Managerial Economics

Introduction

• Making better managerial economic decisions

1. What Is Managerial Economics and How Do I Apply It?

• What is managerial economics?
• Use economics to solve business problems

2. What Are Customers Buying?

• Demand curve
• Price elasticity
• Real world elasticities
• Shift of the demand curve

3. What Should You Produce?

• Economic profit versus accounting profit
• Economies of scale
• Economies of scale versus scope
• The law of diminishing returns

4. Which Costs Do I Need to Worry about Now?

• Break-even analysis
• What-if analysis for constant profit

5. What Should You Charge for It?

• Profit maximization
• Price discrimination

6. Economics in Action

• Google's money making machine
• Price increases and competitive reaction
• Economic fallacies

Conclusion

• Elements of an economic decision