ECON 3041: Managerial Economics

• List the different goals and constraints that firms face
• Apply the economic way of thinking to individual decisions and business decisions
• Use first and second order derivatives of calculus to solve for an optimum solution
• Understand how prices get determined in markets, how market participants benefit in the form of consumer surplus and producer surplus, and what are the consequences of government intervention
• Measure the responsiveness of consumers' demand to changes in the price of a good or service, the price of other goods and services, and income
• Understand the different costs of production and how they affect short and long run decisions
• Derive the equilibrium conditions for cost minimization and profit maximization
• Understand economies of scale, diseconomies of scale, economies of scope, and cost complementarities, and how each affects the cost of production
• Explain the principal-agent problem and why different forms of compensation exist
• Understand the four basic market models of perfect competition, monopoly, monopolistic competition, oligopoly, and how price and quantity are determined in each model
• Understand how game theory can be used to explain a number of business decisions
• Explain four different pricing practices such as discrimination, two-part pricing, block pricing, commodity bundling, transfer pricing, and peak load pricing
• Understand why there is a role for the government to play in market economies

Module 1: Fundamentals of Managerial Economics

Module 2: Demand and Supply

Module 3: Costs of Production and the Organization of the Firm

Module 4: Market Structures: Pricing and Output Decisions

Module 5: Game Theory and Pricing Strategies

Module 6: The Economics of Information and the Role of Government in the Marketplace

The following materials are required for this course:

1. Baye, M., & Prince, J. (2022). Managerial economics and business strategy (10th ed.). McGraw-Hill.
   Type: Textbook. ISBN: 9781266071010

A math calculator, preferably with several memories, square root functionality, logarithms, correlation/regression analysis, and financial analysis (e.g., present values and the internal rate of return).

To successfully complete this course, students must achieve a passing of 50% or higher on the overall course, and 50% or higher on the final mandatory exam.

An Open Learning Faculty Member is available to assist students. Students will receive the necessary contact information at the start of the course.