Managerial Economics
UNIVERSITY OF GUYANA
FACULTY OF SOCIAL SCIENCES
DEPARTMENT OF ECONOMICS
ECN 213 - MANAGERIAL ECONOMICS
COURSE OUTLINE
SUMMER - 2010
LECTURER: Roger Rogers
E-mail: rogers.roger@gmail.com
INTRODUCTION
Managerial Economics provides a foundation of economic understanding for use in managerial decision-making. Both microeconomic and macroeconomic relations have implications for this decision-making process. Since the demand for a firm’s products plays a major role in determining its profitability and ongoing success, demand analysis and estimation are essential areas of study. This entails an investigation into demand and supply and naturally leads to a discussion of economic forecasting and methods forecast reliability. Production theory, cost analysis and linear programming techniques are also explored as means for understanding the economics of resource allocation and employment.
A good background in ECN 1100, ECN 1200, ECN 1110 / MNG 1110 and ECN 1230 is required.
COURSE CONTENT
Week 1
Definition and scope of Managerial Economics. Indifference – Curve analysis of consumer behaviour. Attribute approach to consumer choice. The demand function and the demand curve. Elasticity of demand.
Week 2
Estimation of the demand function. Interviews, surveys and experiments. Regression analysis of consumer demand. Demand forecasting.
Week 3
Production and cost analysis. Linear programming applications.
Week 4
Cost estimation and forecasting. Short run cost estimation. Long run cost estimation. Cost forecasting.
Week 5,6
Market structure analysis. Model of the firm’s pricing decisions. Basic market forms. Price takers, price makers. Price making in oligopolies with mutual dependence recognized. Pricing for long-term objectives.
Week 7
Setting the initial price for a new product. Adjusting price over time.
Mid-Semester Test (30 marks).
Week 8
Types of competitive bids and price quotes. Competitive bidding
FACULTY OF SOCIAL SCIENCES
DEPARTMENT OF ECONOMICS
ECN 213 - MANAGERIAL ECONOMICS
COURSE OUTLINE
SUMMER - 2010
LECTURER: Roger Rogers
E-mail: rogers.roger@gmail.com
INTRODUCTION
Managerial Economics provides a foundation of economic understanding for use in managerial decision-making. Both microeconomic and macroeconomic relations have implications for this decision-making process. Since the demand for a firm’s products plays a major role in determining its profitability and ongoing success, demand analysis and estimation are essential areas of study. This entails an investigation into demand and supply and naturally leads to a discussion of economic forecasting and methods forecast reliability. Production theory, cost analysis and linear programming techniques are also explored as means for understanding the economics of resource allocation and employment.
A good background in ECN 1100, ECN 1200, ECN 1110 / MNG 1110 and ECN 1230 is required.
COURSE CONTENT
Week 1
Definition and scope of Managerial Economics. Indifference – Curve analysis of consumer behaviour. Attribute approach to consumer choice. The demand function and the demand curve. Elasticity of demand.
Week 2
Estimation of the demand function. Interviews, surveys and experiments. Regression analysis of consumer demand. Demand forecasting.
Week 3
Production and cost analysis. Linear programming applications.
Week 4
Cost estimation and forecasting. Short run cost estimation. Long run cost estimation. Cost forecasting.
Week 5,6
Market structure analysis. Model of the firm’s pricing decisions. Basic market forms. Price takers, price makers. Price making in oligopolies with mutual dependence recognized. Pricing for long-term objectives.
Week 7
Setting the initial price for a new product. Adjusting price over time.
Mid-Semester Test (30 marks).
Week 8
Types of competitive bids and price quotes. Competitive bidding