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Regular version of the site

Managerial Economics

2021/2022
Academic Year
ENG
Instruction in English
3
ECTS credits
Course type:
Bridging course
When:
1 year, 1 module

Instructor

Course Syllabus

Abstract

The purpose of the course is to teach the students how to apply the principles and models of economic theory for making managerial decisions: 1) estimating and analysing demand, 2) cost analysis, 3) smart pricing (price discrimination, tying, bundling, non-linear pricing), 3) competing in various market structures, 4) making decisions about product quality and differentiation.
Learning Objectives

Learning Objectives

  • Learn the economic way of thinking (rational choice, optimal allocation of resources, models, etc.)
  • Learn various market structures (competition, monopoly, oligopoly): how the firms may compete and what is potential equilibriums. Implications fo strategic management.
  • Learn various strategies of pricing for better profit (price discrimination, bundling, tying, etc.)
  • Learn main types of costs and cost functions, and their application for decision making.
  • Learn various strategies of getting competitive advantage through quality differentiation, R&D and advertising.
Expected Learning Outcomes

Expected Learning Outcomes

  • Upon the course completion, the student is expected know how to estimate demand on the basis of available data
  • Upon the course completion, the student is expected know how to make decisions about product quality and degree of differentiation
  • Upon the course completion, the student is expected know how to make production and pricing decisions for various cost structures
  • Upon the course completion, the student is expected know how to find optimal distribution of resources, optimal prices and quantities
  • Upon the course completion, the student is expected know how to invest in R&D to maximize profit and create competitive advantage
  • Upon the course completion, the student is expected know how to make decisions about of price and quantity competition in various market structures
  • Upon the course completion, the student is expected know how to use advertising expenses to maximize profit
  • Upon the course completion, the student is expected know how to use marginal analysis in managerial decisions
  • Upon the course completion, the student is expected know how to use various techniques of smart pricing (price discrimination, tying, bundling, etc.)
Course Contents

Course Contents

  • Demand and Supply
  • Demand Estimation
  • Market Power and Profit Maximization
  • Price Discrimination
  • Smart Pricing
  • Costs
  • Perfect Competition
  • Oligopoly
Assessment Elements

Assessment Elements

  • non-blocking Test 1 - Demand and Supply. Profit Maximization. Price Discrimination.
  • non-blocking Test 2 - Smart Pricing. Costs
  • non-blocking Test 3 - Perfect Competition. Oligopoly
  • non-blocking Business Game - Competition
  • non-blocking Exam
Interim Assessment

Interim Assessment

  • 2021/2022 1st module
    0.07 * Business Game - Competition + 0.3 * Exam + 0.21 * Test 1 - Demand and Supply. Profit Maximization. Price Discrimination. + 0.21 * Test 2 - Smart Pricing. Costs + 0.21 * Test 3 - Perfect Competition. Oligopoly
Bibliography

Bibliography

Recommended Core Bibliography

  • Dawsey, A. E. (2014). ECNS 301.01: Intermediate Microeconomics with Calculus.

Recommended Additional Bibliography

  • O. M. Makoviei. (2018). Organization of Business Games as an Interactive Method of Teaching Foreign Languages to Students of Hei Aquiring Specialties Connected with the Transport Industry. https://doi.org/10.30977/АТ.2219-8342.2018.43.0.118