- Class 40
- Practice 0
- Independent work 120
Lecturers and Associates
The course aims
Introduce students to the basic concepts of microeconomics and macroeconomics, development of economics and its laws and basic concepts of international economics.
(L1 – L15 = 20 x 2 hours = 40 hours of lectures) (S1 – S15 = 15 x 2 hours = 20 hours of seminars)
L1: Introduction to economics.
L2: Defining economics. Economic principles.
L3: Managerial economics and decision-making.
L4: Key measures and relations.
L5: Revenue, cost and profit.
L6: Breakeven analysis.
L4: Demand and price formation.
L5: Consumer theories.
L6: Costs and production.
L7: Economy of scope and related products.
L8: Market equilibrium and perfect competition model.
L9: Competition of enterprises and market structure.
L10: Business extension and value chain.
L11: Horizontal and vertical integration.
L12: Market regulations.
L13: Perfect competition in the short and long term.
L14: Monopolies. Oligopolies and cartels.
L15: Understanding macroeconomics.
L16: Production planning.
L17: National income and production.
L18: Economic growth and business cycle.
L19: International trade, exchange rates and international financial markets.
L20: Game theory and business strategy.
Topics for seminar classes:
S1: Managerial economics in different types of organizations.
S2: Revenue, cost and profit.
S3: Economic vs. accounting calculation of costs and profits. Functions of revenues, costs and profits.
S4: Effect of price changes. Marginal analysis. Shutdown rule.
S5: Basic determinants of demand. Modeling consumer demand.
S6: Demand forecasting. Elasticity of demand. Consumer decision-making in the short and long term. Price discrimination.
S7: Average cost curve. Long-term average cost and extent/scale. Product with marginal revenue and derived demand. Marginal input costs and economic rent.
S8: Productivity and learning curve.
S9: Transaction costs and limits of an enterprise. Cost centers vs. profit centers.
S10: Transfer price formation.
S11: Employee motivation.
S12: Assumptions of perfect competition model.
S13: Supply curve of enterprise and supply curve of market. Market equilibrium. Shift in demand and supply curves.
S14: Free market economy vs. collectivist economy.
S15: Effectiveness and fairness. Circumstances in which market legislation is desirable. Legislation for encouraging market power of sellers and buyers. Limitations of market legislation.
S16: Externalities. Market failure caused by imperfect information.
S17: Objectives and instruments of macroeconomics.
S18: Measuring economic activity of the economy. GDP. Price indexes. Measuring unemployment.
S19: Money, exchange rates and inflation. Deflationary and inflationary gap.
S20: Perfect information and imperfect information. Simultaneous and sequential games.
Baye, Michael and Prince, Jeff (2014), Managerial Economics and Business Strategy, 8th ed. McGraw-Hill/Irwin
Moss, D. (2007): A Concise Guide to Macroeconomics: What Managers, Executives, and Students Need to Know. Hartvard Business Press.
Samuelson, P. i Nordhaus, W. (2009): Economics. 19th edition. McGraw-Hill/Irwin.
Samuelson, W. F. i Marks, S. G. (2011): Managerial Economics. 7th edition. Wiley.
Stengel, D. (2011): Managerial Economics: Concepts and Principles. Business Expert Press
Minimum learning outcomes
- Evaluate basic terms and concepts of managerial economics.
- Evaluate basic knowledge on market structure.
- Determine the impact of increased competition and innovation on pricing.
- Compare basic principles of business management that affect profitability.
- Evaluate the impact of government and public policies on market supply and demand and economic developments.
Preferred learning outcomes
- Apply basic terms and concepts of managerial economics.
- Evaluate and apply adequate tools for the analysis of industry and market structure.
- Evaluate adequate tools and methods for determining the optimal price for the sale of products and services.
- Critically evaluate basic principles of business management that affect profitability.
- Critically evaluate the impact of government and public policies on market supply and demand and economic developments.