Course Description – Managerial Economics. 3 hours. Intermediate microeconomics with a focus on applications of Economics to decisions made by managers of a firm, including the concept of demand analysis and forecasting, production and cost analysis, and pricing and output decisions. Prerequisite: EC202; or Instructor’s permission.

Course Goals & Objectives –

• Understand the role of profit within the firm and the relationship(s) between owner-principals and manager-agents.
• Perform Net Present Value and Internal Rate of Return calculations and be able to implement effective decisions based on the results
• Gain knowledge of supply and demand concepts and how they impact decisions within the firm. Identify relevance of global markets to current business markets.
• Use break-even and contribution analysis to illustrate and understand operating leverage.
• Differentiate between Pure Competition, Monopolistic Competition, Monopoly and Oligopoly. Explain how profit maximization relates to each.
• State the impacts of organizational form on operating environment. Evaluate the use of capital budgeting techniques in organizational decisions.