BAEcon Economics

The aim of this course is to introduce students to theoretical concepts and analytical tools from economics that are relevant to firm management. At the end of this course students should be able to demonstrate a sound understanding of demand theory, costs and profit analysis, perfect and imperfect competition, and market and organisation structures. They should be able to use standard methods to analyse economic problems analytically and be apply them to data using standard computer software and appropriate techniques. He course will focus on how to solve real world problems such as: how much does a firm need to produce to break even? Will profits increase if a firm increases its price? How will a firm's competitors respond if they increase production? What is the profit maximising price for a firm?

This module prepares students for more advanced topics covered in Managerial Economics II ECON31000.

IMPORTANT: If you are a level 3 student and have taken(ECON20222 or ECON20110) AND (ECON20021 or ECON20501) then we would advise you to NOT take this unit.

(ECON10171 OR ECON10221 OR ECON10331 OR ECON10331A OR ECON10331B) AND (ECON10181 OR ECON10241 OR ECON10241A OR ECON10241B OR ECON10252) AND (ECON10061 OR ECON10071A OR ECON10071B ) AND (SOST10062 OR ECON10072A OR ECON10072B)

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 OR ECON10071A OR ECON10071B ) AND (SOST10062 OR ECON10072A OR ECON10072B)

IMPORTANT: If you are a level 3 student and have taken(ECON20222 or ECON20110) AND (ECON20021 or ECON20501) then we would advise you to NOT take this unit.

The aim of this course is to introduce students to key theoretical concepts and analytical tools from economics that are relevant to firm decision-making and management. The unit equips students with the foundations needed to analyse business environments, understand market behaviour, and interpret data for managerial decisions. It also prepares students for more advanced quantitative and strategic topics covered in 3rd year Managerial Economics II. 

At the end of this course students should:

Have a sound understanding of demand theory, costs and profit analysis, perfect and imperfect competition, and market and organisation structures.

Know how to apply standard methods to model economic problems that are relevant to firm management.

Know how to use appropriate techniques to apply these models to real data in appropriate software (Excel).

Synchronous activities (such as Lectures or Review and Q&A sessions, and tutorials), and guided self-study.

Demonstrate a sound understanding of demand theory, cost and profit analysis, and how firms behave under perfect and imperfect competition and different organisational structures. 

Explain how economic models can be used to analyse managerial decision-making in areas such as pricing, output choice, and competitive strategy. 

Evaluate alternative managerial strategies in response to changes in market structure, competitor behaviour, or policy interventions. 

Use Excel to conduct descriptive analysis and estimate simple and multiple regression models relevant to managerial questions. 

Interpret empirical results and assess their implications for pricing, demand, and firm strategy. 

Present quantitative findings clearly using appropriate tables, graphs, and concise written interpretations for non-technical audiences. 

Communicate economic arguments and quantitative findings clearly and effectively in both written and verbal formats. 

Work collaboratively in teams to plan tasks, analyse data, and produce a coherent group report. 

Exam (short answer questions, problem solving questions - 1hr30 (60%)
Group Assignment - 1200 words (20%)
Individual Assignment - Excel task & short question, equivalent 90 minutes (20%)

• Online quizzes
• Exercise and Feedback Classes with individual and group feedback on submitted work
• Tutorials, drop-in sessions and office hours
• Discussion boards

Essential:

McGuigan, Moyer and Harris, Managerial Economics: Applications, Strategies and Tactics, Cengage Learning. (IBSN:9781305506381)

Anderson, D., Sweeney, D., & Williams, T. Essentials of Modern Business Statistics with Microsoft Excel (8th ed.). 

Supplementary Readings:

Allen, Weigelt, and Doherty, Managerial Economics, W.W. Norton & Company (ISBN 978- 0-393-93224-9)

Baye and Prince, Managerial Economics and Business Strategy. Irwin (ISBN-10: 0073523224, ISBN-13:978-0073523224)

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