2. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.1 SM1.21 Managerial Economics n Welcome to session 1

3. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.2 Introduction n Objectives n Evaluation n Course Outline n Course timetable n Methodology n Definitions

4. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.3 Objectives n To To get to know each other n To understand the structure and content of the course n To know what you are expected to do and how to obtain good grades

5. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.4 Course Objectives n To understand the basic of the Economic Theory n To provide a foundation in managerial economics and the application of economic theory in industry and technological based organizations

6. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.5 Evaluation of Course n 2-3 graded Quizzes20% n Presentation20% n Participation10% n Final Exam50% n Self evaluation n Course evaluation

7. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.6 » Cost Theory ¼ Market Structure ½ Strategies and Pricing ¾ The Role of the Government ¿ Risk Analysis and Capital Budgeting ò Tutorial Course Outline ¶ The Nature and Scope of MECS · Optimization Techniques and Management Tools ¸ Demand Theory ¹ Demand Estimation and Forecasting º Production and Cost

8. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.7 Course Timetable

9. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.8 Methodology n “lecturing” n Case Studies n Home study n Learning by discovery n Workshop n Project method n Q&A The best way to learn is to teach

10. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.9 Definitions n Manager, Management n Economics (Micro-Macro; Positive,Normative) n Goals of Economic Policy

11. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.10 The Scientific Approach n Observation n Economic Analysis n Statistical Analysis n Experiments

12. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.11 Pitfalls n Failing to Keep Other Things Equal n The Post Hoc Fallacy n The Whole Is Not Always The Sum Of The Parts n Subjectivity (“Is It a Bird”?)

13. S A V Dr. H. Stoessel Managerial Economics 1999 Managerial Economics - 1.12 Other Issues n Basic Problem of Economic Organization: - What commodities to produce - How to produce them - For Whom shall goods be produced n Inputs and Outputs n Market, Command and Mixed