Course Outline--Economics for Managers
Philip Leatherwood,
Senior Lecturer of EconomicsKazakh Institute of Management, Economics, and Forecasting
Introduction
--How to approach the study of economicsI. The Economic Problem
Wants versus resources
Economic method
Ceteris Paribus
Production possibilities
Law of diminishing returns
Law of increasing costs
Planning versus free markets
II. Demand and Supply
Law of Demand
Changes in demand
Law of Supply
Changes in supply
Market system and The Invisible Hand
Limitations of the market system
Elasticities of demand
III. Consumer Theory
Consumer preferences
Budget Constraints
Utility
Labor vs. Leisure
Estimating demand
Consumer Surplus
IV. Theory of the Firm
Profit Maximization
Estimating the firm’s demand curve
Marginal and Average Costs
Input Optimization
Marginal Technical Substitution
Isoquant-Isocost
Alternatives to Profit Maximization
Elasticity of Supply
Producer and Social Surplus
V. Pure Competition
Price and Output Determination
Measurements of cost, revenue, profit
Short run responses to price change
Long run responses
Questions of Efficiency
VI. Monopoly
Barriers to entry
Price and Output Determination
Regulating monopolies
Maximizing Social Surplus
VII. Monopolistic Competition
Characteristics
Price and Output Determination
Product Discrimination
Efficiency sacrificed?
VIII. Oligopoly
Characteristics
Price and Output Determination
Kinked Demand
Market Share Considerations
IX. Resource Markets
Resource pricing
Marginal productivity
Optimal resource mix
Labor markets
X. Technology and Innovation
Labor Productivity
Research and Development
The Learning Curve
XI. Strategic Behavior
Price Discrimination
Collusion and Cartels
Game Theory and the Prisoners’ Dilemma
Risk Analysis
Government Regulation
XII. Managing in the World Economy
Comparative Advantage
Exchange rate determination
Purchasing Power Parity
Kazakhstan and the Transition Economies