James Cook University - BX2021: Managerial Economics (Solutions)

A business cannot survive without a solid understanding of cost and revenue estimation, cost effective capital / labour ratios, pricing strategies tailored to market environment, and decision making under uncertainty. This subject focuses on these and other economic concepts that help managers, business owners and those considering starting a business to manage their business successfully. Beyond economics students, the subject provides valuable skills to students who consider exercising their discipline-specific skill in their own business or manage such a business - for example an educational consultant, a pharmacist or an engineering consultant.

Upon finishing the subject, you will be able to:

• explain the relevance of the economic concepts of supply and demand, and production cost and revenue estimation to business decision making;
• discuss the importance of market structure to a price strategy of a business and its market conduct, and, identify the constraints imposed by risk and uncertainty on decision making within a firm;
• and - design an optimal pricing and production strategy for a chosen business.