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Strategic Business Management - Microeconomics

Approx. 25 hours to complete

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Course Summary

Learn how microeconomics can help managers make better strategic decisions. Understand how cost structures, market structures, and behavior of firms in these structures affect outcomes.

Key Learning Points

Understand how microeconomics can help managers make better strategic decisions
Analyze cost structures and market structures to make better decisions
Learn how the behavior of firms in different structures affects outcomes

Learning Outcomes

Ability to apply microeconomic concepts to strategic decision making
Understanding of cost structures and market structures
Ability to analyze the behavior of firms in different structures

Prerequisites or good to have knowledge before taking this course

Basic understanding of microeconomics
Familiarity with business terminology

Course Difficulty Level

Intermediate

Course Format

Online self-paced
Video lectures
Quizzes

Similar Courses

Microeconomics: The Power of Markets
Economics of Money and Banking

Related Education Paths

Notable People in This Field

Steven Levitt
Tim Harford

Related Books

Description

This course weds business strategy with the principles of microeconomics. It offers valuable a powerful toolbox together with cases and lessons across all major functions of business, management, from finance, operations management, and marketing to human resource management, organizational behavior, statistics, and, of course, business strategy.

Outline

Introduction to Microeconomics for Managers
Microeconomics for Managers: Introduction
Intro to UCI's Power of Microeconomics
An Intro to Microeconomics for Managers
Microeconomics in Our Everyday Business & Personal Lives
Microeconomics Defined; Major Economic Models
The Scarcity Problem; Three Basic Questions Every Nation Must Answer
The Production Possibilities Frontier & Opportunity Costs
The Fundamental Concepts of Microeconomics & Course Overview
Syllabus
Weekly Topics
Lesson 1

Supply and Demand
The Law of Demand, Income-Substitution Effects, and Demand Curve Shift Factors
Change in Demand vs. Change in Quantity Demanded; The Market Demand and Supply Curves; Supply Curve Shift Factors
Equilibrium; Price Effects of Supply and Demand Curve Shifts
Price Effects of Supply and Demand; Curve Effects
Supply & Demand Analysis in Business Action
Weekly Topics
Lesson 2 Quiz

An Introduction to Consumer Theory
An Introduction to Consumer Theory
Consumer Choice; Cardinal vs. Ordinal Utility; Marginal vs. Total Utility; Downward Sloping Demand
Consumer Optimization; The Equimarginal Principle; Nominal vs. Real Income; Income and Substitution Effects
Demand Price Elasticity; The "Units of Measure" and "Choice of Units" Problems; Price Elasticity Formula
Elastic, Unit Elastic, and Inelastic Demand; Demand Price Elasticity Determinants
Price Elasticity and Total Revenue; Pricing and Marketing Strategies
Strategic Marketing and Microeconomics
Weekly Topics
Lesson 3

Production Theory
Overview of Production Theory and the Production Function
Average, Marginal, Variable, and Total Costs; The Marginal Product and Law of Diminishing Return
Marginal Cost; The AFC, ATC, and AVC Curves
Long Run Cost Analysis and Economies of Scale
Diseconomies of Scale; Minimum Efficient Scale; Natural Monopoly; The Structure-Conduct-Performance Paradigm
Accounting vs. Economic Profits
The Law of Supply; The Price Elasticity of Supply; An Overview of Operations and Supply Chain Management
Weekly Topics
Lesson 4

Perfect Competition
Overview of Industry Structure, Conduct, and Performance
Assumptions of Perfect Competition; The P=MR Condition
Market Failures that Lead to Imperfect Competition; Externalities and the Public Goods Problem
Pricing and Production Rules; P=MR=MC; The Shutdown Rule
Long Run Equilibrium; Normal or Zero Economic Profits
Allocative vs. Productive Efficiency; Pareto Optimality; Consumer and Producer Surplus and Deadweight Loss
Efficiency vs. Equity; Normative vs. Positive Analysis
Weekly Topics
Lesson 5

