Managerial economics and business strategy / Michael R. Baye, Jeffrey T. Prince, Jay Squalli.

Contents;

Chapter 1 The Fundamentals of Managerial Economics
Headline: Amcott Loses $3.5 Million; Manager Fired
Introduction 2
The Manager 3
Economics 3
Managerial Economics Defined 3
The Economics of Effective Management 4
Identify Goals and Constraints 4
etc.


Chapter 2 Market Forces: Demand and Supply
Headline: Samsung and Hynix Semiconductor to Cut Chip Production 35
Introduction 36
Demand 36
Demand Shifters 38
Income 39
Prices of Related Goods 40
Advertising and Consumer Tastes 40
Population 41
Consumer Expectations 41
etc.

Chapter 3 Quantitative Demand Analysis
Headline: Winners of Wireless Auction to Pay $7 Billion 73
Introduction 74
The Elasticity Concept 74
Own Price Elasticity of Demand 75
Elasticity and Total Revenue 76
Factors Affecting the Own Price Elasticity 79
Available Substitutes 80
Time 82
etc.

Chapter 4 The Theory of Individual Behavior
Headline: Packaging Firm Uses Overtime Pay to Overcome Labor Shortage 117
Introduction 118
Consumer Behavior 118
Constraints 122
The Budget Constraint 123
Changes in Income 125
Changes in Prices 126
Consumer Equilibrium 128
Comparative Statics 129
etc.


Chapter 5 The Production Process and Costs
Headline: Boeing Loses the Battle but Wins the War 155
Introduction 156
xxii Contents
The Production Function 156
Short-Run versus Long-Run Decisions 156
Measures of Productivity 158
Total Product 158
Average Product 158
Marginal Product 158
The Role of the Manager in the Production Process 160
Produce on the Production Function 160
etc.

Chapter 6 The Organization of the Firm
Headline: Korean Firm Invests 30 Trillion Won to Vertically Integrate 202
Introduction 203
Contents xxiii
Methods of Procuring Inputs 204
Purchase the Inputs Using Spot Exchange 204
Acquire Inputs under a Contract 205
Produce the Inputs Internally 205
Transaction Costs 206
Types of Specialized Investments 207
Site Specificity 207
etc.

Chapter 7 The Nature of Industry
Headline: Microsoft Puts Halt to Intuit Merger 235
Introduction 236
Market Structure 236
Firm Size 236
Industry Concentration 237
Measures of Industry Concentration 238
The Concentration of U.S. Industry 239
Limitations of Concentration Measures 241
etc.

Chapter 8 Managing in Competitive, Monopolistic, and Monopolistic ally Competitive Markets
Headline: McDonald’s New Buzz: Specialty Coffee 264
Introduction 265
Perfect Competition 265
Demand at the Market and Firm Levels 266
Short-Run Output Decisions 267
Maximizing Profits 267
Minimizing Losses 271
The Short-Run Firm and Industry Supply Curves 274
Long-Run Decisions 275
Monopoly 277
etc.

Chapter 9 Basic Oligopoly Models
Headline: Crude Oil Prices Fall, but Consumers in Some Areas See
No Relief at the Pump 313
Introduction 314
Conditions for Oligopoly 314
The Role of Beliefs and Strategic Interaction 314
Profit Maximization in Four Oligopoly Settings 316
etc.

Chapter 10 Game Theory: Inside Oligopoly
Headline: USA irways Brings Back Complementary Drinks 350
Introduction 351
Overview of Games and Strategic Thinking 351
Simultaneous-Move, One-Shot Games 352
Theory 352
Applications of One-Shot Games 355
Contents xxvii
Pricing Decisions 355
Advertising and Quality Decisions 358
Coordination Decisions 359
Monitoring Employees 360
Nash Bargaining

Chapter 11 Pricing Strategies for Firms with Market Power
Headline: Mickey Mouse Lets You Ride “for Free” at Disney World 395
Introduction 396
xxviii Contents
Basic Pricing Strategies 396
Review of the Basic Rule of Profit Maximization 396
A Simple Pricing Rule for Monopoly and Monopolistic Competition 397
A Simple Pricing Rule for Cournot Oligopoly 400
etc.

Chapter 12 The Economics of Information
Headline: Firm Chickens Out in the FCC Spectrum Auction 433
Introduction 434
The Mean and the Variance 434
Uncertainty and Consumer Behavior 437
Risk Aversion 437
Managerial Decisions with Risk-Averse Consumers 437
Consumer Search 439
Uncertainty and the Firm 442
Risk Aversion 442
Producer Search 446
Profit Maximization

Chapter 13 Advanced Topics in Business Strategy
Headline: Barkley and Sharpe to Announce Plans at Trade Show 473
Introduction 474
Limit Pricing to Prevent Entry 475
Theoretical Basis for Limit Pricing 475
Limit Pricing May Fail to Deter Entry 477
etc.

Chapter 14 A Manager’s Guide to Government in the Marketplace
Headline: FTC Conditionally Approves $10.3 Billion Merger 507
Introduction 508
Market Failure 508
Market Power 508
Antitrust Policy 509
Price Regulation 513
etc.

Reference : p. 598-615 . _ Index : p. 616-636.