Mark Hirschey, Ph.D. (University of Wisconsin-Madison), is Professor and Stockton Research Fellow in the School
of Business at the University of Kansas, where he teaches undergraduate and graduate courses in managerial economics
and finance. Professor Hirschey is president of the Association of Financial Economists and member of several professional
organizations. He has published articles in the American Economic Review, Journal of Accounting Research, Journal
of Business, Journal of Business and Economic Statistics, Journal of Finance, Journal of Financial Economics, Journal
of Industrial Economics, Review of Economics and Statistics, and other leading academic journals. He is editor
of Advances in Financial Economics, and past editor of Managerial and Decision Economics.
Summary
The seventh edition of this market-leading text continues its tradition of providing a solid foundation of economic
understanding for use in managerial decision making. It offers a practical treatment of economic theory and analysis
in an intutive, algebra-based format. Its focus is on presenting those aspects of economic theory and analysis
that are most relevant to students of business administration, and a wide variety of examples and simple numerical
problems are used to illustrate the application of managerial economics to a vast assortment of practical situations.
The nature of the decision process and the role that economic analysis plays in that process are emphasized throughout.
This major revision is designed to maximize accessibility for a student audience with little or no background in
economics or higher-level mathematics. The text focuses on the economics--not the mathematics--of the managerial
decision process.
Benefits:
NEW! New Topics: New topics in this edition include recent changes in economic census information and market
structure measurement (Chapters 10 & 11); recent moves to deregulate and re-regulate various types of private-market
activity (Chapter 13).
Numerical Examples and Data: Repeated use of simple numerical examples and real-world data provide concrete
illustrations of practical implications.
International Coverage: To increase student awareness of issues involving the increasingly global marketplace,
the text features a number of examples, Managerial Applications, and case studies that relate to global business
topics.
NEW! Expanded Coverage: Topics with enhanced coverage in this edition include strengths and weaknesses of forecasting
techniques (Chapter 6); how marginal analysis forms the basis of human resource management (Chapter 7); game theory
(Chapters 10, 11, & 14); the size-efficiency issue (Chapter 13).
NEW! Real Data: The text incorporates several new regression-based illustrations of chapter concepts using
actual company data, or data adapted from real-world situations. Like all aspects of the text, this material is
self-contained and intuitive.
NEW! Enhanced Clarity: Statistical Analysis, Demand Analysis and Estimation, Forecasting, and Pricing chapters
have been significantly revised to improve upon the clarity of explanation and to bring a sharper focus to the
material presented.
NEW! Real-World Applications: Each chapter now includes four "Managerial Applications" boxes to show
current examples of how the concepts introduced in managerial economics are actually used in real-world situations.
These features stimulate student interest in the material and offer a popular basis for classroom discussion. Many
"Managerial Applications" are based on articles from the Internet or Barron's, Business Week, Forbes,
Fortune, and The Wall Street Journal. All of these features highlight new applications for this edition.
NEW! Review Questions and Analytical Problems: All-new end-of-chapter questions and problems are featured in
this edition. Questions give students the opportunity to grasp basic concepts on an intuitive level and express
their understanding in a nonquantitative fashion. Problems cover a wide variety of decision situations and illustrate
the role of economic analysis from within a simple numerical framework.
NEW! Self-Testing: Each chapter includes two brand-new self-test problems to show students how economic tools
and techniques can be used to solve practical business problems. These self-test problems are a proven study aid
that greatly enhances the learning value of end-of-chapter questions and problems.
Integrative Approach: This text depicts the firm as a cohesive, unified organization. A basic valuation model
is constructed and used as the underlying economic model of the firm. Each topic in the text is then related to
an element of the value maximization model. In this process, management is seen to involve an integration of the
accounting, finance, marketing, personnel, and production functions. This integrative approach demonstrates that
important business decisions are interdisciplinary, and students see the presentation of the business firm as a
unified whole, rather than a series of discrete, unrelated areas.
Chapter-Ending Case Studies: Each chapter is accompanied by a "Case Study" that provides in-depth
treatment of chapter concepts. Some allow, but do not require, a computer-based approach.
Table of Contents
PART I: OVERVIEW OF MANAGERIAL ECONOMICS.
1. The Nature and Scope of Managerial Economics.
2. Basic Economic Relations.
3. Statistical Analysis of Economic Relations.
PART II: DEMAND ANALYSIS.
4. Demand and Supply.
5. Demand Analysis and Estimation.
6. Forecasting.
PART III: PRODUCTION AND COST ANALYSIS.
7. Production Analysis and Compensation Policy.
8. Cost Analysis and Estimation.
9. Linear Programming.
PART IV: MARKET STRUCTURE ANALYSIS AND ESTIMATION.
10. Perfect Competition and Monopoly.
11. Monopolistic Competition and Oligopoly.
12. Pricing Practices.
PART V: LONG-TERM INVESTMENT DECISIONS.
13. Government Regulation of the Market Economy.
14. Risk Analysis.
15. Capital Budgeting.
16. Public Management.
