Managerial Economics: Concepts and Principles

Economic thinking belongs in every manager’s toolkit.

Managerial Economics shows how sound economic reasoning leads to better business decisions across operations, marketing, finance, and strategy. Far from being an abstract academic exercise, economics provides a practical framework—and a shared language—for understanding how firms operate and compete within their markets.

This concise text applies core principles of microeconomics to real-world business decisions. Using clear conceptual models, it explains the essential relationships among price, cost, revenue, output, and profit, while introducing key ideas from consumer demand, production, market structure, and competition. The book also explores why firms grow, how large organizations can be structured more effectively, and when market regulation is necessary.

The second edition updates classic managerial economics with timely examples and emerging issues such as stakeholder capitalism, disruptive technologies, and industrial policy. Written with minimal mathematics and maximum clarity, Managerial Economics equips readers with practical insight into how businesses and markets function—and how they can function better.

Donald N. Stengel is a professor emeritus and chair emeritus of the Department of Information Systems and Decision Sciences in the Craig School of Business at California State University, Fresno. He received a PhD in Engineering-Economic Systems from Stanford University. Prior to joining the faculty at California State University, Fresno, Dr. Stengel worked for eight years as a management consultant developing planning models for agriculture and energy. Dr. Stengel has taught managerial economics, business forecasting, statistics, and quantitative methods at the graduate and undergraduate levels. He is a member of the Institute for Operations Research and Management Science (INFORMS) and the American Statistical Association (ASA).