Managerial Economics

1. Apply managerial economics principles to solve business problems.
2. Analyze and make decisions under conditions of certainty and uncertainty.
3. Forecast market demand using various techniques.
4. Analyze production and cost functions to optimize resource allocation.
5. Apply pricing strategies based on market structure and demand elasticity.
6. Evaluate the impact of government policies on business decisions.

13 weeks, about 59 hours in total. Yours will differ.

1. Week 1Module 1: Basic Principles in the Application of Managerial Economics

   • Unit 1: Definition and Importance of Managerial Economics · 2 hours

     Define managerial economics and discuss its importance in business decision-making.. Identify the phases of business decision-making processes..

   • Unit 2: Scope of Managerial Economics · 2 hours

     Discuss the scope of managerial economics, including operational and environmental issues.. Explain how managerial economics bridges the gap between economic theory and real-world business decisions..

2. Week 2Module 1: Basic Principles in the Application of Managerial Economics

   • Unit 3: Meaning and Theories of Profit · 3 hours

     Define profit and differentiate between accounting profit and economic profit.. Discuss the various theories of profit, including Walker's, Clark's, Hawley's, Knight's, and Schumpeter's theories..

3. Week 3Module 1: Basic Principles in the Application of Managerial Economics

   • Unit 4: Profit Maximisation as a Business Objective · 2 hours

     Explain the conditions for profit maximization, including necessary and sufficient conditions.. Apply profit maximization principles to solve business problems..

   • Unit 5: Other Business Objectives · 2 hours

     Identify alternative business objectives, such as sales revenue maximization, growth rate maximization, and managerial utility function maximization.. Discuss the techniques for maximizing revenue and output while minimizing costs..

4. Week 4Module 1: Basic Principles in the Application of Managerial Economics

   • Unit 6: Constrained Optimisation Techniques · 3 hours

     Understand the meaning and importance of constrained optimization.. Apply constrained optimization techniques using the substitution method to solve business problems..

   • Unit 7: Constrained Optimisation by Lagrangian Multiplier Method · 3 hours

     Apply constrained optimization techniques using the Lagrangian multiplier method to solve business problems.. Interpret the value of the Lagrangian multiplier..

5. Week 5Module 2: Decision Analysis

   • Unit 1: Decision Analysis · 4 hours

     Understand the concept of decision analysis and its importance in business decision-making.. Analyze decision problems under conditions of certainty and uncertainty..

6. Week 6Module 2: Decision Analysis

   • Unit 2: Expected Monetary Value Decisions, Decision-Making Involving Sample Information, And Time Perspective in Business Decisions · 4 hours

     Make expected monetary value decisions using payoff tables and prior probabilities.. Incorporate sample information into decision-making using Bayes' Law.. Consider the time perspective in business decisions..

7. Week 7Module 3: Analysis of Market Demand, Demand Functions, Demand Analysis and Demand Forecasting

   • Unit 1: Analysis of Market Demand · 3 hours

     Define market demand and differentiate between various types of demand.. Identify and analyze the determinants of market demand..

   • Unit 2: Demand Functions · 3 hours

     Understand the different forms of demand functions, including linear, nonlinear, and multivariate functions.. Model demand for goods and services using appropriate demand functions..

8. Week 8Module 3: Analysis of Market Demand, Demand Functions, Demand Analysis and Demand Forecasting

   • Unit 3: Elasticity of Demand · 4 hours

     Define elasticity of demand and differentiate between own-price and cross-price elasticities.. Calculate arc and point elasticities of demand.. Analyze the determinants of price elasticity of demand..

9. Week 9Module 3: Analysis of Market Demand, Demand Functions, Demand Analysis and Demand Forecasting

   • Unit 4: Price Elasticity, Revenues, and Income Elasticity of Demand · 4 hours

     Analyze the relationship between price elasticity and total revenue.. Understand income elasticity of demand and its implications for business decisions..

10. Week 10Module 3: Analysis of Market Demand, Demand Functions, Demand Analysis and Demand Forecasting

    • Unit 5: Demand Forecasting · 4 hours

      Apply various demand forecasting techniques, including survey and statistical methods.. Use regression analysis to forecast demand for products..

11. Week 11Module 4: Production and Cost Analysis

    • Unit 1: The Theory of Production · 4 hours

      Understand the relationships between production and factors of production.. Analyze the short-run and long-run production functions.. Apply the Cobb-Douglas production function in production analysis..

12. Week 12Module 4: Production and Cost Analysis

    • Unit 2: Degrees of Production Functions, Returns to Scale and Economies of Scale · 3 hours

      Analyze the degrees of production functions and returns to scale.. Understand the managerial implications of economies and diseconomies of scale in production..

    • Unit 3: Optimal Input Combinations · 3 hours

      Determine the optimal input combinations for cost minimization and output maximization.. Analyze the effect of changes in input prices on the optimal combination of inputs..

13. Week 13Module 4: Production and Cost Analysis

    • Unit 4: Theory of Cost · 3 hours

      Understand the business cost concepts and their application in business decision-making.. Analyze cost-output relations in the short-run and long-run.. Apply break-even analysis to determine the break-even point for a business..

    • Unit 5: The Theory of Cost: Cost Output Relations · 3 hours

      Analyze long-run cost-output relations and their impact on business decisions.. Apply break-even analysis using linear and non-linear cost and revenue functions..