This major new text provides comprehensive coverage of the topics taught in Business Economics courses on Economics and Business Studies degrees and MBA programmes. Recent theoretical developments in areas such as transaction costs, game theory and competitive strategy are incorporated with a fresh approach to demand analysis, costs, finance and investment. The text stresses the practical relevance of economic theory and makes extensive use of international examples. It concludes with a study of the airline industry, showing how the analytical techniques developed earlier can be brought together to gain important insights into a major international commercial activity.