This introductory text explains economic theories and concepts to the business student and shows how they can be effectively applied in a business context. By synthesizing traditional and modern economic theories of "the firm" alongside real-world examples, the book presents an analytical framework directly relevant to everyday business. A feature of the text is provided by applications which follow each chapter: short case studies accompanied by a number of questions and problems. Suitable for use in seminar discussions, or for self-evaluation on distance learning courses, these help illustrate difficult concepts and show how economic methodology can assist the business student in understanding the way business firms operate. This book relates economic theories to business practice in a clear, accessible way; and provides applications and questions at the end of each chapter - suitable for use in undergraduate seminars or for self-assessment by distance learning students. It is aimed at 2nd and 3rd year undergraduates in business, economics, business studies, accounting and other applied economics courses.--This text refers to an alternate Paperback edition.