Monopoly and Monopolistic Competition
Why Study Imperfect Competition?
Regulating Natural Monopoly; The P=AC Rule; X-efficiency Under Cost-Plus Pricing; Schumpeter’s Argument for Monopoly
Monopoly Defined and Monopoly’s Pricing Rule
Monopolistic Competition; Product Differentiation
Market Conduct Under Monopolistic Competition
An Introduction to Management Strategy
Weekly Topics
Lesson 6

Oligopoly and Strategic Management
Oligopoly Defined; Strategic Interactions and Mutual Dependence Recognized
Major Sources of Oligopoly
Market Power and Action; Cooperative vs. Non-Cooperative Behavior; Explicit Collusion
Tacit vs. Explicit Collusion; Forms of Tacit Collusion; Models of Oligopoly Conduct
Joint Profit Maximization Model; Why Cartels Can Fail; Price Leadership Model
Game Theory and the Prisoner’s Dilemma; The Payoff Matrix; The Nash Equilibrium
Weekly Topics
Lesson 7

Strategic Capital Finance
Capital Analysis in the Real World; Big Questions of Corporate Finance
Three Categories of Capital Goods; Interest Rate Defined; Rate of Return
Depreciation; Theory of Loanable Funds; Two Interest Rate Functions
How Shifts in Demand and Supply Affect Interest Rates; Investment Analysis Over Time; Net Present Value; Perpetuities
NPV In the Real World; NPV Equations
Interest Rates In The Real World; Factors Determining Interest Rates
The Capital Asset Pricing Model
Weekly Topics
Lesson 8

Land, Labor, and Organizational Behavior
The Big Questions; Key Concepts of Organizational Behavior
The Wage Rate, Unions, and Monopsony
The Derived Demand for Labor; The Marginal Productivity Theory of Resource Demand; The Profit Maximizing Rule; MRC=MRP
Wages and Productivity; Wages and Product Prices; The Backward Bending Curve
Wages in Imperfectly Competitive Labor Markets; Company Town Monopsony; Labor Union Monopoly
Factors Affecting Wage Differentials; Compensating Differentials; Quasi-rents; Human Capital
How Land is Priced; Rent Versus Economic Rent
The "Corn Wars" and Theory of Ricardian Rents; Property Rights
Henry George’s Land Tax; Tax Incidence Analysis
Determinants of the Price of Land and Rents; Rent Seeking
Weekly Topics
Lesson 9

Public Goods, Externalities, and Income Redistribution
The Logic of Government Intervention
Public vs. Private Goods; Non-rival Consumption; Non-excludability; Free Rider Problem
Economic Efficiency and Public Goods; Market Demand for Public Goods
Benefit-Cost Analysis and the Decision Rule
Negative and Positive Externalities
Correcting Market Failures; Pigovian Taxes and Subsidies, Direct Regulation, Lawsuits, Coase Theorem
Direct Government Intervention; Pigovian Taxes and Subsidies; Internalizing Externalities
Wealth, Poverty, and the Redistribution of Income; Progressive, Proportional, and Regressive Taxes
Public Choice, Median Voter Model, and Paradox of Voting
Weekly Topics
Lesson 10

Finals Week
Final Exam

Summary of User Reviews

Discover how to apply microeconomics principles to strategic business management with this comprehensive course on Coursera. Users have praised the course for its engaging content and practical applications. Overall, this course has received positive reviews from students.

Key Aspect Users Liked About This Course

The practical applications of microeconomics principles to strategic business management are highly appreciated by many users.

Pros from User Reviews

Engaging and informative content
Practical applications of microeconomics principles
Well-structured course material
Excellent instructor support
Great value for money

Cons from User Reviews

Some users found the course material to be too basic
The course may be challenging for beginners
Limited interaction with other students
The course may require a significant time commitment
Some users experienced technical issues with the platform

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