Management economics concerns itself with the application of micro and macroeconomic principles to the organization and conduct of a business enterprise. It provides an understanding of the economic concepts, institutions, and methods for analysis of the firm, the nation and the world. Its principal purpose is to indicate how economic analysis can be utilized to illuminate the process of management decision making and to help improve the quality of those decisions.
The course is designed to provide techniques for analyzing the firm’s immediate economic environment including the nature of industry demand and supply, the interrelationship between the firm’s production and cost functions and the pricing decision, the effect of market structure on the behavior of competitors, and an understanding of the characteristics, limitations, and uses of economic information available to the firm from public and private sources. It is designed to illustrate the major tools, concepts, and institutions of economic thought and their application to the making of business decisions and the formulation of policies.
Course Learning Outcomes
Identify and interpret key macroeconomic indicators such as national income, unemployment, and inflation, and explain how they influence fiscal and monetary policies.
Evaluate the impact of cyclical instabilities and policy options on economic growth and productivity.
Apply the principles of consumer choice and elasticity to predict changes in production costs and pricing decisions within different market structures.
Analyze the competitive behaviors and regulatory issues in monopoly, oligopoly, and monopolistic competition.
Describe the function of factors and financial markets and the role they play in the distribution of resources.
Create a comprehensive plan to address a selected issue in international economics or global poverty, incorporating knowledge from factor markets and distributional issues.