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This book is especially prepared for MBA, PGDM, M.COM, MFC and other equivalent courses as per the UGC Model Curriculum. This book presents in -depth analysis of topics. This book presents in-depth analysis of topics. This edition explains the crucial role of capital formation in economic growth and the factors that determine it. This book makes exhaustive study of managerial and behavioral models of the firm and managerial decision making under risk and uncertainty. We have incorporated in the present book both the micro and macro-economic aspects of managerial economics.