Course Details

ECONOMICS FOR BUSINESS AND MANAGEMENT

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ECONOMICS FOR BUSINESS AND MANAGEMENT

About this Course

The subject combines economic theories with the tools of mathematics and statistics in the decision making process. Managerial economics focus on the use of microeconomics principles such as supply and demand, elasticities, resource allocation, diminishing returns, economies of scale and pricing strategies, as important tools of analysis for managerial decision makers.

Course Learning Outcomes

There is no course learning outcomes (CLO) yet available in this course.

Course Syllabus

+ Course Syllabus

1) Introduction to Business Economics
1.1 Definition and importance of Business Economics
1.2 Business economics in microeconomic environment
1.3 Business economics in macroeconomic environment
1.4 Objectives of the firm
1.5 Concept of economic profit

2) Basic Training
2.1 Functional Relationship and Economic Models
2.2 Linear and power functions (Quadratic and cubic), differentiation
2.3 First derivative, second derivative and partial derivatives
2.4 Optimization Techniques
2.5 Maximum and minimum points
2.6 Substitution Method

3) Demand Theory
3.1 Determinants of demand.
3.2 Demand function and demand curve function
3.3 Market Demand
3.4 Total revenue, average revenue and marginal revenue
3.5 Relationship between the revenue curves
3.6 Elasticity of demand: Price, Income and Cross elasticity of demand

4) Demand Estimation
4.1 Technique of demand estimation
4.2 Demand estimation (multiple regression)
4.3 Least squares method
4.4 Interpretation of regression results
4.5 t- statistic
4.6 Coefficient of determination (R2)

5) Production Theory
5.1 Production function
5.2 Linear and nonlinear (Cobb Douglas Production Function)
5.3 Input-output production tables
5.4 Short-run production
5.5 Law of diminishing marginal returns
5.6 Stages of production
5.7 Optimal employment of a variable input
5.8 Long-run production
5.9 Isoquant and isocost analysis
5.10 Optimal Combinations of Inputs
5.11 Expansion Path
5.12 Returns to Scale

6) Cost Concepts
6.1 Types of cost (including Explicit and Implicit Cost)
6.2 Accounting Profit and Economic Profit
6.3 Short-run cost
6.4 Economies of Scale

7) Theory of Firms
7.1 Perfect competition
7.1.1 Characteristics
7.1.2 Output and pricing strategies in the short-run and long-run (Diagrams and calculations)
7.2 Monopoly
7.2.1 Characteristics
7.2.2 Output and pricing strategies in the short-run and long-run (Diagrams and calculations)
7.3 Monopolistic competition
7.3.1 Characteristics
7.3.2 Output and pricing strategies in the short-run and long-run. (Diagrams and calculations)
7.4 Oligopoly
7.4.1 Characteristics
7.4.2 Analysis of kinked demand curve model (Diagrams and calculations)

8) Pricing Strategies
8.1 Price Discrimination (1st, 2nd and 3rd degree)
(Calculation based on 3rd degree only)
8.2 Cost Plus Pricing