MANAGERIAL ECONOMICS By Alex Barkers-Okwan BUS 211 MANAGERIAL ECONOMICS By Alex Barkers-Okwan

Course Detail This module will present a framework for business decision making analysis through the use of micro-economics concepts and theories. It applies economic principles to decision making and considers how these change in a variety of competitive environments and business types. In addition, the student should gain an understanding of analytical aspects of general economic environment and how these can be used to optimize business profit.

Structure of Module Module will consist of Presentations Tutorials Assignments and Examination Official Textbook Christopher R Thomas 9th Edition

Module Activity Detail Lecture 1-Managers, Profits & Markets Learning Outcomes: What is managerial economics? How does it affect the decision made by firms e.g in increasing price, increasing output, reducing labor or increasing capital Understand the application of microeconomic theory to solve business problems

Lecture 2- Demand, Supply & Market Equilibrium Learning Outcomes The way market for consumer goods and services function Basic functions that apply to markets for resources such as land,labor,capital Supply and Demand analysis in competitive markets

Lecture 3-Elasticity and Demand Learning Outcomes; Importance of Elasticity Analysis of Price Elasticity and its effects on consumers Depict the relationship between price elasticity and TR of firms Look at other concepts such as income elasticity and cross price elasticity

Lecture 4- Production and Cost in the Short Run Learning Outcomes; Looking at concerns in production cost e.g how new technology or new supplies can help reduce cost Learning about the essence of theory of production e.g how the structure of a firms cos is determined by the nature of production process

Lecture 5- Production and Cost in the Long Run Learning Outcomes; Long run analysis of cost Characteristics of isoquants Understanding Marginal Rate of Technical Substitution Characteristics of isocosts

Lecture 6- Profit Maximization in various market structures Learning Outcomes; Discuss how much firms must produce and what price to charge Discuss how price taking firms or perfectly competitive firms make production decisions to maximize profit. Look at characteristics of both competitive and price taking firms

Lecture 7-Managerial Decisions for firms with Market Power Learning Outcomes; Focus on firms that are price markers Looks at downward sloping curves and its market power to set prices, choose output and input to maximise firm prices Looks at firms with market power and competitors reactions when price of a good is increased how will affect profits Look into Oligopolies

Lecture 8- Strategic Decisions in Oligopoly Markets Learning Outcomes; How does reduction in price of an oligopoly affect profits and what will be the reactions from competitors e.g a price war Investigate the strategic behavior by firms Using different game theories to make profits e.g prisoners dilemma

Final Preparations for exams How to answer examination question Different strategies to do well on the course

Topic 1-Managers, Profits & Markets What is managerial economics?? What is microeconomics??? What is opportunity costs??? What is economic profit??? What is the principal agent problem???