MBA – Managerial Economics
Basic Information
Course Title: Managerial Economics
Code:
Hours: Lecture: Credit Hours: 3
Academic Year / Level: Year: Term:
1-Course Description and Overall Objectives:
Managerial Economics is the use of economic theory and mathematical and statistical
techniques in order to examine how a firm can make optimal managerial decisions given
the constraints it faces. The main objective of this course is to equip students with the
necessary theory and techniques and the ability to apply them in order to inform and
enhance managerial decision making. Topics covered include: goals of the firm,
optimization techniques, demand theory and estimation, forecasting and measurement,
theory of production and estimation, cost theory and estimation, pricing and output
determination under different market structures, game theory, and pricing in practice.
Course Objectives:
A. Use Economic tools to explain the optimal allocation of resources within the firm.
B. Use the tools of economic theory to explain optimal production and pricing
decisions by the firm in each market structure
C. Apply regression analysis, estimation and forecasting, and game theory to
guide managerial decision-making.
2-IntendedLearningOutcomesoftheCourse(ILO
s):
(A) Through knowledge and understanding, students will be able to:
(K1) Define the economics way of thinking.
(K2) Define the main economic tools and theories available for decision-
making policies to stabilize and stimulate the economy.
(K3) Distinguish between the different market structures and pricing practices
available to and used by firms.
(B) Through intellectual skills, students will be able to:
(I1) Critically assess and describe the environment and the main determinants
of demand and competition facing the firm.
(I2) Use the tools of economic theory to explain optimal production and
pricing decisions by the firm in each market structure.
(I3) Appraise some of the current and emerging issues in managerial
economics at the national and international levels.
(C) Through professional and practical skills, students will be able to:
(P1) Use the tools of marginal analysis to explain the optimal allocation of
resources within the firm.
(P2) Use the tools of estimation and forecasting to support decision-making.
(P3) Use game theory to define the optimal course of action a firm can take
when dealing with competitors.
(D) Through general and transferable skills, students will be able to:
(G1) Develop analytical skills related to economic theories in business contexts.
(G2) Develop business stimulation ability.
(G3) Formulate and apply the right economic tools for business decision-
making.
3-Course Outline:
Week Number 1: Introduction: What is Economics?
Week Number 2: The Firm and Its Goals
Week Number 3: Supply and Demand
Week Number 4: Demand Elasticity
Week Number 5: Demand Estimation and Forecasting
Week Number 6: Continue: Demand Estimation and Forecasting
Week Number 7: First Assessment (Lecture will continue after the assessment)
Week Number 8: The Theory and Estimation of Production
Week Number 9: The Theory and Estimation of Cost
Week Number 10: Pricing and Output Decisions: Perfect Competition and
Monopoly
Week Number 11: Pricing and Output Decisions: Monopolistic Competition and
Oligopoly
Week Number 12: Second Assessment (Lecture will continue after the assessment)
Week Number 13: Special Pricing Practices
Week Number 14: Game Theory
Week Number 15: Managerial Economics in Action
Week Number 16: Final Examination
4-Teaching and Learning Methods:
The class will meet one a week for lecture. Some exercises will be solved in class
and case studies covering the lectures will be analyzed. Students are expected to
present a case analysis in class.
Required facilities: Overhead Projector and Data Show.
5-Student Assessment Methods, Schedule and
Grading:
6-List of References:
(a) Course Notes:
Notes will be distributed to the students throughout the semester
(b) Essential Books:
th
Keat, P., Young, P.K. and Erfle, S., Managerial Economics, 7 Edition, Prentice
Hall, 2013.
(c) Recommended Books:
Salvatore, D., Managerial Economics: Principles and Worldwide Applications,
th
7 Edition, Oxford University Press, 2011.
(d) General References:
Emerald Database through iConnect.bau.edu.lb
