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Managerial Economics and Business Strategy, 4/e
Michael Baye, Indiana University - Bloomington

The Fundamentals of Managerial Economics

Chapter Summary

This chapter introduces the new student to economics and reviews the basics for those students who have previously taken an economics course. Several definitions and six basic principles of management from an economist's point of view open the chapter. Next, students are taken through a quick synopsis of how different players' self-interest and interactions determine market outcomes. Present value analysis is used to address the profit maximization problem of the firm. A brief overview of marginal analysis is followed by a suggested mode of studying economics.