Course Description
Development of the fundamental concepts of scarcity, opportunity cost, and marginal analysis, with an emphasis on problems faced by managers. These concepts are used to explain the structure and performance of firms and industries.
Athena Title
BUSINESS MICRO
Prerequisite
Permission of department
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Course Objectives
The purpose of this course is to teach the basic concepts of microeconomics, and to apply these concepts to an understanding of managing business firms. The course begins with a consideration of the implications of scarcity (including opportunity cost), the pervasiveness of competition, and the desirability of cooperation; a discussion of the importance of marginal evaluation; and the standard microeconomic models of firm behavior. The students will develop an understanding of the relevance of this course to real problems they will face (and have faced) as managers of real firms.
Topical Outline
The Problems and Implications of Scarcity The Economics of Markets and Cooperation The Parallels Between the General Economy and the Firm The Standard Theory of the Firm The Prisoners' Dilemma and the Firm Improving Efficiency and Profits by Mistreating Workers and Customers Why CEOs Are Worth As Much As They Are Paid Does Business Have a Social Responsibility? Why Capitalism Is Cool and Socialism Sucks