Over the past thirty years, the growing influcnce of microeconomics and industrial organization economics in every field of business analysis has transformed the role of managerial economics in business school curricula. Economists have understood for some time that every modern course in business strategy and organizational architecture must draw from key creas of advancement in microeconomics and industrial organization. While many business schools have been quick to adopt ?strategy? as a fundamental theme in their curricula, this new emphasis on strategy too often falls on the shoulders of a single, one-semester course in business strategy. In a single course, it is extremely difficult, if not impossible, to teach business students managerial economics anti cover all of the valuable topics in business strategy and organization. In any case, a thorough foundation in managerial economics is required in order to understand how to use the many new and important developments in microeconomics and industrial organization.