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Introduction to Managerial Economics

Introduction to Managerial Economics. Economic concepts Economic tools Economic methodology. Using Economics in Managerial Decision Making. What is economics? Economic rhetoric. The Economic Problem. Questions Issues Managerial decisions. Decision Making Problems.

reuben-delaney
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Introduction to Managerial Economics

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  1. Introduction toManagerial Economics • Economic concepts • Economic tools • Economic methodology

  2. Using Economics in Managerial Decision Making • What is economics? • Economic rhetoric

  3. The Economic Problem • Questions • Issues • Managerial decisions

  4. Decision Making Problems • Product price and output • Make or buy • Production technique • Inventory levels • Foreign exchange

  5. Economic Concepts • Theory of consumer behavior • Theory of the firm • Production and cost • Theory of market structure • Competition, monopoly, oligopoly • Terminology

  6. Objectives of the Firm • Profit maximization • Cash flow • Alternative objectives • Shareholder value

  7. Defining Value • Role of valuation • Determinants of value • Creating and capturing value

  8. Nature of Profits • Definition • Sources • Role • Incentives • Signal

  9. Theories of Profit • Risk-taking • Frictional • Monopoly rents • Innovation • Managerial efficiency

  10. Principal-Agent Problem • Conflicting motivations among groups • Solutions

  11. Goals in the Not-for-Profit Sector • Maximize quantity s.t. breakeven constraint • Maximize utility of stakeholders • Maximize cash flows

  12. Tools of Analysis • Mathematics • Statistical estimation • Forecasting • Linear programming • Optimization

  13. Methodology of Microeconomics • Model building • Scientific method • Framework • Theory • Hypothesis • Empirical test • Neoclassical framework

  14. Social Responsibility of Business • Invisible hand • Market imperfections • Exploitation • Government response

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