MANAGERIAL ECONOMICS

ECO2MEC

Not currently offered

Credit points: 15

Subject outline

Students will be introduced to a range of microeconomic theory relevant to the management of an enterprise, including theories relating to demand, production, the nature of competition, and pricing across different firms as well as within a firm. In particular, students will learn how economic theory may help a manager discover the solution to practical problems.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorYuji Tamura

Available to Study Abroad StudentsYes

Subject year levelYear Level 2 - UG

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites Must have passed either ECO1DSM (previously called ECO1IMI) or ECO1PPA or BUS1BUE

Co-requisitesN/A

Incompatible subjects Must not have already passed ECO3IND

Equivalent subjectsN/A

Special conditionsN/A

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsManagerial Economics: A Strategic Approach, 2eRecommendedFisher, T.C.G., Prentice, D., Waschik, R. (2010)ROUTLEDGE
ReadingsMicroeconomics for ManagersRecommendedD. M. Kreps (2004)W. W. NORTON

Graduate capabilities & intended learning outcomes

01. Compare and contrast producers pricing and production decisions that are appropriate for different market environments.

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Critical Thinking
Creative Problem-solving

02. Differentiate between different methods of price discrimination, and use an appropriate one according to demand and cost information.

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Critical Thinking
Creative Problem-solving

03. Apply basic game theory to market environments where strategic interactions take place.

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Critical Thinking
Creative Problem-solving

04. Diagrammatically and numerically demonstrate the main economic models of oligopoly and use them to calculate profit#maximizing prices and production levels.

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Critical Thinking
Creative Problem-solving

05. Use the main economic model of differentiated products to calculate profit-maximizing prices and explain the consequences of location/quality choice for prices and profits.

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Critical Thinking
Creative Problem-solving

07. Apply economic models of horizontal and vertical integration and use them to calculate transfer prices.

Activities:
examples in lectures and tutorials
Related graduate capabilities and elements:
Critical Thinking
Creative Problem-solving

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