters, numerous new cases and applications throughout the book, and an exciting new package of electronic ancillaries promise to make the Fifth Edition of Managerial Economics the best yet.

W. Bruce Allenis professor of business and public policy, regional science, and transportation at the Wharton School of the University of Pennsylvania. Neil A. Doherty is Ronald A. Rosenfeld Professor and professor of insurance and risk management at the Wharton School of the University of Pennsylvania. Keith Weigelt is professor of strategy at the Wharton School of the University of Pennsylvania. Edwin Mansfield was a longtime professor of economics at the University of Pennsylvania. His textbooks have been a staple in economics courses at thousands of colleges and universities around the world.

PREFACE
Part One Introduction
　Chapter 1 Introduction to Managerial Economics
　　Boeing's Struggle to Retain Market Leadership
　　The Disney Corporation: Expansion of the Magic Kingdom
　　In What Size Production Runs Should Toyota Produce Its Cars?
　　Relationships of Managerial Economics to Other Disciplines
　　The Basic Process of Decision Making
　　The Theory of the Firm
　　The Role of Constraints
　　What Are Profits?
　　Reasons for the Existence of Profit
　　Organizational Factors and "Satisficing"
　　Analyzing Managerial Decisions: Shell Gains by Giving Safe-Driving Advice
　　Managerial Interests and the Principal-Agent Problem
　　Demand and Supply: A First Look
　　Analyzing Managerial Decisions: How Disney Dealt with the
Principal-Agent Problem
　　The Demand Side of a Market
　　The Supply Side of a Market
　　Equilibrium Price
　　Actual Price
　　What If the Demand Curve Shifts?
　　What If the Supply Curve Shifts?
　　How Russia Glutted the Aluminum Market: A Case Study
　　Concepts in Context: Problems in the Potato Market
　　Summary
　　Problems
　Chapter 2 Optimization Techniques
　　Functional Relationships
　　Marginal Analysis
　　Relationships between Total, Marginal, and Average Values
　　The Concept of a Derivative
　　How to Find a Derivative
　　Concepts in Context: The Allocation of the TANG Brand Advertising Budget
　　Using Derivatives to Solve Maximization and Minimization Problems
　　Marginal Cost Equals Marginal Revenue and the Calculus of Optimization
　　Analyzing Managerial Decisions: The Optimal Size of a Nursing Home
　　Concepts in Context: An Alleged Blunder in the Stealth Bomber's Design
　　Partial Differentiation and the Maximization of Multivariable Functions
　　Analyzing Managerial Decisions: The Effects of Advertising on the Sales of TANG
　　Constrained Optimization
　　Lagrangian Multipliers
　　Consultant's Corner: Planning to Meet Peak Engineering Requirements
　　Comparing Incremental Costs with Incremental Revenues
　　Summary
　　Problems
Part Two Demand and Forecasting
Part Three Production and Cost
Part Four Market Structure, Stratgeic Behavior, and pricing
Part Five Risk, Uncertainty, and Incentives
Part Six Government-Business Relations and the Global Economy
Appendix A Discounting and Present Values
Appendix B The Normal, t, and F Distributions