Managerial Economics - 1.1
SM1.21 Managerial Economics
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Welcome to session 1
Dr. H. Stoessel
S A V
Managerial Economics 1999
Managerial Economics - 1.2
Introduction
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Objectives
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Evaluation
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Course Outline
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Course timetable
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Methodology
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Definitions
Dr. H. Stoessel
S A V
Managerial Economics 1999
Managerial Economics - 1.3
Objectives
To get to know each other
 To understand the structure and
content of the course
 To know what you are expected
to do and how to obtain good
grades
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Dr. H. Stoessel
S A V
Managerial Economics 1999
Course Objectives
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
Managerial Economics - 1.4
To understand the basic of the
Economic Theory
To provide a foundation in managerial
economics and the application of
economic theory in industry and
technological based organizations
Dr. H. Stoessel
S A V
Managerial Economics 1999
Evaluation of Course
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2-3 graded Quizzes
Presentation
Participation
Final Exam
Self evaluation
Course evaluation
Dr. H. Stoessel
S A V
Managerial Economics - 1.5
20%
20%
10%
50%
Managerial Economics 1999
Managerial Economics - 1.6
Course Outline
 The Nature and
Scope of MECS
 Optimization
Techniques and
Management Tools
 Demand Theory
 Demand Estimation
and Forecasting
 Production and Cost
Dr. H. Stoessel
 Cost Theory
 Market Structure
 Strategies and
Pricing
 The Role of the
Government
 Risk Analysis and
Capital Budgeting
 Tutorial
S A V
Managerial Economics 1999
Managerial Economics - 1.7
Course Timetable
Week 2
Week 3
Week 4
Introduction
Theory of the
Firm
Optimization
Demand and Theory of
the consumer
Demand Estimation
Week 5
Week 6
Week 7
Week 8
Production and Cost
Analysis
Cost Theory and
Estimation
Market Structure
Strategies and Pricing
Week 9
Week 10
Week 11
Week 12
The Role of the
Government
Risk Analysis
Capital Budgeting
Tutorial and
reserve
Final Exam
Week 1
Dr. H. Stoessel
S A V
Managerial Economics 1999
Managerial Economics - 1.8
Methodology
“lecturing”
 Case Studies
 Home study
 Learning by discovery
 Workshop
 Project method
 Q&A

Dr. H. Stoessel
S A V
The best
way to
learn is
to teach
Managerial Economics 1999
Managerial Economics - 1.9
Definitions
Manager, Management
 Economics
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(Micro-Macro; Positive,Normative)
Goals of Economic Policy
Dr. H. Stoessel
S A V
Managerial Economics 1999
Managerial Economics - 1.10
The Scientific Approach
Observation
 Economic Analysis
 Statistical Analysis
 Experiments

Dr. H. Stoessel
S A V
Managerial Economics 1999
Managerial Economics - 1.11
Pitfalls
Failing to Keep Other Things
Equal
 The Post Hoc Fallacy
 The Whole Is Not Always The
Sum Of The Parts
 Subjectivity (“Is It a Bird”?)

Dr. H. Stoessel
S A V
Managerial Economics 1999
Managerial Economics - 1.12
Other Issues
Basic Problem of Economic
Organization:
- What commodities to produce
- How to produce them
- For Whom shall goods be
produced
 Inputs and Outputs
 Market, Command and Mixed
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Dr. H. Stoessel
S A V
Managerial Economics 1999