The Fifth Edition of Managerial Economics heralds a new era for this classic text. Carrying on the tradition established by Edwin Mansfield in the book's earlier editions, Bruce Allen, Neil Doherty, and Keith Weigeltall of the University of Pennsylvania's Wharton Schoolhave prepared an exciting revision that capitalizes on proven strengths while embracing new developments in the field. Retaining a hallmark of Managerial Economics, the authors include a wealth of cases and applications that consistently anchor the exposition in the real world of business decision making. New to the Fifth Edition is a greater focus on applied microeconomics, with two new chapters, one on auctions and another on the principal-agent problems of firms. These new chapters, numerous new cases and applications throughout the book, and an exciting new package of electronic ancillaries promise to make the Fifth Edition of Managerial Economics the best yet.

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Economic decisions are at the heart and soul of modern business and almost every business process has been subjected to economic analysis. Much of this analysis is applied microeconomics, in one form or another. Recently the emphasis in managerial economics courses has swung towards business studies and this new edition reflects this shift. Two chapters on traditional topics have been dropped and new chapters have been intorduced on important and contemporary subjects.

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