Economic Analysis for Business and Strategic Decisions (Managerial Economics) - v05 (Course Id 892)

Economics - Economics for Course Id 892

This course provides a clear and concise introduction to managerial economics. The course managerial economics is offered in a variety of titles including business economics, economic analysis for business decisions, economics for management decisions, etc. at both the undergraduate and graduate levels.

It focuses on the fundamentals and essentials needed to understand how business decisions are made and tackled using economics and other quantitative tools. It illustrates decisions with many solved problems to test and help students reinforce their understanding of the subject. Further, many business professionals can benefit from this course. The reader is assumed to have done some introductory-level work in economics. A minimal amount of background in college-level math and statistics is also expected.

This course extensively and intensively shows the application of economic theory and concepts to real-life business decisions. It consists of questions and problems along with their answers and suggested solutions.

NASBA QAS - Text - Technical - NASBA Registry - 892

Chapter 1
The Fundamentals of Managerial Economics

1. Define the concept of time value of money.
2. Recognize the difference between value maximization and profit maximization.
3. Identify profit-making motives for companies.
4. Recognize how marginal analysis is used for business decisions.

Chapter 2
Optimization Techniques

1. Identify how a derivative is used in economic analysis.
2. Recognize the characteristics of a mathematical concepts in optimization techniques.
3. Recognize different goals for economic optimization.

Chapter 3
Market Forces: Demand and Supply

1. Recognize factors that affect the demand curve.
2. Identify examples of complementary goods.
3. Recognize the uses for the point price elasticity concept.
4. Identify how factors, such as technology, change the supply curve.

Chapter 4
Quantitative Demand Analysis

1. Recognize how demand estimates can be achieved with market experiments.
2. Identify methods for predicting how buyers might respond to product changes.
3. Recognize different terms used in quantitative demand analysis.
4. Identify how some of the problems in estimating demand.

Chapter 5
Economic and Business Forecasting

1. Recognize attributes of a naive models of business forecasting.
2. Identify how econometric forecasting methods are constructed.
3. Recognize lagging and leading barometric forecasting economic indicators.
4. Identify characteristics of input-output analysis.

Chapter 6
Theory of Production

1. Define terms in the theory of production, such as the production function and average products.
2. Recognize output and input relationships under the law of diminishing returns.
3. Identify the purpose of an expansion path in illustrating relationships between capital and labor.

Chapter 7
Multiple Product Planning and Linear Programming

1. Recognize the underlying assumption of linear programming (LP).
2. Define the objective function.
3. Identify implications of different slack variables.
4. Recognize applications for linear programming.
5. Define the isoprofit curve.

Chapter 8
Cost: Theory and Analysis

1. Recognize the functions used in statistical cost analysis.
2. Recognize how incremental (differential) costs vary with business decisions.
3. Identify the costs most relevant to managerial decisions.
4. Identify examples of the learning curve effect.
5. Define a cost-volume-profit (CVP) analysis.

Chapter 9
Markets and the Behavior of the Firm

1. Identify the conditions with perfectly competitive markets.
2. Recognize attributes for firms in a monopolistic competitive industry.
3. Define the concentration ratio used to determine monopolistic behavior.

Chapter 10
Pricing Policies and Strategies

1. Recognize some of the popular pricing strategies.
2. Determine optimal pricing based on price elasticity.
3. Identify examples of peak load pricing.
4. Recognize pricing policies used during initial product launches.

Chapter 11
Long -Term Investment Decisions - Capital Budgeting

1. Recognize when a company should approve a capital budgeting project.
2. Define the cost of capital for a firm.
3. Identify how to determine the post-audit review values.

Chapter 12
Risk in Project Analysis

1. Define the concept of the expected value.
2. Recognize factors and attributes involved in risk.
3. Identify the purpose of the decision tree.

Chapter 13
A Manager's Guide to Government in the Market Place

1. Recognize implications of different antitrust policies, such as the Sherman Antitrust Act and the Clayton Antitrust Act.
2. Identify departments within the federal government responsible for enforcing antitrust regulations and the powers they use to enforce the regulations.

