BSc International Business, Finance and Economics with Industrial/Professional Experience

Year of entry: 2020

Course unit details:
Managerial Economics I

Unit code ECON20001
Credit rating 20
Unit level Level 2
Teaching period(s) Semester 1
Offered by Economics
Available as a free choice unit? Yes

Overview

The aim of this course is to introduce students to theoretical economic concepts and analytical tools relevant to firm management. This module prepares students to more advanced topics covered in Managerial Economics II Econ31000.

At the end of this course students should be able to: (i) demonstrate a sound understanding of demand theory, costs and profit analysis, perfect and imperfect competition, and market and organisation structures; (ii) employ a rigorous approach to modeling economic problems; (iii) apply the appropriate techniques (including algebraic manipulations, linear regression, forecasting methods, linear programming and other management techniques) to find efficient solutions to these problems.

Pre/co-requisites

Unit title Unit code Requirement type Description
Microeconomics 1 ECON10221 Pre-Requisite Compulsory
Microeconomics 1 ECON10331 Pre-Requisite Compulsory
Macroeconomic Analysis 1 ECON10181 Pre-Requisite Compulsory
Macroeconomics 1 ECON10241 Pre-Requisite Compulsory
Macroeconomics 1 ECON10252 Pre-Requisite Compulsory
Microeconomic Analysis 1 ECON10171 Pre-Requisite Compulsory
Introductory Mathematics ECON10061 Pre-Requisite Compulsory
Advanced Statistics ECON10072 Pre-Requisite Compulsory
Introductory Statistics for Economists SOST10062 Pre-Requisite Compulsory
Advanced Mathematics ECON10071 Pre-Requisite Compulsory
(ECON10171 Micro Analysis 1 or ECON10221 Micro 1 or ECON10331 Micro 1) and (ECON10181 Macro Analysis 1 or ECON10241 Macro 1 or ECON10252 Macro 1) and (ECON10061 Intro Maths or ECON10071 Adv Maths) and (SOST10062 Intro Stats or ECON10072 Adv Stats)

Must have taken the following combinations (compulsory Pre-Requisite):

  • (ECON10171 or ECON10221 or ECON10331) AND
  • (ECON10181 or ECON10241 or ECON10252)

 

AND also at least one of the following combinations (compulsory Pre-Requisite)

  • (ECON10061 and SOST10062) OR
  • (ECON10071 and ECON10072) 

Aims

The aim of this course is to introduce students to theoretical economic concepts and analytical tools relevant to firm management. This module prepares students to more advanced topics covered in Managerial Economics II (ECON31000).

Learning outcomes

At the end of this course students should be able to:

  1. Demonstrate a sound understanding of demand theory, costs and profit analysis, perfect and imperfect competition, and market and organisation structures.
  2. Employ a rigorous approach to modeling economic problems.
  3. Apply the appropriate techniques (including algebraic manipulations, linear regression, forecasting methods, linear programming and other management techniques) to find efficient solutions to these problems.

Syllabus

Demand Theory and Analysis

  • Demand Functions / Price and Income Elasticity

Estimation of Demand

  • Statistical Estimation of Demand Functions
  • Linear Regression Models / Nonlinear Regression Models

Business and Economic Forecasting

  • Series Analysis / Smoothing Techniques

Production and Cost Analysis

  • Average and Marginal Costs / Short-Run versus Long-Run Cost
  • Returns to Scale; Economies of Scope and Scale; Learning Curves

Cost Minimization/Profit Maximization

  • Linear Programming

Perfect/Imperfect Competition

Perfect Competition / Monopolies / Non-Cooperative Oligopolies

Long-Term Investment Decisions

  • Capital Budgeting Process / Firm’s Cost of Capital / Cost-Benefit Analysis

Teaching and learning methods

Lectures, exercise classes and feedback classes.

Employability skills

Analytical skills
Synthesis and analysis of data and information.
Problem solving
Research
Planning, conducting and reporting on research.
Other
Using library, electronic and online resources. Using reporting skills. Mapping and modelling. Information retrieval. Numeracy. Literacy. Computer literacy. Time management. Applying subject knowledge. Improving own learning.

Assessment methods

Item 1: 2 Assignments, in total 20% of final grade.

Item 2: January exam, 80% of final grade. There are 2 sections of equal weight. Answer all of Section A (multiple choice) and Section B (two open answer questions).
 

Feedback methods

  • Multiple Choice Quizzes.
  • In the Exercise and Feedback Classes, you collect your Assignment and have the possibility to obtain individual/group feedback on the submitted work and any other items concerning the exercises covered.

NOTE: Students can also receive further feedback from tutorials, office hours, revision sessions, discussion boards etc.


 

Recommended reading

Essential

 

James R. McGuigan,R. Charles Moyer, Frederick H.deB. Harris (2017) Managerial Economics: Applications, Strategies and Tactics, 14th Edition, Cengage Learning. (IBSN:9781305506381)

McGuigan J. R., R. C. Moyer, F. H. deB. Harris (2014), Managerial Economics: Applications, Strategy and Tactics, 13e, Cengage Learning. (ISBN-10: 1285420926, ISBN-13: 9781285420929)

****AVAILABLE as E-BOOK****

Supplementary Readings:

Allen, W.B., K Weigelt, Neil Doherty (2009), Managerial Economics, 7e, W.W. Norton & Company (ISBN 978-0-393-93224-9)

Baye M.R. and Prince J. (2013), Managerial Economics and Business Strategy.  Irwin (8th Edition). (ISBN-10: 0073523224, ISBN-13: 978-0073523224)

Kreps D. (2003), Microeconomics for Managers, W.W. Norton & Company (ISBN 0-393-97678-5).

Study hours

Independent study hours
Independent study 0

Teaching staff

Staff member Role
Carlo Reggiani Unit coordinator

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