SM1.21 Managerial Economics

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SM1.21 Managerial Economics

• Welcome to session 1

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Introduction

• Objectives

• Evaluation

• Course Outline

• Course timetable

• Methodology

• Definitions

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Objectives

• To get to know each other
• To understand the structure and content of the
  course
• To know what you are expected to do and how to
  obtain good grades

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Course Objectives

• To understand the basic of the Economic Theory
• To provide a foundation in managerial economics
  and the application of economic theory in
  industry and technological based organizations

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Evaluation of Course

• 2-3 graded Quizzes 20
• Presentation 20
• Participation 10
• Final Exam 50
• Self evaluation
• Course evaluation

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Course Outline

• Cost Theory
• Market Structure
• Strategies and Pricing
• The Role of the Government
• Risk Analysis and
• Capital Budgeting
• Tutorial

• The Nature and Scope of MECS
• Optimization Techniques and Management Tools
• Demand Theory
• Demand Estimation and Forecasting
• Production and Cost

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Course Timetable
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Methodology

• lecturing
• Case Studies
• Home study
• Learning by discovery
• Workshop
• Project method
• QA

The best way to learn is to teach
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Definitions

• Manager, Management
• Economics (Micro-Macro Positive,Normative)
• Goals of Economic Policy

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The Scientific Approach

• Observation
• Economic Analysis
• Statistical Analysis
• Experiments

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Pitfalls

• Failing to Keep Other Things Equal
• The Post Hoc Fallacy
• The Whole Is Not Always The Sum Of The Parts
• Subjectivity (Is It a Bird?)

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Other Issues

• Basic Problem of Economic Organization- What
  commodities to produce- How to produce them-
  For Whom shall goods be produced
• Inputs and Outputs
• Market, Command and Mixed