Chapter 1:    The Fundamentals of Managerial Economics

Learning Objectives:

The Management Decision Making Process

Profits

Profit Maximization and Marginal Analysis

Wealth Maximization

Chapter 1 Review Questions

Chapter 2:    Optimization Techniques

Learning Objectives:

Differential Calculus

Profit Maximization

Constrained Optimization

Lagrangean Multiplier Technique

Marginal Analysis versus Incremental Analysis

Chapter 2 Review Questions

Chapter 3:    Market Forces: Demand and Supply

Learning Objectives:

Demand and Revenue

Elasticity of Demand

Constant Elasticity

Supply Function

Market Equilibrium

Chapter 3 Review Questions

Chapter 4:    Quantitative Demand Analysis

Learning Objectives:

Econometrics and Regression Analysis

Regression Statistics

Use of Excel for Regression

Chapter 4 Review Questions

Chapter 5:    Economic and Business Forecasting

Learning Objectives:

Who Uses Forecasts?

Types of Forecasts

Forecasting Methodology

Selection of Forecasting Method

The Qualitative Approach

Naive Models, Moving Averages, and Smoothing Methods

Trend Analysis

Economic Forecasting

Measuring Accuracy of Forecasts

Chapter 5 Review Questions

Chapter 6:    Theory of Production

Learning Objectives:

Production Function

Measures of Productivity

The Stages of Production

Returns to Scale

Output Elasticity and Returns to Scale

Chapter 6 Review Questions

Chapter 7:    Multiple Product Planning and Linear Programming

Learning Objectives:

Applications of LP

Activity Analysis and Single Product

Profit-Maximization Problem

Chapter 7 Review Questions

Chapter 8:    Cost: Theory and Analysis

Learning Objectives:

Cost Functions

Stages of Production and Short-Run Cost Curves

Long Run Cost Curves - Planning Curves

Statistical Cost Analysis

Types of Costs

Incremental Analysis versus Marginal Analysis

Relevant Costs

Learning Curve

Cost-Volume-Profit and Break-Even Analysis

Graphical Approach in a Spreadsheet Format

Chapter 8 Review Questions

Chapter 9:    Markets and the Behavior of the Firm

Learning Objectives:

Perfect Competition

Long-Run

Monopolistic Competition

Oligopoly

Monopoly

Industry Concentration

Chapter 9 Review Questions

Chapter 10:    Pricing Policies and Strategies

Learning Objectives:

Cost-Based Pricing

Optimal Pricing Policy and Price Elasticity

Markup Pricing and Profit Maximization

Strategies That Yield Even Greater Profits

Strategies for Special Cost and Demand Structures

Pricing Policies

Chapter 10 Review Questions

Chapter 11:    Long -Term Investment Decisions - Capital Budgeting

Learning Objectives:

What are the Types of Investment Projects?

Understanding the Concept of Time Value of Money

A Basic Framework for Capital Budgeting

Capital Rationing (Project Ranking with a Limited Budget)

Cost of Capital and the Discount Rate

Chapter 11 Review Questions

Chapter 12:    Risk in Project Analysis

Learning Objectives:

Risk

Utility Theory and Risk

Risk Analysis in Capital Budgeting

Chapter 12 Review Questions

Chapter 13:    A Manager's Guide to Government in the Market Place

Learning Objectives:

The Rationale for Regulation

Antitrust Policy: Government Regulation of Market Conduct and Structure

Resource Allocation and the Supply of Public Goods

Public Project Analysis and Cost-Benefit Analysis

Chapter 13 Review Questions

Appendix

Table 1 - Future Value of $1 = T1(i,n) = FVIF

Table 2 - Future Value of an Annuity of $1 = T2(i,n) = FVIFA

Table 3 -  Present Value of $1 = T3(i,n) = PVIF

Table 4 -  Present Value of an Annuity of $1 = T4(i,n) = PVIFA

Table 5 - Critical Values for the t-Statistic

Table 6 - Learning Curve Coefficients

Glossary