MBAD602

All functional areas of business -- accounting, finance, marketing, and production -- employ microeconomic techniques and principles. Therefore, it is important that any manager operating in the field of business be able to think like an economist and effectively communicate ideas molded from an economic perspective.

This course is divided into two main components: (1) a study of the various ways in which microeconomic principles and quantitative tools can be used to aid managers in making sound decisions. This course applies the ideas and methodology of economics to analysis of the firm, key decisions within the firm, and the industry. Topics coverd include the balance of payments, international flow of funds, international parity relationships, costs, pricing, competition, economic efficiency, and industry equilibrium and change. Particular attention is paid to behavior of the firm and industries when uncertainty and transaction costs exist. Issues of public policy, especially regarding antitrust issues, are also covered; (2) an introduction to the main macroeconomic phenomena that affects the management of a corporation.