major decision-making pitfalls in Managerial Economics

Q

1. Referring to the course material and class discussions describe the major decision-making pitfalls in Managerial Economics. Name and carefully explain at least one possible decision-making fallacy per each topic covered by the course (eight topics altogether). Next, contrast your description with the relevant benchmark or the optimal decision for each case being discussed.

First, the topics studied during the course (8) subjects

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1. introduction to optimal decisions,
2. using marginal analysis and demand analysis,
3. lecture Optimal Pricing Decisions
4. Production Decisions
5. Cost Analysis
6. Market Structure and managerial decisions
7. Oligopoly Strategies applications of game theory
8. Decision making under uncertainty

Textbooks/handouts:

• Samuelson W. and Marks S., Managerial Economics. Wiley & Sons, 6th edition, 2010

(furtheron referred to as [SM]).

• McMillan, J., Games, Strategies and Managers. Oxford University Press 1992 [McM].

• Begg D., Fischer S. and Dornbusch R., Economics. 10th edition., McGraw-Hill 2011

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