PART 1: Overview of Managerial Economics

1. Nature and Scope of Managerial Economics

2. Economic Optimization
3. Demand and Supply

PART 2: Demand Analysis and Estimation

1. Demand Analysis
2. Demand Estimation
3. Forecasting

CASE ANALYSIS
 The Rise of Global Corporations
 The Global Business Leader
 The World’s Most Admired Companies

PART 3: Production and Competitive Markets

1. Production Analysis and Compensation Policy
2. Cost Analysis and Estimation
3. Linear Programming
4. Competitive Markets
5. Performance and Strategy in Competitive Markets

Production and Cost Analysis

 The organization of production
 The production functions
 Production function with one variable input
 Production function with two variable input
 Optimal Combination of Inputs
 Return to scale
 Empirical production functions
 Innovation and Global Competitiveness
PART 4: To explain, calculate and interpret the different variables related to Cost Theory
and Estimation
 The nature of cost
 Short-run cost function
 Long-run cost curves
 Plant size and economic of scale
 Learning curves
 Minimizing cost internationally
 The architecture of the Ideal firm
 Cost-volume-profit Analysis and Operating Leverage
 Empirical Estimation of Cost Functions

PART 5: Imperfect Competition

1. Monopoly and Monopsony
2. Monopolistic Competition and Oligopoly
3. Game Theory and Competitive Strategy
4. Pricing Practices

To characterize and differentiate the typology of market structures and compute for the
cost profit associated each type
 Market structure and degree of competition
 Perfect Competition
 Competition in the global economy
 Monopoly
 Monopolistic Competition

To characterize Oligopoly and play the games of competition

 Oligopoly and Market concentration
 Oligopoly Model
 Sales Maximization Model
 The March of Global Oligopoly
 Strategic Behavior and Game Theory
 The Prisoner’s Dilemma, price and non-price competition, and cartel cheating
 Extension of Game Theory
 Strategic Behavior and International Competitiveness
PART 6: To discuss the different pricing practices and calculate the price based on
different strategies
 Pricing of multiple products
 International price of discrimination and dumping
 Transfer pricing
 Pricing in practice

PART 7: Long – Term Investment Decisions

1. Risk Analysis

To discuss and calculate the concept of risk

 Risk uncertainty in managerial decision making
 Measuring the risk with probability distributions
 Utility theory and risk aversion
 Adjusting the valuation model for risk
 Other techniques for incorporating into decision making
 Decision making under uncertainty
 FOREX risk and Hedging
 Information and Risk

PART 8: Long – Term Investment Decisions

1. Capital Budgeting
2. Organization Structure and Corporate Governance
3. Government in the Market Economy

To explain the concept of Capital Budgeting as Long-run Investment decisions

 Capital Budgeting
 Capital Budgeting Process
 Capital Rationing and the Profitability index
 The Cost of Capital
 Reviewing Investment Projects after Implementation