Economics for Management

Module description

This module focuses on problems that arise with decision making in firms, and how you as a manager can address these problems using economics.  The course takes a problems solving approach.  You will be presented with problems that have arisen in real world firms and shown how these problems can be addressed using ideas from economics.  The course requires the ability to critically analyse readings and is based on problem sets.  GCSE level maths or equivalent will be required.

Full module specification

Module title:Economics for Management
Module code:BEE1034
Module level:1
Academic year:2020/1
Module lecturers:
  • Professor Ben Zissimos - Lecturer
Module credit:15
ECTS value:

7.5

Pre-requisites:

None

 

Co-requisites:

none

Duration of module: Duration (weeks) - term 1:

11

Module aims

Economics offers powerful insights into the world of business. This introductory economics course aims:

• to provide an essential, simple, useable body of economics- based tools, which will both provide the basis for further study and equip students with a real understanding of the role of economics in business.

• to encourage students to understand how we as managers can make decisions more effectively and why we can sometimes make poor decisions

• to give students an understanding of how businesses use economic theory to make decisions

• to illustrate how economics is relevant to a number of areas of management

 

 

ILO: Module-specific skills

  • 1. Compute the relevant costs of any decision.
  • 2. Use marginal analysis to make extent (how much) decisions.
  • 3. Make investment decisions that increase firm value.
  • 4. Set optimal prices and price discriminate.
  • 5. Predict industry-level changes using demand/supply analysis.
  • 6. Develop long-run strategies to increase firm value.
  • 7. Use game theory to predict how your actions influence those of others.
  • 8. Solve the problems caused by moral hazard and adverse selection.
  • 9. Align individual incentives with the goals of the company.
  • 10. Align division incentives with the goals of the company.

ILO: Discipline-specific skills

  • 11. Demonstrate reasoning and problem-skills.
  • 12. Demonstrate an understanding of the links between problems in business and economic theory

ILO: Personal and key skills

  • 13. Demonstrate problem-solving and independent study skills
  • 14. Use the ELE and the online resources that are companion to the textbook to develop IT skills

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad
261240

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled22 (2 hours per week)Lectures
Scheduled4-5 (1 hour each)Tutorials
Guided Independent Study12 ( approx 1 hour per week)Web-based activities
Guided Independent Study34 (approx 3 hours per week)Use of Online Resources
Guided Independent Study56 (approx 5 hours per week)Reading
Guided Independent Study22 (2 hours per week)News Research and Reading

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
TutorialsThroughout the term112Feedback on tutorial exercises

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
01000

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Examination1002 hours1-13Exam result and feedback as requested

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Examination (100%)Examination (2 hours) 100%1-13August examination period

Syllabus plan

Week 1: Introduction

Week 2: Identifying Business Opportunities, Understanding Costs and Benefits

Week 3: Extent Decisions and Investment Decisions

Week 4: Pricing Decisions, with Simple and Complex Costs

Week 5: Understanding Markets and Market Structure

Week 6: More Realistic and Complex Pricing

Week 7: Strategic Games and Bargaining

Week 8: Adverse Selection, Moral Hazard

Week 9: Incentive Alignment

Week 10: Review

Indicative learning resources - Basic reading

Managerial Economics: A Problem Solving ApproachInternational Edition by Luke M. Froeb and Brian T. McCann.  Published by Cengage Learning.  Earlier editions, which can be obtained second hand online are fine as well.

Supplementary reading:

The Art of Strategy: A Game Theorist’s Guide to Success in Business and Life by Barry J. Nalebuff and Avinash K. Dixit.

Module has an active ELE page?

Yes

Origin date

01/09/2012

Last revision date

05/09/2018