Learn how to use economics to make better business decisions. Explore economic theories to strategize and solve business problems from demand and competition to pricing products.
- As a business person, do you make decisions based on thoughtful research and economic calculations? Maybe sometimes, but not all the times and not systematically. Managerial economics decisions are good business and can lead to higher profits and a competitive advantage. I'm Stefan Michel and in this course, I'm going to show you why it is essential to make economically sound decisions and how to do it. I will walk you through the thought process, demonstrate the calculations, and give you real world applications and examples.
Not only will you learn that managerial economics is very applied. Studying economics can actually be quite fun. We review the demand theory and price elasticity. We look at how you decide what to produce, and how your cost structure creates a competitive advantage through economies of scale and scope. We review different categories of costs and learn how to set the right price for your product and service, and we see managerial economics in action.
This course is going to help you to take your business to the next level, just by making smarter decisions. Let's get started.
- What are customers buying? (demand theory)
- What should we produce? (production theory)
- Which costs do I need to worry about now? (cost theory)
- What market am I in? (competition theory)
- What should we charge for it? (pricing theory)
To understand what managerial economics looks like in practice, Stefan explains how Google's auction-based advertising system employs the principles of game theory and how understanding this can help decision makers to outmaneuver their competitors.
- Using economics to solve business problems
- Understanding price elasticity
- Demand curve shifts
- Economics of scale vs. scope
- Break-even and what-if analysis
- Profit maximization
- Economics in action