Preface This edition of "Engineering and Managerial Economics" has been written in accordance with the syallabus prescribed by MTU noida, for B.Tech 3rd year all branches and MBA. However , it will also be useful for the students of other Technical Universities. This book provides all necessary information about Managerial Economics , An attempt has been made of this book to explain the various principles of Managerial Economics in easy, intelligible and lucid language. The subject matter has been presented in a simple and systematic manner. Attempts have been made for the students to familiarise them with the latest developments taking place in the theory as well as practice of Managerial Economics. I am thankful to Dr. Vihang Garg Chairman HIET,GBAD MS From University of Texas-USA , Dr. S.N.gupta Director General HIET GBAD IIT-BHU , Dr. G.S.Sandhu Director HIET GBAD, PhD IIT DELHI ,Dr. Rajesh Pathak HOD,CS Gniot, Greater Noida PhD University of Collins- USA , Dr. S.K.Gupta Director GNIOT IIT-BHU for their continued encouragement and co-operation during the preparation of manuscript. A WORD TO STUDENTS One of the primary objectives in writing this book is to provide you, the student, with a book that enhances your learning experience in managerial economics. However, the degree of success you achieve in your managerial economics course will depend, in large measure, on the effectiveness of your study. There is always a scope for improvement and we shall welcome the concrete suggestions to enhance the utility of the book.
DR. SHIVAM AGGARWAL
PUNEET KUMAR SAINI
Acknowledgement I wish to express my profound thanks to the people around me who helped to Make this book a reality. There was , in and always will be the love of my students whom I taught, for what is written in this book has been the fruit of experience that I taught them. Finally, My special thanks to my parents and to rest of my family for their patience and support during the long hours of writing this book. And above all there is the one almighty whose humble children we are. It his his blessings we cherish and pray for. It is the blessing I wish for you. I am extremely thankful to my friend Mr. Puneet Kumar Saini and Vayu Education publishers for doing his best in all aspects to publish this book. Dr. Shivam Aggarwal
Contents 1. INTRODUCTION ............................................................... 1-19 1.1 1.2 1.3 1.4