This course focuses on the application of economic models and rationale choice to business decision making. Topics include an overview of managerial economics; demand and supply; costs of production and the organization of the firm; market structure and pricing and output decisions; game theory and pricing strategies; and the economics of information and the role of government in the marketplace. The course consist fundamental principles of microeconomics most relevant to managers. Topics include costs, demand, pricing, market structure, market equilibrium, and strategic interaction. The course focuses on: (i) profit maximization by firms; and (ii) market equilibrium in different competitive settings. The course should enhance your understanding of how markets operate and develop your capability in making economic predictions about market outcomes. It should also serve as a foundation for your further studies in management, accounting, finance, and marketing. While the material is not too advanced, we move fairly quickly as is appropriate for master’s studies. Economists are model builders, as these facilitate careful analysis, and it is important to develop facility in working in this context. This capability comes through practice.

Learning Outcomes

• Students will be skilled in critical thinking and decision-making, supported by economic principles and best practices in business. 

• Students will have the ability to use data to inform economic and business decision making. 
• Students will be able to put together quantitative reports as well as to evaluate reports put together by others. 

• Students will be effective communicators, confidently using appropriate terminology in oral and written form. 
• Students will be able to comprehend economics-related writing. 

• Students will be able to work effectively in teams and to address strategic and organizational challenges.

• Recommended Books.

• Hirschey, M. and J.L. Pappas; Fundamentals of Managerial Economics, Dryden Press, (1998).
•  Kent P, and P Young., Managerial Economics: Economic Tools for Today’s Decision Makers., (4th edition) Pearson (2003).
• Mansfield E., (1998), Managerial Economics, Theory, Application and Cases. W. W. Nortion & co.
• Salvatore, D. Managerial Economics, McGraw Hill, (2001).