As it has evolved in undergraduate and graduate programs over the past half century, managerial economics is essentially a course in applied microeconomics that includes selected quantitative techniques common to other disciplines such as linear programming(management science), regression analysis (statistics, econometrics, and management science), capital budgeting(finance), and cost analysis (managerial and cost accounting). from our perspective as economists, we see that many disciplines in business studies have drawn from the core of microeconomics for concepts and theoretical support. For example, the economic analysis of demand and price elasticity can be found in most marketing texts. The division of markets into four types-perfect competition, pure monopoly, monopolistic competition, and oligopoly-is generally the basis for the analysis of the competitive environment presented in books on corporate strategy and marketing strategy.