a. Introduction to Course

Managerial Economics

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