Managerial economics

Managerial economics is a subject which relates very closely to more directly practical business disciplines including management accounting, marketing and corporate strategy. Indeed. many economists would insist that in so far as these other subjects have sound theoretical foundations they are usually to be found in economics.

Nevertheless, the relationship between the different disciplines is often an uneasy one. Neverth Econom models they have often l were not ve often been used t originally i intended to provide prescriptions for managers, and yet for that purpose when translated into the other disciplines. To the mists they find that their beloved models are used for purposes for which of the economists chagrin of they were never intended and are then castigated for not fulfilling those purposes well. At the same time, economists have tended to sell themselves short in of in terms the potential practical usefulness of the subject by insisting on a very high degree of rigour, at the expense of usefulness. Marketing analysts and corporate strategists pick some of the key qualitative insights of the economic models, and flesh them out with a level of detail which managers can recognise, to produce a highly saleable product which the economists wish they had thought of themselves.

This book aims to show how managerial economic analysis can be of relevance to decision making, without attempting to make pretentious claims for its practical application, which would not bear scrutiny. In doing so it attempts to differentiate itself from other texts on the subjectal Economics syllabus for the Chartered Association of Certified Accountants. In the in a number of ways. The first, and most obvious, is that it covers the entirety of the Managerial second place, within the the specification of that syllabus and in consultation with the Chief Examiner, it has attempted to include material not usually incorporated into Managerial Economics textbooks written to date. This material includes subjects to be found in the marketing textbooks, like the marketing mix and decisions associated with it. It also includes an introduction to Porter's work on the structural analysis of industries, and an outline of the basic elements of corporate strategy. Linking in to that analysis is a treatment of the scope of the firm introduces the transactions cost framework of analysis, and its application to the theory of which intra the multinational enterprise.

This mix of material should make the book useful not just to ACCA students and lecturers but to those involved in a wide variety of courses. Undergraduates in Business Studies will find the book useful at either first or second year level. Post-experience courses such as the Master's in Business Administration or the Diploma in Management Studies should also find that while the material is suitable for students with no background in economics, it develops their knowledge to a level which is appropriate for a general management student at Master's level. Each chapter contains a list of self-test questions at the back, which should assist the student in checking that the vocabulary and some of the fundamental analytical issues have been grasped. There is also a question of examination standard at the end of each chapter, for which answers have been provided at the back of the book. There is also a set of answers from the latest Certified Accountants' examination paper.