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Managerial Economics

Managerial Economics

  • Class 40
  • Practice 0
  • Independent work 120
Total 160

Course title

Managerial Economics

Lecture type

Obligatory

ECTS

6

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.

Content

(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.

Literature

Baye, Michael and Prince, Jeff (2014), Managerial Economics and Business Strategy, 8th ed. McGraw-Hill/Irwin

Supplementary literature

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

  • Vrednovati osnovne pojmove i koncepte menadžerske ekonomije.
  • Vrednovati temeljna znanja o strukturi tržišta.
  • Utvrditi utjecaj povećane konkurencije i inovacija na formiranje cijena.
  • Usporediti osnovna načela poslovnog upravljanja koja utječu na profitabilnost.
  • Objasniti utjecaj vlade i javnih politika na ponudu i potražnju na tržištu i ekonomski razvoj,

Preferred learning outcomes

  • Primijeniti osnovne pojmove i koncepte menadžerske ekonomije.
  • Valorizirati i primijeniti adekvatne alate za analizu industrije i strukture tržišta.
  • Valorizirati adekvatne alate i metode za utvrđivanje optimalnih cijena za prodaju proizvoda i usluga.
  • Kritički analizirati osnovna načela poslovnog upravljanja koja utječu na profitabilnost.
  • Kritički prosuđivati utjecaj vlade i javnih politika na ponudu i potražnju na tržištu i ekonomski razvoj.