MN3028 Managerial economics
Students may bring into the examination hall their own hand held electronic calculator. If calculators are used they must satisfy the requirements listed in Section 3 Assessment.
May not be taken with EC2066 Microeconomics.
Prerequisites (applies to degree students only)
EC1002 Introduction to economics and either MT105A Mathematics 1 or MT1174 Calculus.
Basic microeconomics i.e. supply, demand, consumer theory, labour supply, neo-classical theory of the firm, production, costs, factor demands, perfect competition, monopoly, monopolistic competition, regulation, public goods, welfare etc. Alternative theories of the firm, internal organisation of the firm, market structure, efficiency wages, incentive structures, human resource management etc. as well as some industrial organisation theories of commonly used pricing practices.
Individual (one person) decision making under uncertainty, attitudes to risk and the value of information. Theory of games i.e. strategic decision making, with applications to oligopoly, collusion, product differentiation, entry deterrence etc. The effects of asymmetric information in areas such as bargaining, bidding and auctions. Situations of moral hazard and adverse selection.
A knowledge of constrained maximisation and lagrangian functions would be helpful for students taking this subject.