ECO 3500 Managerial Economics
Managerial Economics provides a broad overview of the economics of organization and business decision-making. What functions do firms serve and where do firms fit in the market economy? This course focuses on where firms fit in the analysis of market activity, how economists see the problem of organizing economic activity, understanding when markets solve that problem and why they sometimes do not and how businesses have emerged as a response to the organization problem. The goal of this course is for you to develop the skills necessary to make optimal managerial decisions given different situations, environments, and information sets by applying microeconomic theory, which involves analytical work.
Prerequisite
ECO 1000, STS 2120 or ECO 2300, and MTH 1160 or MTH 1510
Course Types
Society; Advanced Studies
Course Outcomes
- Interpret demand functions and elasticities and use this information to make optimal pricing decisions.
- Determine the firm’s optimal input usage, given alternative production functions and input prices.
- Recognize different market structures and make optimal decisions based on the economic environment in which your firm operates.
- Formulate alternative pricing strategies that will allow a firm with market power to increase its profits.
- Calculate various measures of market power and explain how these measures are used in evaluating horizontal mergers.