BSQA620 – Managerial Economics
Module code
BSQA620
Module title
Managerial Economics
Prescription
Students will apply economic principles for managerial decision making.
NZQA Level
Level 6
NZQA Credits
20
Delivery method
- Web-Supported
Learning hours
- Directed hours
- 64
- Self directed hours
- 136
- Total learning hours
- 200
Resources required
- Learning Outcomes
- 1) Students will understand the role of managerial economics in the business decision-making
process for profit maximisation.
Key elements
a) Managerial economics versus economics:
- characteristics
- similarities
- differences
2) Students will analyse and evaluate risk and recommend an option for optimal decision making.
Key elements
a) Probabilities
b) Decision trees
c) Capital budgeting
3) Students will derive, analyse and interpret the relationship between factors influencing
demand and quantity demanded.
Key elements
a) Demand estimation:
- regression analysis and demand forecasting
- function
- average revenue curve
- total revenue derivatives
b) Demand analysis:
- elasticities calculations
- implications for optimal pricing
4) Students will explain and analyse the nature of production and its relationship to costs.
Key elements
a) Production:
- short and long run
b) Costs:
- functions
- average cost curve
- total cost derivatives
- economic and accounting.
c) Linear programming
5) Students will select and apply appropriate pricing strategies to imperfect market states.
Key elements
a) Profit maximising outputs in one of:
- monopolistic competition
- oligopoly
- monopoly
b) Pricing strategies, three of:
- price discrimination
- contribution margins
- game theory
- limit entry pricing
- mark up pricing
- marginal pricing
- competitive bids
6) Students will demonstrate an understanding of the legal constraints placed on pricing and
competitive decisions.
Key elements
a) Commerce Act 1986:
- sections 27 and 36
b) World Trade Organisation anti-dumping rules
