Applied Managerial Economics

level of course unit

1. Study cycle, Bachelor

Learning outcomes of course unit

The students are able to:
• name the essential components of a market model and discuss the market equilibrium as an interaction of supply and demand.
• identify the determinants of consumer demand and explain how they respond to external factors such as changes in income.
• explain both the potentials and the limitations of market models based on real-world markets, for example the housing or labor market, and to buttress abstract models with real-life examples.
• understand production decisions in companies and interpret the influences of market structures on price setting.
• examine and critically evaluate current developments on the basis of models.
• use the market model, e.g. to analyze the impact of government intervention and to illustrate the formation of surplus supply or demand.

prerequisites and co-requisites

none

course contents

• Economic thinking and marginal analysis
• Efficient allocation of scarce resources
• Market model and market equilibrium
• Elasticity and pricing
• Cost functions and optimal company production
• Welfare analysis in case of state intervention