- Learn the economic way of thinking (rational choice, optimal allocation of resources, models, etc.)
- Learn various market structures (competition, monopoly, oligopoly): how the firms may compete and what is potential equilibriums. Implications fo strategic management.
- Learn various strategies of pricing for better profit (price discrimination, bundling, tying, etc.)
- Learn main types of costs and cost functions, and their application for decision making.
- Learn various strategies of getting competitive advantage through quality differentiation, R&D and advertising.
- Upon the course completion, the student is expected know how to find optimal distribution of resources, optimal prices and quantities
- Upon the course completion, the student is expected know how to estimate demand on the basis of available data
- Upon the course completion, the student is expected know how to invest in R&D to maximize profit and create competitive advantage
- Upon the course completion, the student is expected know how to make decisions about of price and quantity competition in various market structures
- Upon the course completion, the student is expected know how to make decisions about product quality and degree of differentiation
- Upon the course completion, the student is expected know how to make production and pricing decisions for various cost structures
- Upon the course completion, the student is expected know how to use advertising expenses to maximize profit
- Upon the course completion, the student is expected know how to use marginal analysis in managerial decisions
- Upon the course completion, the student is expected know how to use various techniques of smart pricing (price discrimination, tying, bundling, etc.)
- Demand and SupplyThe basic model of economic theory is the market equilibrium model. In this topic we learn what is demand function and supply function, how they both determine the equilibrium price and quantity. Then we learn how we can use this model to analyse changes in the market (shifts of equilibrium). Finally we talk about governmental regulation of the market.
- Market Power and Profit MaximizationMarket power vs. monopoly. Marginal revenue and its application for profit maximization. Geometrical and algebraic solutions. Marginal revenue curve and its shapes.
- Demand EstimationMain methods of estimating demand function in the real business: 1) survey, 2) experiment, 3) historical data, 4) regression analysis. Advantages and disadvantages of every method. Practical exercises of using these methods.
- Price DiscriminationPerfect Price Discrimination, Group Price Discrimination by Observation, Group Price Discrimination by Versioning
- OligopolyImperfect competition and oligopoly. Strategic interaction and game theory. Quantity competition. Price competition: homogeneous and heterogeneous. Collusion. Competition through R&D and advertising.
- Perfect CompetitionPerfect Competition as concept. Profit Maximization and Loss Minimization by one firm. Market equilibrium in short run an long run.
- CostsCosts types and cost curves (FC, VC, MC, TC, AC, AVC, AFC). Short run and long run.
- Smart PricingBundling, Non-Linear Pricing, Tying
- Test 1 - Demand and Supply. Profit Maximization
- Test 2 - Smart PricingPrice Discrimination Perfect Price Discrimination Group Price Discrimination: Observation Group Price Discrimination: Versioning Bundling Non-Linear Pricing Tying
- Test 3 - Costs and CompetitionCosts, Perfect Competition in Short and Long Run, Oligopoly, Collusion
- Dawsey, A. E. (2014). ECNS 301.01: Intermediate Microeconomics with Calculus.
- O. M. Makoviei. (2018). Organization of Business Games as an Interactive Method of Teaching Foreign Languages to Students of Hei Aquiring Specialties Connected with the Transport Industry. https://doi.org/10.30977/АТ.2219-8342.2018.43.0.118