Give a working definition of managerial economics.
MANAGERIAL ECONOMICS
Goal: To give special attention to theories interpretation and application of concepts of managerial economies so as to enhance the students understanding of the various methods and techniques used in managerial decisions.
GENERAL OBJECTIVES:
On completion of this course, the student should be able to:
Understand the scope of managerial economics.
Know a working definition of business objectives.
Understand the importance of Investment decisions in both private and public enterprises.
Understand fundamental issues involved in pricing including the techniques used in both private and public sectors of the economy.
Understand some basic ideas of the demand side of markets.
Understand indifference theory- (alternative method of explaining the consumers behaviour).
Understand theory of the firm: (The operations of the economic agents performing with the different market structures).
Understand corporate strategy.
Understand cost analysis.
Understand the different types of business organization.
Understand operation research techniques.
1.1 Give a working definition of managerial economics.
1.2 Explain micro-economic theory in business decision-making (consumer theory, pricing theory, demand analysis, cost theory etc).
1. Provide student with aid of a simple example a clear meaning.
2. Lead the student in examining the application of economic theory to business problems.
1.1 Define profit as an objective.
1.2 Evaluate the internal and external influence of objective.
1. Provide a clear explanation of profit among other business objectives.
2. Lead the student in appraising some of the influencing factors.
3.1 Explain the nature of investment decisions.
3.2 Describe modern techniques of investment appraisal and related problems.
3.3 Compare and distinguish between net present value and internal rate of return.
3.4 Describe traditional methods of investment appraisal.
3.5 Explain cost/benefit analysis and public expenditure.
