Principles of Microeconomics

Abstract

Third, most textbooks that I am aware of are not tailored to the needs of a busi- ness school where students study economics, business administration and maybe law. Economics is about the functioning of institutions and most institutions have a legal backbone. Bringing this fact to the foreground creates synergies between law and economics. By the same token, economic theory allows one to identify the key parameters that a firm must know in order to be successful in the mar- kets in which they compete. Examining the common ground between management and economics allows one to better understand the implications of different market contexts and industries for managers and it shows one how closely economics and business administration can and should be linked. Economics, law and business administration are really three perspectives on the same phenomenon: the logic of social interaction.