COURSE OUTLINE

A  APPLIED MICROECONOMICS (BUSINESS ECONOMICS)  

B  ECONOMICS OF THE EUROPEAN UNION  

C  CONTINUAL ASSESSMENT  

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APPLIED MICRO (BUSINESS ECONOMICS) 

MANAGERIAL ECONOMICS

INDUSTRIAL ECONOMICS FINANCIAL MANAGEMENT

MANAGERIAL ECONOMICS

- Operates within the context of the firm - Uses economic tools as an aid to the efficiency of the firm e.g.

• notions of efficiency, cost and profits

• demand concepts and forecasting

• pricing policies

• investment

INDUSTRIAL ECONOMICSOperates in the context of industry and the general economy Studies more general patterns of organisation  

• Theories of firm behaviour - classical, managerial and behavioural

• The growth of firms - vertical integration, diversification and mergers

• Industrial concentration and competition

•Government intervention e.g. privatisation

 

FINANCIAL MANAGEMENT

Offshoot of Managerial Economics   Assessing environment for investment

• Investment appraisal

• Sources of finance - short - medium - long  

ECONOMIC EFFICIENCYImportant concept in Managerial Economics   

•FACTOR USE

- ensures the lowest possible cost for any level of output (linear programming sometimes used in this regard)    

•COST

- ensures that the optimum level of output is obtained (a) short run (b) long run    

EFFICIENCY (Con)

•X  INEFFICIENCY -relates to attitudinal factors affecting output e.g. management and industrial relations

• TECHNOLOGICAL-relates to capital investment in the most cost effective plant and machinery

•SOCIAL-e.g. external economies of scale – especially important in public utilities- environmental and social priorities

ALLOCATIVE EFFICIENCY

• Concerned with meeting society preference for goods in an optimum manner

• Link with opportunity cost curve

•Transactions Costs and Efficiency