Managerial Economics
Syllabus
Unit 1 of 3: The principles of managerial economics
Unit Description
In this unit will introduce the linkages that exist between economic principles and business
decision-making. We will establish how the economic forces of supply and demand make the
market structure and determine prices, and look at price and consumer income elasticity to see
in what way they can inform and impact business decision-making. We will look at the price
mechanism, the concept of efficiency, elasticity and the concept of market intervention.
The unit will build a general overview of a managerial economic analytical framework that uses
diagrams and equations which help explain the theoretical and applied concepts.
Student Learning Outcomes:
1. Understand the linkage between economic principles and business decision-making
2. Establish how the economic forces of demand, supply and the role of prices, in addition,
to price and consumer income elasticity can inform and impact business decisionmaking
3. Build a general overview of a managerial economic analytical framework that uses
diagrams and equation which help explain the theoretical and applied concepts
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Managerial Economics
Syllabus
Unit 1: The principles of managerial economics
Lesson 1:
The decisionmaking manager
Lesson 2:
Understanding
the basics of
economics and
the prices
mechanism
Lesson 3:
Market forces of
supply and
demand
Introduction: Video
Lectures:
 Decision making process
 Porter’s five forces model
Readings:
 The decision-making manager
 Porter's 5 Forces
 The Five Competitive Forces That Shape Strategy
 Porter’s Five Forces of Competitive Position Analysis
 Porter's 5-Forces Model
Application: Lesson 1 Application
Summary: Video
Assessment: Lesson 1 Assessment
Introduction: Video
Lectures:
 Understanding the basics of economics
 The price mechanism
Readings:
 Understanding the basics of economics and the prices mechanism
 Factors Of Production
 Economic Efficiency – Examples in the Real World
 Production possibility frontiers
Application: Lesson 2 Application
Summary: Video
Assessment: Lesson 2 Assessment
Introduction: Video
Lectures:
 Supply and demand analysis
 Factors influencing supply and demand
Readings:
 Market forces of supply and demand
 Why chip shop owners are raising prices
 China looks to boost consumer demand
 American Giant: The problems of being an overnight success
 Rolls-Royce gears up for Singapore production
 Economics Basics: Supply and Demand
 Using technology to improve economies: A Vodafone case study
Application: Lesson 3 Application
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Lesson 4:
Understanding
the impact of
price changes
Lesson 5:
Market
intervention and
the creation of
ceiling and floors
End of Unit 1
Managerial Economics
Syllabus
Summary: Video
Assessment: Lesson 3 Assessment
Introduction: Video
Lectures:
 Price elasticity of demand
 Price elasticity of supply
Readings:
 Understanding the impact of price changes
 Price Elasticity Of Demand
 Price elasticity of demand
 Price Elasticity Of Demand
 Price elasticity of supply and demand
 The recession's impact on consumers
Application: Lesson 4 Application
Summary: Video
Assessment: Lesson 4 Assessment
Introduction: Video
Lectures:
 Impacts of government action
 Consumer and producer surplus
Readings:
 Market intervention and the creation of ceiling and floors
 Price Floors and Ceilings
 Microeconomics - Price Ceilings and Floors
Application: Lesson 5 Application
Summary: Video
Assessment: Lesson 5 Assessment
Assessment: Unit 1 Quiz
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Managerial Economics
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Unit 1 Reading List
Dailey, Kate. (2013, March 10). American Giant: The problems of being an overnight success, BBC. Retrieved
from http://www.bbc.co.uk/news/business-21680884
Economic Efficiency – Examples in the Real World, Economicefficiency.net. (n.d.). Retrieved from
http://www.economicefficiency.net/Economic-Efficiency-Examples.html
Factors Of Production, Investopedia. (n.d.). Retrieved from
http://www.investopedia.com/video/play/factors-production/
Godfrey, Ben. (2012, November 13). Why chip shop owners are raising prices, BBC. Retrieved from
http://www.bbc.co.uk/news/business-20317781
Heakal, Reem. (n.d.). Economics Basics: Supply and Demand, Investopedia. Retrieved from
http://www.investopedia.com/university/economics/economics3.asp
Microeconomics - Price Ceilings and Floors, Investopedia. (n.d.). Retrieved from
http://www.investopedia.com/exam-guide/cfa-level-1/microeconomics/price-ceilings-floors.asp
Porter's 5 Forces, Investopedia. (n.d.). Retrieved from http://www.investopedia.com/terms/p/porter.asp
Porter's 5-Forces Model, Encyclopedia of Business, 2nd ed. (n.d.). Retrieved from
http://www.referenceforbusiness.com/management/Or-Pr/Porter-s-5-Forces-Model.html
Porter’s Five Forces of Competitive Position Analysis, CGMA. (2013, June 12). Retrieved from
http://www.cgma.org/Resources/Tools/essential-tools/Pages/porters-fiveforces.aspx?TestCookiesEnabled=redirect
Price Elasticity Of Demand, Investopedia. (2014, March 12). Retrieved from
https://www.youtube.com/watch?v=Pduf_fpshkU
Price Elasticity Of Demand, Investopedia. (n.d.). Retrieved from
http://www.investopedia.com/terms/p/priceelasticity.asp
Price elasticity of demand, economics Online. (n.d.). Retrieved from
http://www.economicsonline.co.uk/Competitive_markets/Price_elasticity_of_demand.html
Price elasticity of supply and demand. (2014, February 9). Retrieved from
https://www.youtube.com/watch?v=DA4DNRcOkuU
Price Floors and Ceilings, EconPort. (2006). Retrieved from
http://www.econport.org/content/handbook/Equilibrium/Price-Controls.html
Production possibility frontiers, Economics Online. (n.d.). Retrieved from
http://www.economicsonline.co.uk/Competitive_markets/Production_possibility_frontiers.html
Reuben, Anthony. (2009, May 26). The recession's impact on consumers, BBC. Retrieved from
http://news.bbc.co.uk/1/hi/business/8058987.stm
Soufani, Kahled. (2015). Market forces of supply and demand.
