Economic Analysis

Economic Analysis

Serving as a primer in economics, this course introduces students to the nature and scope of economics and the various approaches used in economic analysis. The theory of consumer behavior is presented to students followed by demand analysis, demand schedule, demand curves and elasticity of demand. The course then moves on to production and optimization of cost and revenue. Students get exposure to product pricing strategies under various market conditions including perfect competition, monopoly and oligopoly. Marginal productivity theory along with its applications is covered as well.

Student Learning Outcomes

On successful completion of the course, students will be able to :

  • Use economic models to study behavior and interpret the results of their models and use these results to make inferences and draw conclusions
  • Graphically depict a market in competitive equilibrium
  • List factors leading to a change in market demand and supply
  • Summarize the impact of changes in the market and present the results
  • Employ the appropriate pricing strategy based on market conditions
  • Take into account all factors affecting cost and revenue and use economics techniques to optimize these variables
  • Understand economies of scale, economies of scope , and cost complementarities, and how each affects the cost of production
  • Categorize economic costs
  • Contrast the decision making process across industries characterized by pure
  • Competition , monopolies, and oligopolies
  • Illustrate common pricing strategies

Activities

  • Students will do a project involving optimizing cost and revenue of a manufacturing plant given a set of market conditions and constraints

Contributors

  • Product Managers
  • Marketing Strategists
  • Sales Personnel

Managerial Economics

This course is designed to provide a solid foundation of economic understanding for use in managerial decision-making. It guides students on the use of managerial economics tools and techniques in specific business settings. The course will offer a comprehensive treatment of economic theory and analysis, using both qualitative and quantitative tools and te c hnique s ( e . g. fore c a sting a nd estimation techniques) associated with the theory. Students get exposed to topics in macro-economics including national income and its fluctuations, business cycles and macro-economic models that governments use to assist in development and evaluation of economic policies.

Student Learning Outcomes

On successful completion of the course, students will be able to :

  • Use stylized examples; determine if a company is optimally employing available resource
  • Calculate demand elasticity from demand equations
  • Understand how prices get determined in markets, how market participants benefit in the form of consumer surplus and producer surplus, and what are the consequences of government intervention
  • Measure the responsiveness of consumers' demand to changes in the price of a good or service, the price of other goods and services, and income
  • Understand the different costs of production and how they affect short and long run decisions
  • Identify causes and consequences of fluctuations in national income
  • Understand macroeconomic models and how their forecasts are used in development and evaluation of economic policies
  • Give examples of the government ensuring the legal behavior of firms

Activities

  • Students will analyze a product company of their choice, study the market for a specific product and track the pricing strategy followed by the company and the responsiveness of consumer demand to changes in the price of the product over a specific time period

Contributors

  • Entrepreneurs
  • Marketing Strategists
  • Finance Officers