Managerial Economics 2e

A Problem-Solving Approach, International Edition Luke M. Froeb, Vanderbilt University Brian T. McCann, Purdue University 352pp Published by Cengage Learning, ©2010 Available Now £56.99

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Teach your MBA students how to use economics to solve business problems with this breakthrough text. Froeb/McCann's MANAGERIAL ECONOMICS: A PROBLEM SOLVING APPROACH, 2E, International Edition covers traditional material using a problem-based pedagogy built around common business mistakes. Models are used sparingly, and then only to the extent that they help students figure out why mistakes are made, and how to fix them.This edition's succinct, fast-paced presentation and challenging, interactive applications place students in the role of a decision maker who has to identify mistakes that reduce profits, and propose solutions to bring profits back up. The lively book provides an excellent ongoing reference for students pursuing business careers. New chapters and updates highlight mistakes that precipitated the financial crisis. With MANAGERIAL ECONOMICS, 2E, International Edition your students are taught to use economics to not only identify profitable decisions, but also how to implement them within an organization.Instructors remark,"The Froeb/McCann textbook is designed for decision makers. Each chapter provides logical steps to solve common but misunderstood business problems. The books candor and novelty make for easy, enjoyable reading."

Features

• STRONG, PROVEN, MBA-LEVEL PRESENTATION EMPHASIZES PROBLEM-SOLVING: Written specifically for the MBA-level managerial economics class, this book''s solid pedagogy teaches students to solve problems rather than simply learn models. Students connect economics to decisions made on the job. This book emphasizes fewer math and technical models, as well as fewer graphs and figures than traditional managerial economics texts, but provides a much stronger emphasis on today''s real business world.
• INTERACTIVE END-OF-CHAPTER MATERIAL PLACES STUDENTS IN ROLE OF DECISION MAKER: A variety of effective end-of-chapter applications present real business scenarios that give students the opportunity to resolve actual business problems and pursue the most profitable and rational decisions. Eight to 10 end-of-chapter scenarios for every chapter provide excellent choices for individual assignments, group projects, or class discussions.
• FIRST CHAPTER CLEARLY INTRODUCES BOOK''S SUBJECT MATTER: Students begin with a strong foundation and understanding of the managerial economics to follow as Chapter 1 overviews and introduces the principles with an emphasis on how economics impact today''s business decisions.
• HIGH LEVEL OF READABILITY ENSURES STUDENT COMPREHENSION: Both instructors using this text and reviewers agree that this edition offers a highly effective level of readability to make sure your students thoroughly understand concepts and how they apply before moving ahead. Succinct lessons present relevant theory in an accessible and compact way, while learning features enable students to clearly understand the theory and immediately apply it.

Preface: Teaching Students to Solve Problems.
Part I: PROBLEM SOLVING AND DECISION MAKING.
1. Introduction: What This Book Is About.
2. The One Lesson of Business.
3. Benefits, Costs, and Decisions.
4. Extent (How Much) Decisions.
5. Investment Decisions: Look Ahead and Reason Back.
Part II: PRICE, COST, AND PROFIT.
6. Simple Pricing.
7. Economies of Scale and Scope.
8. Understanding Markets and Industry Changes.
9. Relationships Between Industries: The Forces Moving Us Towards Long-Run Equilibrium.
10. Strategy, the Quest to Slow Profit Erosion.
11. Using Supply and Demand: Trade, Bubble, Market Making.
Part III: PRICING FOR GREATER PROFIT.
12. More Realistic and Complex Pricing.
13. Direct Price Discrimination.
14. Indirect Price Discrimination.
Part IV: STRATEGIC DECISION MAKING.
15. Strategic Games.
16. Bargaining.
Part V: UNCERTAINTY.
17. Making Decisions with Uncertainty.
18. Auctions.
19. The Problem of Adverse Selection.
20. The Problem of Moral Hazard.
Part VI: ORGANIZATIONAL DESIGN.
21. Getting Employees to Work in the Firm's Best Interests.
22. Getting Divisions to Work in the Firm's Best Interests.
23. Managing Vertical Relationships.
Part VII: WRAPPING UP.
24. You Be the Consultant.

• THE LATEST ECONOMIC UPDATES ADDRESS THE CURRENT ECONOMIC SITUATION WORLDWIDE: The latest economic information throughout this current edition keeps your course on the cutting edge of today''s ever-changing world economic developments. Students see the importance and power of managerial economics as they understand how the principles directly relate to recent economic and financial crises and events.
• NEW CHAPTER (CH. 11) ON USING SUPPLY AND DEMAND ALLOWS STUDENTS TO STUDY THE AFFECTS ON FOREIGN MARKETS AND TRADE: Now you can better equip students to make informed, profitable business decisions as this edition''s new chapter (Ch. 11) on Using Supply and Demand closely examines the market for foreign exchange, the purchasing power parity, effects of currency appreciation and devaluations, and bubbles.

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"The Froeb/McCann textbook is designed for decision makers. Each chapter provides logical steps to solve common but misunderstood business problems. The books candor and novelty make for easy, enjoyable reading."

Luke M. Froeb
Luke Froeb served as Chief Economist of the Federal Trade Commission for two years where he managed 75 economists who tore down barriers to competition (often erected by well-meaning bureaucrats) and enforced the antitrust and consumer protection laws of the United States. In July 2005 Professor Froeb returned to Vanderbilt University where today he holds the Margaret and William Oehmig Chair of Entrepreneurship and Free Enterprise. His students voted him outstanding professor of the 2005, 2006, and 2007 executive MBA programs. The first stage of his get-rich-slowly-scheme, MANAGERIAL ECONOMICS: A PROBLEM-SOLVING APPROACH was published in 2007 by Cengage Learning. Dr. Froeb's research focuses on the economics of competition policy. After earning his Ph.D. at the University of Wisconsin, he taught at Tulane University, worked at the U.S. Department of Justice, and spent a year at the University of Chicago Law School before teaching at Vanderbilt. When the antitrust agencies began using Froeb's merger models to predict the competitive effects of mergers, his academic articles became well read. Dr. Froeb received his undergraduate degree from Stanford University, and his Ph.D. from the University of Wisconsin.

Brian T. McCann
Dr. Brian T. McCann has taught courses in managerial economics, strategic management, and entrepreneurship at the undergraduate, MBA and executive education levels. He holds an MBA from Vanderbilt University where he earned the Founder's Medal as the top graduate of the class. Dr. McCann received his doctoral training in strategic management at Purdue University's Krannert School of Management where he was awarded the Ross Fellowship, the Krannert Certificate for Distinguished Teaching, and the Purdue Research Foundation Research Grant. His more than 10 years of industry experience include running a residential land development company, serving as the CFO for an Internet start-up, and implementing new strategic initiatives for a non-profit economic development group. In addition to co-authoring this MBA-level textbook in managerial economics, Dr. McCann's work has appeared or is forthcoming in journals such as Strategic Management Journal, Journal of Management, and Journal of Management Studies. His current research interests span strategic management and entrepreneurship and include the performance implications of firm agglomeration, the effects of ownership structure on competitive behaviors, and the role of threshold-based decision making in the entrepreneurial process.