Managerial economics

It is indeed satisfying for an author to find that his book is running into third successive edition. At the same time, it is also challanging for the author to live upto the expectation of numerous and various readers. The subject-knowledge in Economics is explo ding very fast. It is a difficult task to take stock of that knowledge and then to help understanding, comprehension and application of that knowledge in real world business situation which is also growing complex day by day. As an author, I have tried my best to balance the presentation of advancing Economics knowledge and growing complexity of real world Business. In this thoroughly revised volume for example, there is an elaborate discussion on the Behavioural and Managerial Theory of Firm, Recent developments in Demand Theory, concept of economies of scope etc. More mathematical problems have been introduced to illustrate the complexity of busi ness world. In line with the text book tradition, many new questions, problems and cases have been added. It is hoped that such revisions would prove useful to the readers. After all, it is their valuable sug gestions or legitimate expectations which lie at the root of this revision which was long due. I am not in a position to acknowledge each and every reader; but I do acknowledge them collectively. May I also take this opportunity to acknowledge my friends from academic as well as business world who have helped me in a number of ways. I have freely used their academic expertise as well as business ex perience, as per my convenience, to improve the content of the present edition. However, acknowledgement is not to shun my own responsibility as an author for whatever errors or imperfections lie hereina