Managerial Economics

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.