Upon successful completion of this course, students are expected to be able to: explain economic optimization and its application to business decision-making; estimate demand functions and demonstrate the use of elasticity of demand to quantify the effect of changing market conditions on the firm’s sales; analyze production and cost analysis as a means for understanding the economics of resource allocation and employment; identify strategies to manage risk and uncertainty and how uncertainty may impact consumer and firm behavior; analyze market structures and how they affect to business decisions under perfect competition, monopolistic competition, oligopoly and monopoly; identify pricing strategy in business situation and how they affect to business decision.
This course provides students with a basic understanding of and an ability to apply economic theory and economic tools in managerial decision-making within all kinds of organizations under conditions of uncertainty in a global economy. Managerial Economics is the study of how to direct scarce resources in the way that most efficiently achieves managerial goals. The basic analytical techniques of managerial economics are identifying problems and opportunities, analyzing alternatives, and making optimal choices. These techniques are powerful tools for manager in firms who must make decisions in business functional areas of finance, marketing, productions and accounting. Students will have acquired the skills to identify and develop sound solutions for business economic problems in the areas of demand, supply, production, cost and pricing. Students will also conduct analytical analysis including how to make a business decision under different market structures and different customer behavior. Students will gain knowledge and understanding of how to price a product, benefits of advertising, optimal use of employees and material inputs for production, measuring profit margin, and business strategies for operating such as cost minimization versus profit maximization.
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