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Boyes introduces non-majors to the power of economics in business decision making. The text’s intuitive approach clearly highlights how economics influences marketing, management, and other business-related decisions. In addition to traditional principles of price theory MANAGERIAL ECONOMICS examines organizational behavior, strategic management, human resource management, and emerging issues such as game theory, TQM, and information economics. MANAGERIAL ECONOMICS departs from convention to illustrate the role of economic intuition in making sound business decisions. While other texts focus on quantitative analysis, this book enphasizes logic and conceptual modeling -- reinforced by real-life examples -- to highlight the pivotal link between economics and key business concerns such as costs, prices, markets, and personnel. Students learn to weigh the strategic costs and benefits of each business choice, instead of relying on popular quick-fix solutions. Ideal for students in MBA programs and less quantitative courses, MANAGERIAL ECONOMICS demonstrates the power of economic insight on business decision making.
- The text has been reorganized to flow from the developed power of free markets into a discussion of market failures, then applied knowledge to the structure, organization, and operation of the firm. The analogies between a system of free markets and the firm are developed.
- CHAPTER 4: The Theory of the Firm. This is new material in the second edition.
- CHAPTER 5: Economic Profit. Some of the material from Chapter 3 of the first edition is incorporated into this Chapter 5 of the second edition. But the chapter devotes much more time to the intuition of profit than the first edition.
- CHAPTER 6: Strategic Formulation of Economic Profit. This chapter uses some of the material from the first edition Chapter 3 but then expands on how economic profit is measured and used.
- CHAPTER 7: Demand. Much of the material of the first edition Chapter 4 is used here.
- CHAPTER 8: Costs. Much of the material of the first edition Chapter 5 is used here.
- CHAPTER 9: Profit Maximization. The second edition focuses on shareholder vs. stakeholder theories. As in the first edition Chapter 6, profit maximization is discussed. The remaining material of Chapter 6, first edition, is incorporated into Chapter 10.
- CHAPTER 10: Mechanics of Profit Maximization. The graphical and algebraic illustrations of how firms select their price and quantity of output to offer for sale are presented in this chapter. How this occurs in different selling environments is examined. The golden rule of economic decision making, marginal revenue equals marginal cost, is derived.
- CHAPTER 11: Revenue Management: Price Strategies. The material of the first edition Chapter 8 is incorporated here.
- CHAPTER 12: Organization and Corporate Culture. Some material from the first edition Chapter 10 is used here. A lot of new information is presented in the second edition.
- CHAPTER 13: Minimizing Costs: Capital. Some of Chapter 9 from the first edition is included in this chapter. New material includes focus on capital costs.
- The role of democracy in a nation is compared to the use of a CEO in a firm.
- CHAPTER 14: Personnel and Compensation. Material from the first edition Chapter 11 is incorporated here.
- CHAPTER 15: The Knowledge Economy. Some of the material from the Chapter 9 first edition is used here, but much of the material is new.
- CHAPTER 16: The Grabbing Hand. Material from the first edition Chapter 15 is used here.
- CHAPTER 17: Internal Markets. This is new to the second edition.
- CHAPTER 18: Strategy Myths. This is new to the second edition.
- CHAPTER 19: Strategic Behavior: The Application of Games. Material from the Chapter 13 first edition is used here. Much material is new to the second edition.
- Chapter 20: Strategy. Some material from the first edition Chapter 13 is used here. Most of the material is new to the second edition.
- The second edition incorporates global issues throughout rather than having a separate chapter, as the first edition Chapter 14.
- Similarly the first edition Chapter 6 is incorporated throughout.
- The role of competition and firm strategies to inhibit competitors is developed.
- The comparison between the invisible hand and the grabbing hand – the strategy of using government to enhance a firm’s success is developed.
- CHAPTER 1: Introduction: Economics and Management The first and second editions are essentially the same. In the second edition there is added material on marginal analysis and costs and benefits.
- CHAPTER 2: The Power of Markets First edition material is incorporated into the second edition. The second edition does not explicitly examine demand and supply curves but focuses more on economic progress and success.
- “Looking at the results since 1800, there is no doubt that markets work to raise standards of living, increase freedom and lead to innovation and technological change. What are the characteristics of markets that lead to this result? Why can’t smart people running governments do the same thing without the temporary blips or downturns that occur with markets? In this chapter we examine how markets work. We look at successful nations and unsuccessful nations and attempt to draw out what factors lead to one result or the other.”
- CHAPTER 3: The Prime Directive – The second edition is a new chapter. This material was not available in the first edition.
- “Having defined the characteristics that cause markets to be successful, it is worth discussing cases where markets might not work quite so well. In this chapter some situations causing the market not to function as well as suggested in Chapter 2 are discussed -- cases such as externalities, public goods, and others. Examining these cases allows us to further discover the value of the prime directive: Look to the market first in attempting to understand why something is the way it is.”
- MANAGERIAL ECONOMICS departs from convention to illustrate the role of economic intuition in making sound business decisions. While other texts focus on quantitative analysis, this book enphasizes logic and conceptual modeling -- reinforced by real-life examples -- to highlight the pivotal link between economics and key business concerns such as costs, prices, markets, and personnel. Students learn to weigh the strategic costs and benefits of each business choice, instead of relying on popular quick-fix solutions. Ideal for students in MBA programs and less quantitative courses, MANAGERIAL ECONOMICS demonstrates the power of economic insight on business decision making.
2. The Power of Markets.
3. The Prime Directive.
4. The Theory of the Firm?
6. Strategic Formulation of Economic Profit.
9. Profit Maximization.
10. Mechanics of Profit Maximization.
11. Revenue Management: Price Strategies.
12. Organization and Corporate Culture.
13. Minimizing Costs: Capital.
14. Personnel and Compensation.
15. The Knowledge Economy.
16. The Grabbing Hand.
17. Internal Markets.
18. Strategy Myths.
19. Strategic Behavior: The Application of Games.
Cengage provides a range of supplements that are updated in coordination with the main title selection. For more information about these supplements, contact your Learning Consultant.
Online Instructor's Resource Manual
Instructor's Resource CD-ROM
Contains the resources an instructor will need to effectively teach from the text, including an Instructor’s Manual, a Test Bank, ExamView, and Lecture PowerPoint slides. All supplements have been thoroughly updated for the new edition. All resources are also available online with the exception of ExamView.
Economics CourseMate with eBook Instant Access Code
Economics CourseMate with eBook Instant Access Code
Cengage Learning's CourseMate brings course concepts to life with interactive learning, study, and exam preparation tools that support the printed textbook. Maximize your course success with the integrated eBook and chapter-specific learning tools that include flashcards, quizzes, videos, and more in your CourseMate. Key Features: Interactive eBook, Engagement Tracker, Learning Objectives, Tutorial Quizzes, Glossary and Flashcards, and Web Links and References.