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ECTS Course Overview



Managerial Economics

* Exchange students do not have to consider this information when selecting suitable courses for an exchange stay.

Course Unit Code114-0509/01
Number of ECTS Credits Allocated6 ECTS credits
Type of Course Unit *Choice-compulsory
Level of Course Unit *First Cycle
Year of Study *
Semester when the Course Unit is deliveredWinter Semester
Mode of DeliveryFace-to-face
Language of InstructionEnglish
Prerequisites and Co-Requisites Course succeeds to compulsory courses of previous semester
Name of Lecturer(s)Personal IDName
WRO25Ing. Tomáš Wroblowský, Ph.D.
LOK02Ing. Aleš Lokaj, Ph.D.
GRE0018Ing. Jiří Gregor, Ph.D.
BAD0012Ing. Ondřej Badura
Summary
I. Market Structure Analysis and the Position of the Firm
• Structural Analysis of Industries
• Perfect Competition and Monopoly
• Monopolistic Competition and Oligopoly
• Typology of Competition (market, nonmarket etc.)
• Competition Strategies of Firms

II. The Firm – its Production, Costs and Profit
• Production Function
• The Optimal Combination of Inputs
• Types of Costs (short run, long run)
• Relative Costs of Competitors
• Return and Profit
• Profit – maximizing Employment of Variable Inputs (Labour, capital, natural resources)
• Case studies
• Break – Even Analysis, Shut – Down Analysis
• Alternative Models of Firm Behaviour

III. Demand Analysis
• Industry and Firm Demand Curve
• Theory of Consumer Behaviour
- Consumer Equilibrium
• Price and Pricing Practices
- Price Discrimination
• Game Theory
- Types of Game Theories
• Touches (contacts) to Marketing

IV. Government Intervention in the Market Economy
• Government Intervention in the Czech Republic and EU countries - Typical Features and Comparison
• Impact of Tax System
• Government and Trade Unions on the Labour Market
• State Ownership and Privatization
• Regulatory Responses to Structure Failures and Financial Crisis (2008, 2009)
• State Ownership and Privatization
• The Impact of Different Government Types on Economic Policy (one – party gov., minority gov., coalition gov.)

V. International Context of Decision – Making in the Firm
• Conditions of Trade barriers, Political Events, etc.)
• Globalization and its Projections Towards Firms
• The In – flow of Foreign Capital (Investments)
• Economic Integration (mainly EU)
• Monetary Integration
- Rate of Exchange (mainly EU)
- Interest rate

VI. Decision Making in the Environment of Uncertainty
• Risk and Uncertainty
• Risk and Probability
• Risk in Economic Analysis
- Indifference Curves
• Asymmetric Information
• Selected Topics from Economics of Information and from Theory of Information

VII. Forecasting in the Firm
• Types of Economic Forecasts
• Factors Affecting Economic Variables
• The Main (Typical) Forecasting Methods
• Problem of Accuracy of Economic Forecasts

VIII. Institutional Environment of the Firm
• Formal and Informal Institutions
• Institutional Framework of the Firm – Decision
• Law Affecting the Firm
- Regulatory Environment of the Firm
- The Enforcement of the Law
- Antitrust Acts
- “Regulator – capture” Theory
• Externalitites and their Solution
• “Share – holding” and “stake – holding”
• Socially Accountable Firms
Learning Outcomes of the Course Unit
The aim of the course is the ability of study – participants to apply general economic theory, mainly microeconomics, to business and managerial decision processes. The course creates platform for purposeful interconnection between traditional economic theory and the theory of decision making. In some sense the course of managerial economics represents the bridge between relatively abstract theoretical background of rational decision making and managerial practice. The emphasis is selectively laid on those microeconomic topics that are the most helpful to realistic interpretation of economic environment surrounding the firm. The natural focus of the course is represented by the theory of the firm. There are overlaps to management, marketing, psychology, macroeconomics, institutional economics, sociology.
Course Contents
Theory of consumer‘s behaviour (theory of demand, elasticities and their practical implications)
Theory of firm‘s behaviour (costs, economies of scale and economies of scope)
Market structures (decision making in different market structures, games theory)
Imperfect and asymmetric information (risk and uncertainty, decision making process with imperfect information, moral hazard and adverse selection)
Firm in macro environment (interaction between firms and central authorities, public choice theory)
Recommended or Required Reading
Required Reading:
Png I., Lehman D.: Managerial Economics. 3rd edition. Oxford. Blackwell Publishing 2007, ISBN 9781405160476
Png I., Lehman D.: Managerial Economics. 3rd edition. Oxford. Blackwell Publishing 2007, ISBN 9781405160476
Recommended Reading:
Wilkinson, N.: Managerial Economics: a Problem-Solving Approach. Cambridge. University Press 2005. ISBN: 0-521-52625-6.
Mansfield E., N. A. Doherty, W. B. Allen, K. Weigelt: Managerial economics - Theory, Applications, and CASE. 6th edition. New York. W. W. Norton & Company, Inc. 2005. ISBN 0-393-92496-3

Planned learning activities and teaching methods
Lectures, Individual consultations
Assesment methods and criteria
Tasks are not Defined