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.
School: La Trobe Business School
Credit points: 15
Subject Co-ordinator: Yuji Tamura
Available to Study Abroad Students: Yes
Subject year level: Year Level 2 - UG
Exchange Students: Yes
Subject particulars
Subject rules
Prerequisites: Must have passed either ECO1DSM (previously called ECO1IMI) or ECO1PPA or BUS1BUE
Co-requisites: N/A
Incompatible subjects: Must not have already passed ECO3IND
Equivalent subjects: N/A
Special conditions: N/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Managerial Economics: A Strategic Approach, 2e | Recommended | Fisher, T.C.G., Prentice, D., Waschik, R. (2010) | ROUTLEDGE |
| Readings | Microeconomics for Managers | Recommended | D. 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(Critical Thinking)
- Creative Problem-solving(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(Critical Thinking)
- Creative Problem-solving(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(Critical Thinking)
- Creative Problem-solving(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(Critical Thinking)
- Creative Problem-solving(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(Critical Thinking)
- Creative Problem-solving(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(Critical Thinking)
- Creative Problem-solving(Creative Problem-solving)