Managerial Economics and Strategy, 2/e

Preface

Successful managers make extensive use of economic tools when making important decisions. They use these tools to produce at minimum cost, to choose a price or an output level to maximize profit, and for many other managerial decisions including:

• How much to advertise.

• What strategies to use to compete with rival firms.

• Whether to sell several goods in a bundle for a single price.

• Whether to offer buy-one-get-one-free deals.

• How to design compensation contracts to provide appropriate incentives for employees.

• How to structure an international supply chain to take advantage of cross-country differences in production costs.

We show how to apply economic theory using actual business examples and real data. Our experience teaching managerial ...