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Managerial Economics syllabus

ECO 5126 units · 28 topicsAcademic year 2083/84
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Managerial Economics

6 units

1. Introduction to Managerial Economics and Theories of Firm LH 7

  1. (a) Concept and scope of managerial economics
    1. (a) Concept and scope of managerial economics
  2. Managerial economics and business decision- making
    1. Managerial economics and business decision- making. (b) Business profit and economic profit. (c) Theories of firm: Profit maximisation
    2. Value maximisation
  3. Sales revenue maximisation
    1. Sales revenue maximisation
  4. Williamson’s model of managerial discretion
    1. Williamson’s model of managerial discretion.

2. Demand Analysis and Forecasting LH 8

  1. (a) Concept and significance of demand forecasting. (b) Techniques of demand forecasting
    1. (a) Concept and significance of demand forecasting. (b) Techniques of demand forecasting: Survey methods
    2. Market experiment
  2. Time series analysis
    1. Time series analysis
  3. Moving average method
    1. Moving average method
    2. Regression analysis
  4. Barometric technique
    1. Barometric technique. (c) Use of elasticities of demand in business decision making. (d) Limitations of forecasting.

3. Production and Cost Analysis LH 5

  1. (a) Production function
    1. (a) Production function: Short run production function
  2. Long run production function
    1. Long run production function
  3. Cobb- Douglas production function
    1. Cobb- Douglas production function. (b) Optimal use of one variable input and two variable inputs. (c) Learning curve
  4. Empirical estimation of short run cost function
    1. Empirical estimation of short run cost function

4. Pricing Theory and Practice LH 14

  1. (a) Pricing under oligopoly
    1. (a) Pricing under oligopoly: Cartel arrangement
    2. Price leadership
  2. Kinked demand curve model. (b) Strategic behaviour and game theory
    1. Kinked demand curve model. (b) Strategic behaviour and game theory: Concept
    2. Payoff matrix
    3. Nash equilibrium
    4. Prisoner’s dilemma
  3. Simultaneous move one shot game
    1. Simultaneous move one shot game
  4. Simultaneous move repeated game
    1. Simultaneous move repeated game
  5. Multistage game (c) Pricing techniques
    1. Multistage game (c) Pricing techniques: Cost-plus pricing
  6. Incremental cost pricing
    1. Incremental cost pricing
    2. Predatory pricing
  7. Multiple product pricing (fixed proportion)
    1. Multiple product pricing (fixed proportion)
    2. Transfer pricing
    3. Peak-load pricing
  8. Two-part tariff. (d) Economics of discriminations
    1. Two-part tariff. (d) Economics of discriminations: Wage differential
  9. Price discrimination
    1. Price discrimination

5. Risk Analysis LH 4

  1. (a) Concept of risk and uncertainty (b) Attitude toward risk and uncertainty
    1. (a) Concept of risk and uncertainty (b) Attitude toward risk and uncertainty: Utility Theory and risk aversion
  2. (c) Information and risk
    1. (c) Information and risk: Asymmetric information, Adverse selection, Signaling, Moral hazard, Principal -agent problem

6. Market Efficiency and Role of Government LH 10

  1. (a) Market and efficiency
    1. (a) Market and efficiency: Effect of government policy (tax and price control policy) in market equilibrium and market efficiency (b) Market failure: Concept and sources of market failure: Market power and deadweight loss
  2. Incomplete information
    1. Incomplete information
    2. Externalities
  3. Public goods. (c) Government response to market failure
    1. Public goods. (c) Government response to market failure: Rationale for regulation
    2. Monopoly regulation
    3. Antitrust policy
    4. Patent system
    5. Operating controls
    6. Subsidy policy
    7. Tax policy
  4. Regulation of environmental pollution
    1. Regulation of environmental pollution. (d) Regulation of international competition. (e) Problems of regulation
  5. Effects of regulation on efficiency. (e) Government failure
    1. effects of regulation on efficiency. (e) Government failure: Theory of public choice. Note: Numerical illustrations and case analysis will be used wherever applicable.