Managerial economics has assumed a predominant role in today's globalized and liberalized economy because of the financial implications of many decisions that a manager has to take in his day-to-day professional life. This comprehensive and student friendly book, now in its second edition, strives to equip the young, practising and budding managers to find solutions to the real world problems through the efficient and effective use of economic tools and techniques. The authors who admirably combine academic and professional experience give a clear and straightforward analysis of the various topics in managerial economics. The text begins with an overview of managerial economics and describes the modern business firm and its objectives along with the concepts of market mechanism, demand theory and production analysis. The text then moves further to explain managerial techniques, macroeconomic theory and international trade and finance along with the risks and uncertainties involved in business. Besides, t also explains the cost and revenue, supply, pricing, profit and investment analyses. Finally, this book discusses some important case studies to reinforce the concepts presented in the text. In this edition, a new section on eleventh five year plan (2007-2012) has been included to enhance the utility of the book. Intended as a text for postgraduate students of management, commerce and economics, the book would also be useful for undergraduate engineering courses where managerial economics is offered. Finally, the book can be profitably used by marketing and management consultants, business executives and other related professionals.