S A V Dr. H. Stoessel Managerial Economics 1999

Managerial Economics - 1.1

SM1.21 Managerial Economics

Welcome to session 1

S A V Dr. H. Stoessel Managerial Economics 1999

Managerial Economics - 1.2

Introduction

Objectives

Evaluation

Course Outline

Course timetable

Methodology

Definitions

S A V Dr. H. Stoessel Managerial Economics 1999

Managerial Economics - 1.3

Objectives

To get to know each other To understand the structure and

content of the course To know what you are expected to

do and how to obtain good grades

S A V Dr. H. Stoessel Managerial Economics 1999

Managerial Economics - 1.4

Course Objectives

To understand the basic of the Economic Theory

To provide a foundation in managerial economics and the application of economic theory in industry and technological based organizations

S A V Dr. H. Stoessel Managerial Economics 1999

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Evaluation of Course

2-3 graded Quizzes 20% Presentation 20% Participation 10% Final Exam 50% Self evaluation Course evaluation

S A V Dr. H. Stoessel Managerial Economics 1999

Managerial Economics - 1.6

Cost Theory Market Structure Strategies and Pricing The Role of the

Government Risk Analysis and Capital Budgeting Tutorial

Course Outline

The Nature and Scope of MECS

Optimization Techniques and Management Tools

Demand Theory Demand Estimation

and Forecasting Production and Cost

S A V Dr. H. Stoessel Managerial Economics 1999

Managerial Economics - 1.7

Course Timetable

Week 1IntroductionTheory of theFirm

Week 2Optimization

Week 3Demand and Theory ofthe consumer

Week 4Demand Estimation

Week 5Production and CostAnalysis

Week 6Cost Theory andEstimation

Week 7Market Structure

Week 8Strategies and Pricing

Week 9The Role of theGovernment

Week 10Risk AnalysisCapital Budgeting

Week 11Tutorial andreserve

Week 12Final Exam

S A V Dr. H. Stoessel Managerial Economics 1999

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Methodology

“lecturing” Case Studies Home study Learning by discovery Workshop Project method Q&A

The best way to learn is to teach

S A V Dr. H. Stoessel Managerial Economics 1999

Managerial Economics - 1.9

Definitions

Manager, Management Economics

(Micro-Macro; Positive,Normative) Goals of Economic Policy

S A V Dr. H. Stoessel Managerial Economics 1999

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The Scientific Approach

Observation Economic Analysis Statistical Analysis Experiments

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Managerial Economics - 1.11

Pitfalls

Failing to Keep Other Things Equal The Post Hoc Fallacy The Whole Is Not Always The Sum Of

The Parts Subjectivity (“Is It a Bird”?)

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Other Issues

Basic Problem of Economic Organization:- What commodities to produce- How to produce them- For Whom shall goods be produced

Inputs and Outputs Market, Command and Mixed