Managerial economics, used synonymously with business economics. It is a branch of economics that deals with the application of microeconomic analysis to decision-making techniques of businesses and management units. It acts as the via media between economic theory and pragmatic economics. Managerial economics bridges the gap between “theory and practice. There are plethora of books available in managerial economics most of them use complex to average student. The present book is written in simple language with illustrative examples. Most complicated theories such Law of variable proportions, law of diminishing returns etc. presented in simple table and graphs.