2012/2013  BA-HA_HU8O  Fundamentals of Managerial Economics and Business Analysis

English Title

Fundamentals of Managerial Economics and Business Analysis

Course information
Language	English
Exam ECTS	7.5 ECTS
Type	Elective
Level	Bachelor
Duration	Summer
Course period	Further information on www.cbs.dk/summer
Time Table	Please see course schedule at e-Campus
Study board	Study Board for BSc in Economics and Business Administration
Course coordinator
Faculty - Rene Leo E. Ordonez, Southern Oregon University Stig Hartmann - Department of Accounting and Auditing
Main Category of the Course
Management
Last updated on 02-01-2012

Learning objectives

Upon the successful completion of this course, the student should be able to: Explain the fundamentals of elasticity - what it is, how to calculate it, how to interpret coefficients of elasticity, what factors influence change in elasticity. Demonstrate understanding of demand and supply elasticity and its relationship to pricing and revenue. Demonstrate understanding of how market forces affect price and quantity. Utilize basic supply and demand analysis to predict the impact on the price and quantity sold of any product. Demonstrate understanding of risk and uncertainty, how to measure them, and then to incorporate these measures into business decision making (decision theory) processes. Demonstrate understanding the relationship between volume, cost, and revenues of products (breakeven analysis)

Prerequisite

Basic computer skills, elementary algebra

Examination

Fundamentals of Managerial Economics and Business Analysis

4 hour written exam: Type of test Written Exam Marking scale 7-step scale Second examiner No second examiner Exam period Summer Term Aids Please, see the detailed regulations below Duration 4 Hours 4-hour problem-solving and case analysis exam Closed books and notes   Exam aids:  Dictionary, calculator and computer are allowed.

Course content

The course covers basic economic relationships, demand and supply analysis, forecasting, production and cost theories, market structures and models, pricing practices and capital budgeting. The course will be delivered via a combination of lecture, problem-solving and case analysis requiring students to apply the basic mathematical and analytical tools in various topical areas of managerial economics.   Course Topics to Include: 1) Basic Mathematics and its Applications in Economics and Business 2) Time value of money (future value, present value of money, cash flow analysis etc) 3) Risk Assessment and Decision Theory 4) Demand Estimation and Analysis 5) Production and Cost Theory and Analysis, including cost volume analysis 6) Index Numbers 7) Optimization with Linear Programming   The course’s development of personal competencies:   Students in the class will practice and rely upon their technical and quantitative skills to successfully navigate through the course.  As the class will be fast-paced and will be requiring significant outside the classroom activities, e.g. working on weekly problem sets and cases, students must be self-directed and must practice effective time-management.  In the classroom, students are expected to participate in class discussions; they will use and demonstrate their ability to think critically, evaluate a problem, and to explain their answers or position in a logical, clear and concise manner.

Teaching methods

The course will be a combination of lectures, situational problem solving and case analysis. Lectures will address the concepts and topics outlined above.

Expected literature

Managerial Economics, 10th Edition, Christopher Thomas, McGraw-Hill, ISBN-13 9780073375915 (768 pages)