Offered by ICT Engineering

MEC IS1

Managerial Economics
ECTS 5 Prerequisites Basic courses at the ICT Engineering programme. Basic algebra. Main purpose Managerial Economics is the application of economic theory and methodology to managerial decision making problems within various organizational settings such as a firm or a government agency. The emphasis in this course will be on demand analysis and estimation, production and cost analysis under different market conditions, forecasting and decision making under uncertainty. Students taking this course are expected to have had some exposure to economics and be comfortable with basic algebra. Some knowledge of calculus would also be helpful although not necessary. Competences At the end of this course the student will be able to: Use the theory of the firm to model business organizations Apply demand theory to establish the elasticity of demand Use demand estimation to forecast demand trends and change Apply production theory to manage production Use cost theory to establish short and long run behavior Describe market structures to establish market equilibrium Use game theory to decide on strategies Use pricing strategies to enable organizational coherence Carry out investment analyses to manage assets and capital Use macroeconomic principles to address market failures

Topics Managerial Economics is the application of economic theory and methodology to managerial decision making problems within various organizational settings such as a firm or a government agency. The emphasis in this course will be on demand analysis and estimation, production and cost analysis under different market conditions, forecasting and decision making under uncertainty. Students taking this course are expected to be comfortable with basic algebra. Teaching methods and study activities Class sessions comprise a mixture of lectures, interactive discussions, case studies, case presentations, and problem solving. Every sessions will contain of three lessons, the first one outlines the application of economic principles and theories to managerial issues and concerns through lectures and interactive discussions, whereas the second one is devoted to presenting cases, discussing cases in addition to solving economic problems. Resources The following textbook is used in class: Dominick Salvatore (2004), Managerial Economics in a Global Economy with Economic Applications Card, 5th edition, South-Western (Thompson) (ISBN/ISSN: 0-324-17187-0) Evaluation To pass the course it is a condition that tuition activities selected as obligatory by the teacher have been carried out within the set deadlines and approved. The student can choose either to be graded according to the Danish grading standards or to receive a pass/fail grade. Grading criteria Mark 12: Awarded to students who have shown excellent comprehension of the above-mentioned competences.

A few minor errors and shortfalls are acceptable. Mark 02: Awarded to students for a just acceptable level of comprehension of the required competences. Additional information 40 lessons with teacher/professor. It is mandatory to participate in each lesson and to do the homework. In case of illness we need documentation from a doctor - and only one day off will be accepted. Responsible Jens Cramer Alkjrsig Valid from 1.3.2012