Both of these applied microeconomics textbooks are now in their fourth editions and are aimed at satisfying the needs of various markets/readers: undergraduate courses in economics and business studies as well as postgraduate courses in management (MBA). Essentially both books offer a "hands-on" approach to the application of economics to managerial decision-making.
Each chapter combines a mix of economic theory with a variety of new and updated case studies, real-world examples and exercises. The topics covered conform to the standard model of textbooks in this area, demand, production, costs, pricing and market structures as well as sections on risk and capital budgeting and government regulation. The economic concepts underpinning these topics are covered both graphically and using calculus, thus a basic grasp of calculus is a necessary prerequisite.
These books also have some new material. Edwin Mansfield includes a chapter on "Technological change and industrial innovation", an issue that is often overlooked in other texts, and an extended chapter on game theory. Craig Petersen and W. Cris Lewis develop the concept of shareholder value and offer new sections on managing risks. A key pedagogical feature of their book is the inclusion of an integrated case study at the end of each section of the book, an option that is also available in the study guide that accompanies Mansfield's book.
Indeed, both books offer an extensive package of ancillary information for both students and lecturers. Instructor's manuals, study guides and question banks are available with both books, as well as PowerPoint slides and spreadsheet exercises (Mansfield), and TOOLS software (Petersen and Lewis). The textbooks, along with these "add-ons", will prove invaluable for teachers who want to develop their students' ability to apply economic concepts strategically.
Andrew Robinson is lecturer in economics, Management Centre, University of Bradford .
Managerial Economics: Theory, Applications and Cases. Fourth Edition
Author - Edwin Mansfield
ISBN - 0 393 97315 8
Publisher - Norton
Price - £24.95
Pages - 671