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Visualize, for a moment, the industrial economy as a massive system of conveyor belts one that directs materials and energy from resource-rich countries to manufacturing powerhouses, such as China, and then spirits the resulting products onward to the United States, Europe, and other destinations, where they are used, discarded, and replaced. While this image is an exaggeration, it does capture the essence of the linear, one-way production model that has dominated global manufacturing since the onset of the Industrial Revolution. Industrial Economics is the study of firms, industries and markets. It looks at firms of all sizes - from local corner shops to multinational giants. And it considers a whole range of industries, such as electricity generation, car production and restaurants. The present book concentrates on the development of analytic principles in the subject, considering available statistical and descriptive evidence as appropriate.