Course Description
This course provides a solid foundation of economic principles to support managerial decision making. Topics include cost-benefit analysis, demand estimation and forecasting, decision making under risk and uncertainty, production and cost analysis, and market structure analysis.
Case Background:
All businesses need to make decisions about how much to spend on equipment, how many people to hire, etc. as well as decide how much to produce. In making these decisions, managers must take into account some fundamental principles of economics. For example, when deciding whether or not to produce one more unit, it is not necessarily the total production cost that you need to consider. Instead, the concept of marginal analysis is employed. This entails looking at how much it costs to produce one more unit – or the marginal cost. Other important concepts of this module include fixed costs, variable costs, and the law of diminishing marginal returns.
Sample Solution