This course is designed to introduce MBA students to basic microeconomic theory at a relatively rapid pace. The focus will be on fundamental economic principles that can be used by managers to think about business problems, including those inside the firm (relating to the problem of administering the firm’s resources in the most cost effective way) and those outside the firm (relating to broader market and government forces that can affect the behavior of firms.) The course will not deal directly with standard “managerial economics,” which tends to emphasize the mathematics and statistical techniques used in optimizing firm decisions. However, every effort will be made to apply basic principles to management problems, mainly those relating to getting incentives right for customers, suppliers, workers, managers, and owners. Accordingly, this course will stress methods of thinking, and MBA students will be evaluated on their ability to recall, use, and extend the methods of thinking that are covered during the
quarter.