Managerial Economics deals with the application of economic theory and the tools of decision science. Topics covered in the course include:

• Theory of demand, supply and market equilibrium
• Differential calculus and optimization techniques
• Theory of consumer choice
• Demand estimation
• Production theory and estimation.
• Cost theory and estimation with calculus
• Market structure
• Perfect competition, monopoly and monopolistic competition
• Oligopoly and strategic behavior
• Regulation and antitrust: the role of government in the economy

The purpose of the course is to provide an introduction to the basic concepts and tools for the study of economic science and their application in a business setting. Managerial Economics examines the current international business environment and combines economic theory, decision science and tools from different areas of management, examining the relationships between them, given that a business seeks to make optimal decisions taking into account the limitations it faces.

The course aims to provide students with:

• basic knowledge of the theories, principles and laws of economics;
• the skills to apply the above theories; and
• the ability to solve problems and transfer their existing knowledge to new situations.

In order for this objective to be achieved, on successful completion of the course students must be able to:

• understand the concept of scarcity and to recognize its various forms in modern-day settings;
• understand business theory and optimization techniques;
• understand, determine and predict the demand for a product or service;
• describe and interpret issues relating to the behaviour of management executives and evaluation of the decisions they make;
• identify and calculate the production and cost of a company;
• to make decisions relating to the determination of pricing policy;
• combine the analysis of demand with the analysis of production and cost in order to show how price and production are determined under different market structures;
• describe and identify the basic characteristics of different market categories;
• make decisions and evaluate the operation of a business in perfect competition both in the short and long run; and
• formulate ideas and judgements and propose solutions to problems using the knowledge and tools they have acquired.