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Course Name (English)
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ECONOMICS FOR BUSINESS AND MANAGEMENT
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| Course Code |
ECO558 |
| Course Description |
The subject combines economic theories with the tools of mathematics and statistics in the decision making process. Economics for business and management focus on the use of microeconomics principles such as supply and demand, elasticities, resource allocation, diminishing returns, economies of scale and pricing strategies, as important tools of analysis for managerial decision makers.
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| Transferable Skills |
Reflective Learner |
| Teaching Methodologies |
Lectures, Lab Work, Discussion |
| CLO |
| CLO1 |
Assess managerial economic problems in decision-making (PLO1) |
| CLO2 |
Analyze managerial concepts in organization decision-making (PLO2) |
| CLO3 |
Display skills in using software (Eviews/SPSS) related to managerial economics. (PLO3) |
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| Pre-Requisite Courses |
No course recommendations |
| Topics |
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1. Introduction to Business Economics
1.1) Definition and importance of Business Economics
1.2) Business economics in microeconomic environment
1.3) Business economics in macroeconomic environment
1.4) Objectives of the firm
1.5) Concept of economic profit
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2. Basic Training
2.1) Functional Relationship and Economic models:
2.2) Linear and power functions (Quadratic and cubic) Differentiation:
2.3) First derivative, second derivative and partial derivatives
2.4) Optimization Techniques
2.5) Maximum and minimum points
2.6) Substitution Method
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3. Demand Theory
3.1) Determinants of demand.
3.2) Demand function and demand curve function
3.3) Market Demand
3.4) Total revenue, average revenue and marginal revenue
3.5) Relationship between the revenue curves
3.6) Elasticity of demand: Price, Income and Cross elasticity of demand.
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4. Demand Estimation
4.1) Technique of demand estimation
4.2) Demand estimation (multiple regression)
4.3) Least squares method
4.4) Interpretation of regression results
4.5) t- statistic
4.6) Coefficient of determination (R2)
4.7) Standard error of estimation (S.E.E)
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5. Production Theory
5.1) Production function
5.2) Linear and nonlinear (Cobb Douglas Production Function)
5.3) Input-output production tables
5.4) Short-run production
5.5) Law of diminishing marginal returns
5.6) Stages of production
5.7) Optimal employment of a variable input
5.8) Long-run production
5.9) Isoquant and isocost analysis
5.10) Optimal Combinations of Inputs
5.11) Expansion Path
5.12) Returns to Scale
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6. Cost Concepts
6.1) Types of cost
6.2) Short-run cost
6.3) Economies of Scale
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7. Theory of Firms
7.1) Perfect competition
7.2) Characteristics
7.3) Output and pricing strategies in the short-run and long-run (Diagrams and calculations)
7.4) Monopoly
7.5) Characteristics
7.6) Output and pricing strategies in the short-run and long-run (Diagrams and calculations)
7.7) Monopolistic competition
7.8) Characteristics
7.9) Output and pricing strategies in the short-run and long-run. (Diagrams and calculations)
7.10) Oligopoly
7.11) Characteristics
7.12) Analysis of kinked demand curve model
7.13) (Diagrams and calculations)
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8. Pricing Strategies
8.1) Price Discrimination (1st, 2nd and 3rd degree)
8.2) (Calculation based on 3rd degree only)
8.3) Cost Plus Pricing
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| Assessment Breakdown | % |
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| Continuous Assessment | 60.00% |
| Final Assessment | 40.00% |
| Details of Continuous Assessment |
| Assessment Type |
Assessment Description |
% of Total Mark |
CLO |
| Assignment |
Assessment 1 (Individual).
Chapter 1 - 6. (Calculation, MCQ/Short Answers) |
20% |
CLO1
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| Assignment |
Assessment 2. Group Assignment Demand Estimation |
30% |
CLO3
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| Test |
Chapter 5-6. (Calculation and Application, MCQ/Short Answers) |
10% |
CLO2
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| Reading List | | Recommended Text | - Ma'in, M., Mohamad Arshad, A., Mohd Aminuddin, Z., Asmuni, S. & Kaur, G. 2022, Managerial Economics, 2 Ed., 9, MLSCA ASIAN ACADEMY , Selangor [ISBN: 9789671300381]
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| Reference Book Resources | - Kaur, G., Ma'in, M. & Lian, N. P. 2021, Economics For Business and Management, 1 Ed., 9, MLSCA ASIAN ACADEMY Selangor
- Hirschey, M & Bentzen, E. 2016, Managerial Economics, 14 Ed., Cengage Learning
- Keat P.G. & Young P.K.Y. 2014, Managerial Economics: Economic Tools For Today’s Young Decision Makers, 7 Ed., Prentice Hall
- McCann, B., Froeb, K. M., Shor, M. & Ward, M. 2015, Managerial Economics, Cengage Learning.
- Perloff, J. M. & Brander, J. A. 2016, Managerial Economics and Strategy, 2 Ed., Pearson Education
- Salvatore D. 2015, Managerial Economics in a Global Economy, 8 Ed., Oxford Univeristy Press
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| Article/Paper List | This Course does not have any article/paper resources |
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| Other References | This Course does not have any other resources |
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