Microeconomic concepts and theories are widely applicable in managerial and business decision making. Managers of firms involved in producing goods and services have to make decisions on: What goods and services to produce? How to produce? Whom to produce? They have to determine prices of their product and make payment for the suppliers of the resources. The study of microeconomics helps managers to make decisions on these various issues.
Realizing this fact, Universities of the world introduce both micro and macroeconomics theories and principles in the undergraduate level of business studies. The present book Microeconomics is prepared as per the new syllabus on Microeconomics of Pokhara University for its esteemed four years BBA and BBA–BI program. This book is equally useful for BHM, BTTM, BCA and BCIS program of various universities. This is the second thoroughly revised edition of previous Microeconomics. We have explained each of the topics in great detail with illustrations. We have included numerical problems and their solution as well. We have added possible questions at the end of each chapter. As such we have tried to make the book student friendly. We hope the book will also be equally useful for BBA, BBIS and BBS program of other Universities because the theoretical concepts of microeconomics are universal.