Managerial Economics: A Mathematical Approach

608 Pages·2012·2.6 MB·English

by  M. J. Alhabeeb

MANAGERIAL
ECONOMICS

MANAGERIAL
ECONOMICS
A Mathematical Approach
M.J.ALHABEEB
L.JOEMOFFITT
IsenbergSchoolofManagement
UniversityofMassachusetts
Amherst,MA,USA
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LibraryofCongressCataloging-in-PublicationData:
Alhabeeb,M.J.,1954–
Managerialeconomics:amathematicalapproach/M.J.Alhabeeb,L.JoeMoffitt.
p.cm.
Includesbibliographicalreferencesandindex.
ISBN978-1-118-09136-4(cloth)
1.Managerialeconomics.I.Moffitt,L.Joe.II.Title.
HD30.22.A392013
338.5024(cid:3)658–dc23
2012023746
PrintedintheUnitedStatesofAmerica
ISBN:9781118091364
10 9 8 7 6 5 4 3 2 1
Good management is the art of making problems so interesting and their solutions so
constructivethateveryonewantstogettoworkanddealwiththem.
PaulHawken
Theessenceofmathematicsisnottomakesimplethingscomplicated,buttomakecom-
plicatedthingssimple.
S.Gudder
TherewasayoungmanfromTrinity,
Whosolvedthesquarerootofinfinity.
Whilecountingthedigits,
Hewasseizedbythefidgets,
Droppedscience,andtookupdivinity.
Anonymous
To
OurStudents
OurFamilies,and
Thememoryofourparents.
CONTENTS IN BRIEF
PREFACE xix
UNITI METHODOLOGICALPRELIMINARIES
1 QualitativeFundamentals 3
2 QuantitativeFundamentals 13
UNITII DECISIONSATTHECONSUMERLEVEL
3 TheoryofConsumerChoice 47
4 ConsumerDemand:TheoreticalAnalysis 103
5 ConsumerDemand:EmpiricalEstimation 160
6 ConsumerDemand:EconomicForecasting 200
UNITIII MANAGERIALDECISIONSATTHEFIRMLEVEL
7 ProductionTheory 243
vii
viii CONTENTSINBRIEF
8 CostTheory 287
9 ProductionandCost:EstimationandForecasting 349
UNITIV MANAGERIALDECISIONSATTHEMARKETLEVEL
10 MarketStructureandBusinessOrganization 367
11 PricingDecisionsandPractices 414
UNITV MANAGERIALDECISIONSINTHELONGRUN
12 CapitalBudgetingandInvestmentProjectEvaluation 451
13 RiskAnalysisandManagerialDecisionsunderUncertainty 487
14 ManagementConsultantsandInformation 546
APPENDIX 560
FURTHERREADING 569
INDEX 573