Managerial economics refers to the application of economic theory and the tools of analysis of decision science to examine how a firm can make optimal managerial decisions in the face of constraints. The text exhibits four unique features: First, it uses the theory of the firm as the unifying theme to examine the managerial decision-making process. Second, it takes a uniquely global view into managerial economics to reflect the internationalization of tastes, production, distribution and competition in the world today. Third, it introduces many new and exciting topics into the study of managerial economics, such as firm architecture, firm governance and business ethics; Porter's strategic framework and the evolution of the creative firm; electronic commerce and risk management, as well as international economies of scale, the virtual corporation, reengineering, benchmarking, the learning organization, and the digital factory. Fourth, it shows how firms actually reach managerial decisions in the world today with more than 122 real-world case studies (more than any other competitor), as well as 11 more extensive integrating cases studies at the end of each of the five parts of the text. Improvements to the 7th Edition include: · Every chapter has been revised to incorporate the effects of and lessons from the recent global financial crisis. · A new Chapter 2: Demand, Supply and Equilibrium Analysis to help refresh students on the principles of economic analysis they'll need to succeed in managerial economics. The chapter is optional and may be assigned or skipped, as the instructor prefers. · The instructor ancillary package has been greatly expanded and improved, especially for instructors teaching on-line or a hybrid lecture/on-line course. Ancillaries include editable PowerPoints, computerized test bank, on-line study guide, and more. All electronic ancillaries are available to adopters of the text in a format suitable for uploading into their learning management system (e.g., Blackboard, Moodle, Desire2Learn, and others). · Coverage of spreadsheets such as Microsoft Excel has been greatly expanded, with new appendices and spreadsheet-based problems to help students become more adept at using this critical tool. · Nearly one-third of the 122 Case Applications are brand new, while half of the remaining have been updated. Among the new Case Applications are: 1-7, the World Financial Crisis; 3-1, Management Across Countries; 7-7, Open Innovation at Proctor & Gamble; 10-10, The Most Innovative Companies in the World; 13-8, The Microsoft Antitrust Case; 13-11, Corporate Taxes Around the World. · Five longer "Integrating Case Studies" have been added, one at the end of each part: The Decade of Steve, Ford's Bet: It's a Small World After All, e-Books Rewrite Bookselling, How Silicon Valley Conquered the Carriers, and Phone Fight!