The purpose of this book is to show how economic analysis and financial analysis can be used in formulating business policies. It is therefore a departure from the main stream of economic writings on the theory of the firm, much of which is too simple in its assumptions and too complicated in its logical development to managerially useful. The main purpose of this book (titled "Managerial Economics and Financial Analysis" (MEFA)) will be achieved if the B.Tech students of JNTU Ananthapur, for whom this is especially designed, could comprehend and actualize what has been discussed in this book.

This book draws upon economic analysis for the concepts of demand, cost, profit, competition, and so on, that are appropriate for decision and it draws upon modern methods of econometrics and market research for getting estimates of the relevant concept. It is necessary to comment briefly on the organization of the book.