Synopsis Managerial Economics is "the application of economic theory and methodology to business administration practice." Managerial economics is micro-economic in character. Managerial economics largely uses that body of economic concepts and principles which is known as "Theory of the Firm" or Economics of the firm. Managerial economics belong to normative economics rather than positive economics. Macroeconomics is also useful to Managerial Economics since it provides in intelligent understanding of the environment in which the business must operate. This book is designed as an ideal text for professional courses like M.B.A, C.A, ICWA, ICS and M.Com.