Book excerpt: Managerial economics is the application of economic theory and quantitative methods (mathematics and statistics) to the managerial decision-making process. Simply stated, managerial economics is applied microeconomics with special emphasis on those topics of greatest interest and importance to managers. Offering a problem-solving approach to the study of managerial economics, this title aims to help business students develop analytical skills. It includes an extensive review of mathematical techniques and a chapter on the time value of money and capital budgeting.