Subject details

Students who successfully complete this subject will be able to:

  1. Apply an economic decision making framework to a wide range of managerial economic problems
  2. Use the concepts of elasticity and marginal revenue to establish optimal prices for goods and services
  3. Identify the costs that are relevant to decision making and distinguish between cost reductions due to scale, scope and learning effects
  4. Understand how firms can best organise themselves to deal with the constraints posed by asymmetric information
  5. Apply the basic concepts of game theory to oligopolistic decision making.
  • Topics

    • Introduction to Managerial Decision Making
    • Economics and Managerial Decision Making: The Firm and its Goals
    • Demand, Supply and Demand Estimation
    • Demand Elasticity
    • Demand Estimation and Regression
    • Cost Analysis in Contemporary Firms
    • Cost Analysis
    • Pricing, Output Decisions and Game Theory
    • Perfect Competition and Monopoly
    • Monopolistic Competition and Oligopoly
    • Pricing Practices
    • Game Theory
    • Risk Analysis
    • Asymmetric Information and its Significance
    • Buisness Relations and the Global Market
    • The Multinational Corporation and Globalization
  • Study resources

    • Online Materials

      • Printable format materials

Entry Requirements

You must have successfully completed the following subject(s) before starting this subject:

SWI-ECO10002, or SWI-ECO10004-Economic Principles , or USA-ECO11-Principles of Economics

Special requirements

No special requirements

Managerial Economics and Strategy aims to provide students with an understanding of some of the main economic tools used in making sound managerial decisions in an increasingly complex and competitive business environment. It also aims to assist students to apply those tools to a variety of economic issues faced by business, non-profit organisations and government. Among the topics covered are market structures and their impact on industry performance, the pricing strategies of firms, the use of game theory in interpreting firm behaviour, capital budgeting and information imperfections in markets.

  • Report - Individual (40 - 50%)
  • Mid Semester Test - Individual (10 - 20%)
  • Invigilated Exam - Individual (30 - 50%)

Textbooks are subject to change within the academic year. Students are advised to purchase their books no earlier than one to two months before the start of a subject.

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