| Semester 2, 2022 Springfield On-campus | |
| Units : | 1 |
| Faculty or Section : | Faculty of Business, Education, Law and Arts |
| School or Department : | School of Business |
| Grading basis : | Graded |
| Course fee schedule : | /current-students/administration/fees/fee-schedules |
Staffing
Examiner:
Overview
Managerial economics is the study of how to use available resources to achieve business goals. This course introduces students to a problem solving and business decision making approach in order to become informed regarding practical managerial pricing and firm investment decisions. The course emphasises the relevance of the conventional economics model to formulation of sound business decisions on pricing and investment when understanding of consumer and rival firms behaviour is necessary. Upon completing this course students should be able to demonstrate an understanding of the economics model of decision making, particularly pricing and investment decisions in contexts characterised by uncertainty.
The course initially outlines the problem solving and decision making process that the conventional economics model utilises to enable firms to make `rational' pricing and investment decisions. A comprehensive explanation of firm profit maximising pricing behaviour in various market structures and under different market conditions is presented and critiqued. Concepts for investment decision making with uncertainty are outlined and developed. Strategic decision making, particularly when faced with uncertainty is discussed and assessed in several business contexts.
Course learning outcomes
On successful completion of this course, students will:
- demonstrate an understanding of the conventional economics model and how it can explain and apply those concepts in real world business contexts;
- demonstrate how as a problem solving approach the rational economic approach can be used to assist in firm decision-making;
- demonstrate an understanding of pricing decision making in the conventional economics model of choice, and apply the model in a real world business context;
- demonstrate the influence of strategic decision making and uncertainty on the pricing and investment behaviour of firms.
Topics
| Description | Weighting(%) | |
|---|---|---|
| 1. | Problem solving and decision making | 20.00 |
| 2. | Pricing, costs and profits | 30.00 |
| 3. | Pricing for greater profit | 20.00 |
| 4. | Strategic decision making | 10.00 |
| 5. | Uncertainty | 20.00 |
Text and materials required to be purchased or accessed
Froeb, L, McCann, B, Shor, M & Ward M, 2019 'Managerial economics: a problem solving approach', 5th edition, Cengage Learning, Australia.
Student workload expectations
To do well in this subject, students are expected to commit approximately 10 hours per week including class contact hours, independent study, and all assessment tasks. If you are undertaking additional activities, which may include placements and residential schools, the weekly workload hours may vary.
Assessment details
| Description | Group Assessment |
Weighting (%) | Course learning outcomes |
|---|---|---|---|
| Problem Solving 1 | No | 15 | 1,2,3,4 |
| Problem Solving 2 | No | 35 | 1,2,3,4 |
| Take home examination | No | 50 | 1,2,3,4 |