This course presents economic principles that explain the operation of markets and firms and shows how economic reasoning can provide useful insights for practicing managers, particularly with regard to strategies for dealing with the firm’s business environment. Theories of consumer demand, the economic nature and function of business firms, optimal business decision rules, game theory, and economics of strategy, are presented. Efficiency criteria pertaining to the operation of firms and markets, the role of property rights, the scope for public policy, are also examined.