Managerial Economics

Catalog description

Managers are responsible for directing resources to achieve a stated goal and this involves making countless decisions. At what price should the firm sell its goods? What wages should the workers be paid? How many units should be produced every month? What contract should be offered to the CEO? Should intermediary inputs be bought on the market or manufactured in house? Is it worth investing in an advertising campaign? How to respond to a rival's new product launch? Is it profitable to enter a new market? Will the business be affected by the government's monetary policy? Managerial economics is the study of how to direct scarce resources in the management of a business (or other organizations) in a way that most efficiently achieves their managerial goals. This course introduces the economic concepts and tools most relevant to managers in their decision-making process and examines their application to businesses from various countries. The goal is to develop students' skills to analyze the choices to be made by managers, taking into account the economic environment and the constraints they face, in order to make decisions that optimally fulfil their managerial objectives.