Lecture
Number of hours:  2h X 8 weeks = 16 hours (1 semester)

Classes
Number of hours:  2h X 7 weeks = 14 hours (1 semester)

Objective: 
Firm’s value, economic risk.
Laws of supply and demand, pricing strategies.
Efficient production levels, marginal principle.
Rational decisions, games, auctions.
Profit and not-for-profit organizations management.

Assessment: 
Written examination (70%). Active participation in case study analyses (30%),

Contents: 
The lecture bridges the economic theory and practice, describing methods of decision making on production, pricing , investment and risk management. Methods are mostly based on marginal principle and statistical approach to demand and supply analysis. To broaden understanding of decision making process and market organization elements of game theory are also given. Theoretical concepts are supplied with real examples and case studies. The lecture’s content applies to both profit and not-for-profit organizations management.

Lectures

1. Present value and economic risk.
2. Supply, demand and procing strategies.
3. Efficient production and marginal principle.
4. Rational decisions, game theory, auctions.
5. Profit and not-for-profit organizations management.

Recommended reading: 

• Michael R. Baye, Managerial Economics and Business Strategy, McGraw-Hill. 2009.
• McGuigan, Moyer, Harris, Managerial Economics – Application, Strategy and Tactics,
• Thomson South-Western, 2008.
• Nick Wilkinson. Managerial Economics, A Problem-Solving Approach. Cambridge
• Univeristy Press, 2005
• Robert H. Frank, Microeconomics and Behavior, McGraw-Hill International Edition, 2009.