Students will gather, analyze and use macro and micro economic data to evaluate business problems and to achieve optimum decision making in the allocation of limited resources.
What Managerial Economics is All About
Managerial Economics provides you with the critical skills and practical analysis tools necessary to tackle business decision problems in the 21st Century. The primary approach taken in this course is the application of economic methods to business management practices. Managerial Econ differs markedly from your other Economics classes in three major ways.
First, the perspective is professional and business oriented. Although economics is a social science, we shall not focus on social issues or public policy such as poverty, unemployment, and welfare programs. We shall focus on evaluating business problems and achieving the optimum decision making in the allocation of limited resources.
A second important difference is that Managerial Econ emphasizes only those economic methods and tools most useful to managing a business firm in today’s marketplace. Macroeconomics will concern us because businesses are affected by the overall economy and policy related to business cycles, inflation, monetary and fiscal policy, interest rates, and taxes. We shall concentrate on precisely those methods that can help you excel at your workplace and advance you on your business career path.
The third difference between this course and your other economics courses is that students become hands-on practitioners, not mere spectators. The emphasis is on recognizing the economic aspects in everything and then attacking and solving the relevant decision-making problem using economic methods. We will work through situations involving such topics as production, cost, market behavior, and competitive strategies. To raise your skills to a professional practitioner’s level, you will delve deeply into the economic toolkit to master the powerful methods of analysis as well as explore the latest, exciting methods on the frontiers of economics.
To achieve this third goal we will use algebra and a bit of differential calculus. The examples we will use in class will provide a major foundation for all fields in business administration.
Introduction to Managerial Economics – Summarize Macroeconomic Activity
Discuss the Fundamentals of Managerial Economics
Analyze Demand and Supply
Discuss Demand Analysis
Evaluate Production and Cost Analysis
Analyze Managerial Compensation and the Principal Agent Problem – Discuss the Nature of Industry
Summarize Managing in Competitive and Monopolistically Competitive Markets
Basic Oligopoly Models
Pricing Strategies for Firms with Market Power
Evaluate Advanced Topic in Business Strategy