Prof. R. Michelfelder, Ph.D. Fall 2016 Outline 1

Course Outline 1. Overview of Managerial Economics 2. Demand, Supply, Price Determination, Sales, Revenues, Estimation of Demand Function and Predicting Revenue 3. Regression Analysis: Estimation of Equations Forthcoming From Economic Theory for Business Management 4. Cost Structure of the Firm

Course Outline 5. Market Structures: Perfect and Imperfect Competition, Profit Maximization, and Pricing Strategy 6. Macroeconomic Policy Goals 7. Aggregate Demand, Supply, Inflation, and Business Cycles  8. Monetary Theory and Policy 9. International Trade and Finance (Time Permitting)

1. Overview of Managerial Economics 1.1 What is Managerial Economics 1.2 Economic Systems 1.3 Economic Theory: Micro- and Macro-Economics 1.4 Applications of Micro- and Macro- Economics

1.1 What is Managerial Economics Application of Micro and Macro-economics for business management

1.2 Economic Systems Centrally Planned Economies Resources allocated by central planner (government) Market Economies Resources allocated by price and markets Mixed Economies: Combination

1.3 Economic Theory: Micro- and Macro-Economics Microeconomics: deals with allocation of resources with price using demand and supply for the firm or a market Macroeconomics: deals with economy wide fluctuations in demand, supply, inflation and unemployment Business cycles due to increase or decrease in aggregate demand and therefore supply (GDP)

1.4 Applications of Micro- and Macro-Economics - effect of a health tax on cigarettes - effect of a subsidy on solar-generated electric power Macro: analysis of the current economy on real GDP, inflation and unemployment; impact of monetary policy on the economy For example, an electric utility’s sales and revenues are effected by both micro- and macro-economic conditions and variables.