- Class 40
- Practice 0
- Independent work 120
Lecturers and Associates
- PhD Robert W. Ridlon III, Lecturer
- PhD Robert Kopal, University College Professor
- Eric McDermott, Instructor
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) Lecture topics: 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.