The book teaches to apply Principles of Economics to business decision making. Its coverage includes topics like 'theory of firms', 'input pricing', 'Inflation'. The book is primarily intended for the introductory course in Financial Analysis at the B.tech., Level. In this book at the end of the each chapter essay type questions and Problems are added to develop a sense of confidence to the students. This book comprehensively covers the Managerial Economics and Financial Analysis course taken by the undergraduate engineering students of JNTU. The subject matter has been presented in a clear and easy language, with appropriate and contemporary examples.