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Business Economics is concerned with the nature, scope and the functioning of business enterprises. The book synthesises traditional and modern economic concepts and tools of analysis to build a coherent analytical framework capable of dealing with questions of direct relevance to business. Business Economics uses real world examples and is enriched with case studies drawn from a variety of sources in the UK and other countries, from the small firm to the international corporation. A unique feature of this textbook is the inclusion of applications following each chapter. These case studies and the numerous questions and problems are designed to illustrate economic thinking, to assist business problem solving and to stimulate seminar discussions. This new edition adopts a more user-friendly approach, and has been thoroughly up-dated to incorporate important recent developments in business economics.