Logically explains and develops the link between business economics and strategy. This exciting major new book is the first text to bridge the gap between the mainly American 'traditional' theoretical texts and the more applied texts on business economics. It logically explains and develops the link between business economics and strategy. It uses real business problems to enable students to grasp the practical applications of theory. The final part of the book shows how the themes of business economics are linked to the issues facing real companies. A range of features in each chapter includes: objectives, introduction, mini-cases, cases, self-test or review questions, summary, references to further reading and a glossary of new terms.