Solution manual for Managerial Economics and Business Strategy 8th Edition by Michael Baye, Jeff Prince ISBN 0073523224 9780073523224

Part 1: Introduction to Managerial Economics

1. The Role and Method of Managerial Economics
   • The Economic Approach to Decision Making
   • The Role of Economics in Business
   • The Role of Models in Managerial Decision-Making

Part 2: Market Forces: Demand and Supply 2. Introduction to Demand and Supply Analysis

• Demand and Supply Curves
• Elasticity of Demand
• Factors that Shift Demand and Supply
• Price Determination

3. Consumer Behavior and Demand

   • The Theory of Consumer Choice
   • Utility and Indifference Curves
   • Price Elasticity of Demand

4. The Production Process and Costs

   • Production Functions
   • The Law of Diminishing Marginal Returns
   • Short-Run vs. Long-Run Costs
   • Economies of Scale

Part 3: The Theory of the Firm and Market Structure 5. Perfect Competition

• Characteristics of Perfectly Competitive Markets
• Profit Maximization in Perfect Competition
• Long-Run Equilibrium in Perfect Competition

6. Monopoly

   • Sources of Monopoly Power
   • Price Discrimination
   • Monopoly and Social Welfare

7. Monopolistic Competition and Oligopoly

   • Characteristics of Monopolistic Competition
   • Oligopolistic Markets and Game Theory
   • Collusion and Cartels
   • Strategic Behavior in Oligopoly

Part 4: Game Theory and Strategic Behavior 8. Introduction to Game Theory

• Key Concepts in Game Theory
• Nash Equilibrium
• Applications of Game Theory in Business Strategy

9. Strategic Behavior and Competitive Advantage
   • First-Mover Advantage
   • Competitive Strategy and Market Entry
   • Dynamic Competition and Innovation

Part 5: Pricing and Output Decisions 10. Pricing Strategies and Tactics – Price Discrimination – Two-Part Tariffs and Bundling – Price Skimming and Penetration Pricing

11. Pricing in Imperfect Markets
    • Monopolistic Pricing
    • Price Leadership and Collusion in Oligopolies

Part 6: Government and Business Strategy 12. Antitrust Policy and Regulation – The Role of Government in the Market – Antitrust Laws and Practices – Regulatory Policy and Its Effects on Firms

13. Public Goods and Externalities
    • The Economics of Public Goods
    • Externalities and Market Failure
    • Government Intervention and Policy Tools

Part 7: Advanced Topics in Managerial Economics 14. Risk Analysis and Decision Making – Risk and Uncertainty in Business Decisions – Decision-Making Under Uncertainty – Insurance and Hedging

15. Capital Investment Decisions
    • Investment Decision Criteria (NPV, IRR, etc.)
    • Cost of Capital and Financing