Economics 520
 

Course Number and Title: Economics 520 - Managerial Economics

Catalog Description: Application of economic analysis in formulating business decisions, drawing upon the theoretical foundations of the concepts of demand, cost, production, profits, and competition, with special emphasis on case studies. Prerequisite: ECO 515.

Learning Objectives: Students successfully completing this course should be able to determine an optimal course of action for a firm under various market conditions, analyze the factors that describe the value of a firm under different market structures, and apply statistical and economic tools to the processes of forecasting and optimization.

Value of the firm and the economic variables influencing that value

Optimizing economic functions relevant to the firm (revenue, cost, profit)

Consumer behavior and rational choice to demand theory and elasticity concepts, and their relationship to pricing and output decisions made by the firm

Linear regression techniques as forecasting tools

Production theory

Short- and long-run cost

Four market structures under which a firm might operate

Pricing techniques such as markup pricing, transfer pricing, and price discrimination.

Risk analysis and capital budgeting.

Optional:

Linear programming using Lotus or Excel

Current Textbook: TBA

Evaluation: There will be periodic problem sets assigned to students, either individually or in groups, and these assignments may be required to be presented in class.  There will be one or more mid-term exams and a final exam covering the material assigned from the text, as well as any material included in readings, problem sets and/or case studies that are distributed in class.  Knowledge of basic skills in the use of spreadsheet computer programs may be expected.

Curriculum Coordinator: TBA