Managerial Economics, Geetika, Piyali Ghosh and Purba Roy Choudhury, Tata McGraw-Hill Education Private Limited, New Delhi, 2011, pages 632, Price Rs. 365.
Product diversification in any competitive market with the clients who are knowledgeable but less familiar with theoretical aspects poses a serious challenge. Managerial economics by Geetika, Piyali Ghosh, Purba Roy Choudhury takes up that challenge by explaining the theoretical aspects of economics in a conversational manner. The book is comprehensive, compact and designed to cater to the needs of anyone who wants to have a basic knowledge of economics, albeit identified target groups are working managers and aspiring managers.
Keeping the target group in mind, special attention was given to the chapters on the Theory of firm, Input Pricing, Money supply and Inflation which not only helps one to understand the business environment but also to have a basic economic background needed to take crucial decisions regarding company's future. While theoretical aspects has been explained mainly with the help of graphical interface, but additionally the use of mathematical analysis is also combined well with the theories for those who find it more convenient to understand various phenomena with the help of a set of equations. Keeping the beginners in mind, those who want to understand this mathematical analysis, all the essential mathematical tools used in managerial decisions have been explained in the appendix of the very first chapter.
An enormous emphasis has been given on the case studies on a wide range of issues which in turn testifies the complexity of theory as applicable to the real life firm activities. This exercise without any doubt has added a whole new dimension to this book. Careful selection of case studies helps a reader to understand the application of economic theory in practice. Moreover, a very unique feature of this book is a set of question which are designed and framed to satisfy the inquisitiveness of the reader while dealing with various real life issues. Nonetheless, the claim that these questions are drawn mainly from their vast experience of teaching also drives a reader to go deeper into the analysis to find the answers.
A set of question at the end of each chapter also tests reader's knowledge of the theory but less importance has been given on the mathematical problems. There is no doubt that inclusion of more quantitative problems would have benefited the readers who wants to go into deeper analysis and understanding.
FORE School of Management