Description

This course is designed for MBA or alike level  of economic analysis and tailored towards management of business to provide  students with an understanding of economic analysis of business practice. The course will set you running when you hit the road of business decision-making through the lenses of economic theory and analysis. Specifically,  you will acquire an understanding of the notion of price and its formation through the demand and supply model, and decision at the margin or marginal analysis,  (2) the centrality of the concepts of opportunity cost and efficiency to economic thinking and (3) understanding of how these economic tools are used to enhance business decision-making.

In practice, upon the completion of the course, a student should be able to : 

• Understand industry-level changes using demand/supply analysis.
• Use the rational-actor paradigm to predict  firm and individual behavior.
• Compute the relevant costs of any decision.
• Use marginal analysis to make extent (how much) decisions.
• Make investment decisions that increase  firm value.
• Understand the long-run forces that erode profit.
• Develop long-run strategies to increase  firm value.
• Set optimal prices and price discriminate.
• Use Game Theory to predict how your actions influence those of others, and vice versa.
• Bargain effectively and make decisions in uncertain environments.
• Solve the problems caused by moral hazard and adverse selection.