Managerial economic

A Nearly appearance of this second edition has been made possible by an encouraging reception of its first edition. It gives me a welcome opportunity to thoroughly revise and enlarge the contents of the various chapters of the book. Although original structure of the book remains substantially the same as in the first edition, numerous qualitative and quantitati changes have been made in this edition. Part I has been almost rewritten. Many new sections and subsections have been added and the existing sections have been further elabora ted and made more comprehensive. The major additions made in the various chapters of the book include the following. In Chapter 2, the sections on the Types of Demand' and 'Determinants of Demand" have been enlarged to include some more types of demand and more determinants of demand deemed to be necessary from the business analysis point of view. The section on demand function has been rewritten with added emphasis on its usefulness in demand analysis. In Chapter 4, the section on the Production Function' has been further elaborated with the help of examples. Some other important production functions have been included with a brief description of their salient features. Besides, two new sections, 'Laws of Returns to Scale through Production Function' and the Effects of Changes in Input Prices on Input Combination' have been added to this chapter. In Chapter 5, the 'break-even analysis' has been enlarged to include the analysis under linear revenue and cost conditions and also an algebraic treatment of break-even output.

The matter of Chapter 7 of the first edition has been divided into Chapters 7 and 8 and reorganised. Chapter 7 deals with pricing theory including price discrimination. Its various sections have been provided with additional diagrams and explanations. Chapter 8 which has been now entitled as 'Pricing Policy and Practices' has been rewritten and considerably enlarged. It contains a brief discussions on why pricing practices in the real business world do not exactly conform to the price theory and also a comprehensive discussion on various kinds of pricing practices by different kinds of business. In this edition, new sections on 'transfer pricing', 'competitive price bidding' and 'pricing in relation to established products have been added.