Course No.

: ECN 104
Course Title: Introductory Managerial Economics
Course Description: This course will provide basic understanding of the economic theory and
analytical tools that can be used in decision making problems. It focuses on the application of
economic models and rationale choice to business decision making. Topics include an overview
of managerial economics; demand and supply; costs of production and the organization of the
firm; market structure and pricing and output decisions; game theory and pricing strategies;
and the economics of information and the role of government in the marketplace.
Credit: 3 units
Pre-requisite: Basic Microeconomics
Course Outline
Part 1 INTRODUCTION
A. Nature, scope and methods of managerial economics
 Definition and relationships with other disciplines
 Elements of managerial economics
 Methods
B. The theory of the firm
 The nature of the firm
 The basic profit-maximizing model
 The agency problem
 Profit Maximizing Problem
 Case Study: Corporate Governance
 Journal Article: Main Agency Problem
Part 2 DEMAND ANALYSIS
A. Demand theory
 Meaning of demand
 Consumer theory
 Factors determining demand
 Case study : Marks & Spencer
 Journal Article :
 Elasticity -Price elasticity, Promotional elasticity , Income elasticity, Cross-
elasticity
 Journal Article
 Case Study
B. Demand estimation
 Models
 Data
 Applications of Methods and Models
 Case study : Determinants of car prices ; The Sports Connection
 Journal Article :
Part 3 PRODUCTION AND COST ANALYSIS
A. Production theory
 Factors of production
 Production functions
 Case study : State spending
  Journal Article
 Marginal analysis
 Case study : Factor Substitution in the National Health Service
 Journal Article
B. Cost theory
 Short-run cost and Cost Functions
 Relevant Cost Decisions
 Case study :
 Journal Article:
C. Cost estimation

Part 4 STRATEGY ANALYSIS

A. Market structure and pricing
B Pricing strategy
C. Investment Analysis
D. Government and managerial policy

Grading Criteria:
1. Major Exams 50%
2. Exercises 30%
3. Journal Article Review and
Presentation 20%

References:
1. Managerial Economics Problem-Solving Approach
Nick Wilkinson (To be uploaded in the drive
2. Managerial Economics
Thomas Maurice
3. Managerial Economics
tutorials point
4. Managerial Economics
Dominick Salvatorre

Prepared by:
Dr. Marissa G. Dela Cruz