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Module 1 - (AEC 112) Intro To Managerial Economics

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77 views2 pages

Module 1 - (AEC 112) Intro To Managerial Economics

Uploaded by

RodolfoFaldas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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A MODULE IN INTRODUCTION TO MANAGERIAL ECONOMICS

MODULE 1

LEARNING OUTCOMES

At the end of the session, students are expected to explain the:


1) meaning of managerial economics;
2) nature and characteristics of managerial economics;
3) scope of managerial economics;
4) relationship of managerial economics with other branches of knowledge; and
5) concepts of economic analysis.
INTRODUCTION

Countless firms have used the well-established principles of managerial economics to improve their
profitability. Managerial economics draws on economic analysis for such concepts as cost, demand, profit
and competition. It attempts to bridge the gap between the purely analytical problems that intrigue many
economic theorists and the day-to-day decisions that managers must face. It now offers powerful tools
and approaches for managerial policy-making. It will be relevant to present here several examples
illustrating the problems that managerial economics can help to solve. These also explain how managerial
economics is an integral part of business. Demand, supply, cost, production, market, competition, price,
etc. are important concepts in real business decisions..
ACTIVITY

 Reflection Paper. Read and reflect on the case Decisions ... Decisions in the Social
Media Age. Answer the question at the end of the article.
To post or not to post? Every day we are faced with a myriad of decisions, from what to have for
breakfast, to which route to take to class, to the more complex—“Should I double major and add possibly
another semester of study to my education?” Our response to these choices depends on the information
we have available at any given moment. Economists call this “imperfect” because we rarely have all the
data we need to make perfect decisions. Despite the lack of perfect information, we still make hundreds of
decisions a day. Now we have another avenue in which to gather information—social media. Outlets like
Facebook and Twitter are altering the process by which we make choices, how we spend our time, which
movies we see, which products we buy, and more. How many of you chose a university without checking
out its Facebook page or Twitter stream first for information and feedback? As you will see in this course,
what happens in economics is affected by how well and how fast information disseminates through a
society, such as how quickly information travels through Facebook. “Economists love nothing better than
when deep and liquid markets operate under conditions of perfect information,” says Jessica Irvine,
National Economics Editor for News Corp Australia. This leads us to the topic of this chapter, an
introduction to the world of making decisions, processing information, and understanding behavior in
markets – the world of economics.
Case Question: Make a short essay of not less than 300 words and not more than 500 words about your
daily economic activities. What decisions are you making everyday?
ACQUISITION OF NEW KNOWLEDGE

 Contents:
1. Meaning, Nature, and Characteristics of Managerial Economics
2. Scope of Managerial Economics
3. Relationship of Managerial Economics with Other Business Knowledge
4. Concepts of Economic Analysis

APPLICATION
 Written task. In not less than 500 words and not more than 1,000 words, make an essay
of the following.

 What decisions managers face everyday? Explain each of these decisions.


ASSESSMENT

 Quiz. For ten (10) points each, answer the following questions briefly.

1) Why should we study managerial economics?


2) What does economic theory contribute to managerial economics?
3) Summarize the scope of managerial economics as a learner.
4) What is the contribution of psychology and organization behavior to managerial economics?
5) How is mathematics, statistics and operational research useful to managerial economics?

ASSIGNMENT

 For 3 points each, describe the following:

1) Price Demand
2) Income Demand
3) Cross Demand
4) Derived Demand
5) Joint Demand
6) Collective or Composite Demand

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