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This unique text explains the relevancy of economics by applying theory to real-world business situations, showing students how to use microeconomics to understand and make decisions in the business world. Basic theory is solidly developed and illustrated with numerical problems, graphs, tables, and boxed references within each chapter. Four hundred end-of-chapter problems help develop analytical skills and show students how to think like economists and analyze economic/business problems. Topics include supply and demand analysis in output and input markets; applications of the monopoly model; several discusssions of competitive pressures and pricing; and how to make decisions under uncertainty or when information is incomplete.