Essentials of Managerial Economics: South-East Asian Edition, by Dominick Salvatore, edited by Suresh Narayanan and adapted by Rosilawati Amiruddin, Ismadi Ismail, Jamaliah Mhd Khalili and Arlinah Abdul Rashid, Oxford University Press, 2012, 419 pp.

Managerial economics, the application of economic methods in the managerial decision-making process, is a fundamental part of any business or management course. It is the science of directing scarce resources to manage cost effectively. Managers are charged with the task of maximising profits for their employers. Managerial economics, which is an outgrowth of microeconomic theory, analyses ways in which managers apply economic tools and techniques to make intelligent business decisions. This discipline studies how managers protect the interests of their firms by adopting management methodologies or applying game theory to assert control over external economic factors.