Managerial Economics and Strategy

ECO20003 12.5 Credit Points Hawthorn

Duration

  • One semester or equivalent

Contact hours

  • 24 hours face to face + blended

On-campus unit delivery combines face-to-face and digital learning.

Prerequisites

or 
or

Aims and objectives

Managerial Economics and Strategy aims to provide students with an understanding of some of the main economic tools used in making sound managerial decisions in an increasingly complex and competitive business environment. It also aims to assist students to apply those tools to a variety of economic issues faced by business, non-profit organisations and government. Among the topics covered are market structures and their impact on industry performance, the pricing strategies of firms, the use of game theory in interpreting firm behaviour, capital budgeting and information imperfections in markets.
 
Unit Learning Outcomes (ULO)
Students who successfully complete this unit will be able to: 
 
1. Apply an economic decision making framework to a wide range of managerial economic problems;
2. Use the concepts of elasticity and marginal revenue to establish optimal prices for goods and services
3. Identify the costs that are relevant to decision making and distinguish between cost reductions due to scale, scope and learning effects;
4. Understand how firms can best organise themselves to deal with the constraints posed by asymmetric information;
5. Apply the basic concepts of game theory to oligopolistic decision making;