The book is suitable for undergraduate students studying a one-semester business economics course as part of a business degree. The book will also be appropriate for DMS students and MBA modules in economics. This book covers all of the mainstream ideas of business economics. This book fully integrates economic theory with business applications, explaining the relevance of the theory of business life and the real problems faced by firms and managers. The book takes the view that the economists view of the world helps us to understand the aspects of human behaviour which are the essence of business activity: production and consumption; that economics helps us make sense of the world in which we live.