This textbook is geared towards first-year students in business programs who seek a sound understanding of economic reasoning. The book adopts a straight-to-the-point approach that focuses on accessibility and concreteness.

The first part of the book explains how markets operate and how they are ultimately shaped by individual decisions of firms and consumers. It covers topics such as gains from trade and price formation in different market environments. Building upon that knowledge, the second part focuses on business decisions such as behaving strategically in the presence of competitors, making decisions under uncertainty, and dealing with asymmetric information.

Students who master the contents of this book will be at a significant advantage in understanding the “big picture” of business environments.

This third edition contains improved examples and slight adjustments in how some concepts are presented.

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