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23845 Managerial Economics

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2018 is available in the Archives.

UTS: Business
Credit points: 8 cp

Subject level:

Postgraduate

Result type: Grade and marks

Requisite(s): 25841 Analytical Techniques for Decision Making
There are course requisites for this subject. See access conditions.
Anti-requisite(s): 25845 Managerial Economics

Description

This subject introduces the theory of the firm and other major economic themes that provide students with an understanding of managerial decision-making. It outlines the economic forces that influence corporate strategy, enabling participants to acquire a range of skills and expertise expected of corporate managers. The outcomes are achieved using learning strategies that foster the application of leading-edge practices to meet business challenges and to think systematically and strategically about achieving competitive advantage through the management of the firm's resources.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. develop a critical understanding of demand and supply analysis, cost and production functions, the behaviour of competitive and non-competitive markets, sources and uses of market power and competitive strategy including pricing
2. demonstrate the application of the principles of economics within a managerial decision-making process
3. gain a capacity to analyse a business problem and apply techniques of economic analysis to assist in the decision-making in complex and unpredictable business environments
4. gain a critical understanding of the economic environment of business and a capacity to identify and manage the risks posed by unanticipated movements in key economic variables

Contribution to the development of graduate attributes

The subject aims to develop an understanding of economic principles and to enhance skills in high-level problem solving and critical thinking. Managerial Economics is the study of how to manage scarce business resources in order to most efficiently contribute to the achievement of the goals of management. The subject provides models for business analysis and ways to predict the outcomes of managerial decisions. It complements the accounting perspective and provides a basis for understanding finance, marketing and business strategy.

This subject contributes to the development of the following graduate attributes:

  • Business knowledge and concepts

This subject also contributes specifically to develop the following Program Learning Objectives for the Executive MBA:

  • 1.1: research and design a framework for the formulation and implementation of strategies in a local and global context

Teaching and learning strategies

The subject uses lectures, workshop discussion, exercises and case studies to allow participants to build their understanding of the economics of the firm and their analytical capabilities in modelling managerial decisions. These methods will be supplemented with both printed and electronic learning materials and resources. The UTS web-based communication tool (UTSOnline) will be used to share information and encourage interaction between students.

Content (topics)

  • The fundamentals of managerial economics
  • Quantitative demand analysis
  • Modelling individual economic behaviour
  • Productivity and cost analysis
  • The organisation of the firm and the nature of industry
  • Models of competition, monopoly, monopolistic competition and oligopoly
  • Pricing strategies for firms with market power
  • Government in the market place and the importance of macroeconomics for managerial decision-making

Assessment

Assessment task 1: Case Study (Individual)

Objective(s):

This addresses subject learning objective(s):

2, 3 and 4

Weight: 50%

Assessment task 2: Final Examination (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2, 3 and 4

Weight: 50%

Minimum requirements

To pass the subject, students must achieve at least 50% of the marks allocated to the assessment tasks

Required texts

Michael R. Baye, and Jeffrey T. Prince, Managerial Economics and Business Strategy, 8th edn, McGraw-Hill