Managerial EconomicsBack to Course Guide
The course presents the economic approach to managerial decision-making known as marginal or incremental analysis. Topics include demand, cost and market structure analysis, the economics of pricing, practices of incentives, and analyst’s tools used to evaluate supply and demand in an array of economic settings.
UPON COMPLETION OF THE COURSE, THE STUDENT WILL BE COMPETENT IN:
- Discussing the economics of effective management.
- Discussing the nature of supply and demand.
- Describing the role of supply and demand in organizational behavior.
- Recognizing the importance and nature of profits.
- Using the elasticity concept as a tool of managerial analysis.
- Discussing the relationship among price, price elasticity of demand, and changes in total revenue.
- Describing the marginal productivity theory of labor and its implications for effectively utilizing human resources in an enterprise.
- Relating the implications of production theory for cost theory.
- Distinguishing between returns to a variable factor, returns to scale, and returns to scope.
- Distinguishing between opportunity costs and historical costs.
- Analyzing various economic factors that influence decision making by an organization.
- Discussing the influence of market structure on a firm’s behavior and performance.
- Describing the model of perfect competition and its role as a benchmark in market structure and analysis.
- Discussing the nature of monopoly, monopolistic competition, and oligopoly.
- Relating pricing strategies to organizational behavior and profitability.
- Describing pricing strategies for special cost and demand structures and in markets with intense competition.
- Understanding how game theory is used by organizations in developing competitive strategies.
- Discussing the economics of information including risk and uncertainty and consumer behavior, markets with asymmetric information and auction markets.
- Describing the economic implications of various government regulations in the market place.