Upon successful completion of the course a student will be able to:
· Understand the basic forces governing the operation of competitive markets.
· Analyze the implications of various elasticities of consumer demand for pricing decisions.
· Characterize consumer preferences and constraints.
· Characterize the conditions necessary for efficient input usage.
· Understand the concepts of economies of scale and scope, switching costs and network externalities.
· Distinguish relevant from irrelevant costs for economic decision-making.
· Characterize the conditions under which a loss-making enterprise should continue to operate or should shut down in the short run and long run.
· Understand the conditions that give rise to pricing power and determine how a firm having such power should exercise it.
· Determine if and how a firm can engage in price discrimination and distinguish between the different types of price discrimination.
· Analyze possible strategies when a firm is one of just a few companies in a market.
· Analyze and present relevant information about the strategic conduct of a company.
· Understand how the government can impact the conduct of a firm.
· Analyze the strategic conduct of a firm on a global scale.
· Link the theory presented with the current events in the global economy.