In a clear and systematic manner, this textbook presents an exhaustive exposition of the various dimensions of industrial economics. The focus of the book is on understanding the behaviour of business firms under different market conditions. The concepts and tools of economic analysis relevant for business decision-making have been explained in detail. Both theoretical description and empirical research have been duly emphasized. Mathematical analysis has been used only where necessary for better clarity. Three new Appendices A-C and multiple choice questions (with answers) have been added in the current edition i.e., the Fifth edition. Salient features: Presentation of the subject in a natural way Thoroughly updated textbook Expanded discussion of industrial policy and capital market in India Econometric techniques for measurement of industrial efficiency Several topics like organizational and market structures, economics of scope and gravity index have been dealt in detail; this is an ideal textbook for both undergraduate and postgraduate students of economics, engineering, commerce and business management.