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This subject provides a review of and extension to basic economic analysis of decisions to enable completing students to assist, advise and interpret business decisions, including pricing, product development and strategic redefinition of businesses (mergers, etc.).
Students are provided with economic tools for handling situations of market power, regulation, global competition, rapid technical change, incomplete information and e-commerce. They will develop a facility in applying benefit-cost analysis to risky decisions with consciousness of the underlying demand and cost functions. Students will gain an appreciation of the value and relevance of economic analysis in assisting and understanding business decisions, economic regulation and e-commerce.
Intended learning outcomes
On successful completion of this subject, students should be able to :
• Explain pricing decisions and product selection and advertising decisions;
• Describe internal and external forces bearing on business decisions;
• Classify business decision responses by type;
• Describe the impact of costs, demand shifts and regulation on business decisions;
• Critically examine and evaluate statistical series on prices and other industry data;
• Demonstrate the use of economics to propose and interpret business and organisational decisions; to use benefit-cost analysis, economics valuation methods and basic optimisation techniques;
• Use business decision spreadsheets.
On successful completion of this subject, students should have improved the following generic skills:
• Formulating, predicting and interpreting business decisions;
• written and oral communication;
• receptiveness to alternative ideas; and
• the synthesis and evaluation of data.
Last updated: 16 November 2019