Managerial Economics is an endless process of new puzzles, problems and dilemmas. This book simplifies the intricacies of business economics. Diagrams and illustrations are widely presented in easy to follow style. This book provides an introduction to the content and methods of both micro and macro-economic theories and its application in business. Both traditional topics like the nature and scope of managerial economics, five fundamental concepts, demand analysis, demand forecasting, market analysis, classical and Keynesian theories and current topics like LPG, EXIM policy, Balance of Payment problems are explained in great detail. Recent years are witnessed of pitched battles over the role of international trade in our economy. This book flies over this territory presenting a bird’s eye view. This book contain with Break-even analysis, capital budgeting etc., adding new topics besides extending the coverage of existing complex economic tools, policy and issues using algebraic treatment and graphic illustrations. The concepts and application of managerial economics are written to fill the void created by the non-availability of books on current economic and business scenario in this 21st century, which witnesses a spectacular change in business circle. Managerial economics is concerned with decision making at managerial level. This book presents the alternative theories of the behavior of the firm. The approach of the text is to first pose problems relating to the decision-making process and then seek answers. This book is primarily meant for U.G., and P.G. students and to those who prepare for competitive examinations