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| W. Bruce Allenis professor of business and public policy, regional science, and transportation at the Wharton School of the University of Pennsylvania. Neil A. Doherty is Ronald A. Rosenfeld Professor and professor of insurance and risk management at the Wharton School of the University of Pennsylvania. Keith Weigelt is professor of strategy at the Wharton School of the University of Pennsylvania. Edwin Mansfield was a longtime professor of economics at the University of Pennsylvania. His textbooks have been a staple in economics courses at thousands of colleges and universities around the world. |
| PREFACE Part One Introduction Chapter 1 Introduction to Managerial Economics Boeing's Struggle to Retain Market Leadership The Disney Corporation: Expansion of the Magic Kingdom In What Size Production Runs Should Toyota Produce Its Cars? Relationships of Managerial Economics to Other Disciplines The Basic Process of Decision Making The Theory of the Firm The Role of Constraints What Are Profits? Reasons for the Existence of Profit Organizational Factors and "Satisficing" Analyzing Managerial Decisions: Shell Gains by Giving Safe-Driving Advice Managerial Interests and the Principal-Agent Problem Demand and Supply: A First Look Analyzing Managerial Decisions: How Disney Dealt with the Principal-Agent Problem The Demand Side of a Market The Supply Side of a Market Equilibrium Price Actual Price What If the Demand Curve Shifts? What If the Supply Curve Shifts? How Russia Glutted the Aluminum Market: A Case Study Concepts in Context: Problems in the Potato Market Summary Problems Chapter 2 Optimization Techniques Functional Relationships Marginal Analysis Relationships between Total, Marginal, and Average Values The Concept of a Derivative How to Find a Derivative Concepts in Context: The Allocation of the TANG Brand Advertising Budget Using Derivatives to Solve Maximization and Minimization Problems Marginal Cost Equals Marginal Revenue and the Calculus of Optimization Analyzing Managerial Decisions: The Optimal Size of a Nursing Home Concepts in Context: An Alleged Blunder in the Stealth Bomber's Design Partial Differentiation and the Maximization of Multivariable Functions Analyzing Managerial Decisions: The Effects of Advertising on the Sales of TANG Constrained Optimization Lagrangian Multipliers Consultant's Corner: Planning to Meet Peak Engineering Requirements Comparing Incremental Costs with Incremental Revenues Summary Problems Part Two Demand and Forecasting Part Three Production and Cost Part Four Market Structure, Stratgeic Behavior, and pricing Part Five Risk, Uncertainty, and Incentives Part Six Government-Business Relations and the Global Economy Appendix A Discounting and Present Values Appendix B The Normal, t, and F Distributions |
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