Measure and maximize profits.
Duration: 8 weeks
Maximize profits when you learn to identify and act on specific economic functions. In ECON 6101 Managerial Economics, you will gain confidence in your business decisions when they are informed by strong economic data. You will learn how consumers make purchasing and budgeting decisions in various markets, how supply and demand for goods effect the market equilibrium, and how individual goods can affect the entire marketplace. You will use pricing floors and ceiling graphs to predict when the government intervenes in the market, and how to determine the best market pricing. You will measure how production decisions differ between short and long-term runs to make the best choice for your product and company. Using cost-benefit analysis, and learning how big data can be skewed by sample sizes and peoples’ bias in responses, you will gain a more thorough understanding of your market and evaluate your strategies accordingly.
What You Will Learn in ECON 6101
You will increase efficiency and profitability when you recognize the relationship between short-run and long-run costs and examine the methods to develop strategies that increase economies of scale. You will also examine the pros and cons of downsizing through cost cutting or restructuring. You will evaluate the idea of perfect competition, and the demand curve for a price-taking company and compare monopolies and monopolistic competition. Government-created economies of scale and barriers are often put into effect and you will learn what leads to these trade decisions.
Over the course of several weeks, you will play the role of a consultant to a Fortune 500 company. In this role, you will submit a series of short papers explaining the company’s success as an effective price maker or what they need to do to be successful as a price-making firm.
You will see how limiting price or capacity can create strategic barriers and you will evaluate the practices of uniform pricing, and first-, second-, and third-degree price discrimination. Finally, you will learn to differentiate between risk and uncertainty so you can manage risks accordingly and make informed decisions when variables are uncertain.
Throughout this course, weekly topics may include but are not limited to:
- Supply, Demand, Profits and Market Equilibrium
- Marginal Analysis and Basic Estimation Techniques
- Consumer Behavior and Elasticity
- Demand Estimates, Forecasting and Production Cost in the Short Run
- Production Costs and Cost Estimates
- Decisions in Competitive Markets
- Decisions in Oligopolies and Advanced Pricing Techniques
- Risk, Uncertainty and Government Regulations
Course Learning Outcomes
Upon successful completion of ECON 6101, you will be able to:
- Develop an understanding of the applications of managerial economics.
- Interpret regression analysis and discuss why it's employed in decision-making.
- Discuss optimization and utility including consumer behavior.
- Assess the relationships between short-run and long-run costs.
- Analyze perfectly competitive markets including substitution.
- Explain uniform pricing and how it relates to price discrimination and total revenue.
- Analyze a chosen company to include the above, but to further make recommendations for the company based upon the weekly topics.
Request More Information Today
To learn more about the online Master of Business Administration curriculum from Benedictine University, including Managerial Economics, call (866) 295-3104 to speak with a program manager or request more information.
Course content and outcomes may vary and are subject to change without notice.