Soufani, Kahled. (2015). Market intervention and the creation of ceiling and floors.
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Managerial Economics
Syllabus
Soufani, Kahled. (2015). The decision-making manager.
Soufani, Kahled. (2015). Understanding the basics of economics and the prices mechanism.
Soufani, Kahled. (2015). Understanding the impact of price changes.
Sudworth, John. (2012, December 7). China looks to boost consumer demand, BBC. Retrieved from
http://www.bbc.co.uk/news/business-20635927
Syed, Saira. (2012, February 2). Rolls-Royce gears up for Singapore production, BBC. Retrieved from
http://www.bbc.co.uk/news/business-16789111
The Five Competitive Forces That Shape Strategy, Harvard Business Review. (2008, June 30). Retrieved from
https://www.youtube.com/watch?v=mYF2_FBCvXw
Using technology to improve economies: A Vodafone case study, Business Case Studies. (n.d.). Retrieved
from http://businesscasestudies.co.uk/vodafone/using-technology-to-improveeconomies/introduction.html#axzz3diT3BmwF
Unit 1 Assignment Resources
Apple Inc. (AAPL) Is the Biggest Porter Force On Its Supply Chain: BAML, Value Walk. (2012, September 25).
Retrieved from http://www.valuewalk.com/2012/09/apple-inc-aapl-is-the-biggest-porter-force-on-its-supplychain-baml/
Arline, Katherine. (2015, February 18). Porter's Five Forces: Analyzing the Competition, Business News Daily.
Retrieved from http://www.businessnewsdaily.com/5446-porters-five-forces.html
Butler, Sarah. (2014, February 21). Independent bookshops in decline as buying habits change, The
Gardian. Retrieved from http://www.theguardian.com/books/2014/feb/21/independent-
bookshops-campaign
Kehoe, William J., Bass, Lucien L., III. (2004, July). Tariffs in global business: concept, processes, and case
examples. Retrieved from http://www.freepatentsonline.com/article/Journal-International-BusinessResearch/166823563.html
Massie, Allan. (2012, December 31). Bookshops can't compete with Amazon on price. If they want to
survive, they have to provide a personal touch, The Telegraph. Retrieved from
http://blogs.telegraph.co.uk/culture/allanmassie/100067629/bookshops-cant-compete-withamazon-on-price-if-they-want-to-survive-they-have-to-provide-a-personal-touch/
Radcliffe, Brent. (n.d.). The Basics Of Tariffs And Trade Barriers, Investopedia. Retrieved from
http://www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.asp
Sainsbury Annual Report 2015. (2015). Retrieved from http://www.j-sainsbury.co.uk/investorcentre/reports/2015/ar-2015/
Stucky, Janaka . (2012, January 14). Independent Bookstores: How To Compete With Amazon,
Huffington Post. Retrieved from http://www.huffingtonpost.com/2012/01/14/independent-
bookstores-amazon_n_1201676.html
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Using technology to improve economies: A Vodafone case study, Business Case Studies. (n.d.). Retrieved
from http://businesscasestudies.co.uk/vodafone/using-technology-to-improveeconomies/introduction.html#axzz3diT3BmwF
Vodafone Group Plc Interim Results: For the 6 months ended 30 September 2012. (2012, November 13).
Retrieved from
https://www.vodafone.com/content/dam/vodafone/investors/financial_results_feeds/half_year_30sep
tember2012/p_halfyear2012.pdf
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