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DRPS : Course Catalogue : Business School : Business Studies

Undergraduate Course: Business Economics (BUST08005)

Course Outline
SchoolBusiness School CollegeCollege of Humanities and Social Science
Credit level (Normal year taken)SCQF Level 8 (Year 2 Undergraduate) AvailabilityAvailable to all students
SCQF Credits20 ECTS Credits10
SummaryThe place of managerial economics in the making of business decisions; profit and other business objectives; forecasting; the optimal price, place, promotional and product mix; investment appraisal; integration, diversification and location decisions; the impact of the state's regional and other industrial policies on these decisions.
Course description Profit Maximisation and Alternative Models of the Firm
Network Economies
Asymmetric Information
Cost Theory and Measurement
Pricing Policy
Government Policy towards Monopoly, Merger and Restrictive Practices
Advertising Decisions
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Students MUST have passed: Business Studies 1 (BUST08001) OR ( Industrial Management 1 (BUST08002) AND Techniques of Management (MAEE08002)) OR Economic Principles and Applications (ECNM08002) OR Economics 1A (ECNM08005)
Prohibited Combinations Other requirements Note: For Economics with Management Science programme EITHER Principles of Finance OR Business Economics is a mandatory course in Year 2.
Information for Visiting Students
Pre-requisitesVisiting students should usually have at least 1 introductory level Business Studies course at grade B or above (or be predicted to obtain this) for entry to this course. We will only consider University/College level courses.
Course Delivery Information
Academic year 2014/15, Available to all students (SV1) Quota:  None
Course Start Semester 1
Timetable Timetable
Learning and Teaching activities (Further Info) Total Hours: 200 ( Lecture Hours 20, Seminar/Tutorial Hours 8, Summative Assessment Hours 2, Programme Level Learning and Teaching Hours 4, Directed Learning and Independent Learning Hours 166 )
Assessment (Further Info) Written Exam 65 %, Coursework 35 %, Practical Exam 0 %
Additional Information (Assessment) For 2014-15: Essay of not more than 2000 words in Semester 1. 1 essay = 35%, Degree exam = 65%; resit exam = 100%.
Feedback Not entered
Exam Information
Exam Diet Paper Name Hours & Minutes
Main Exam Diet S1 (December)Business Economics2:00
Resit Exam Diet (April/May Sem 1 resits only)Business Economics2:00
Learning Outcomes
Knowledge and Understanding

After completing the course the student will

- appreciate the implications of differences in objectives between members of an organisation and between members of different organisations for management decision making and understand how to encourage managerial actions to be consistent with the aims of certain stakeholders;
- be familiar with the application of a wide range economic principles to decisions made by managers to enable them to maximise profits;
- understand the importance of taking into account rivals' reactions to a manager's decisions when he or she is planning strategies;
- be familiar with and able to evaluate certain government micro-economic policies, such as competition policies and regulatory policies, which will affect the results of, or impose constraints on, managerial decisions;
- be able to critically evaluate the effectiveness of different economic principles when applied to managerial decision making

Cognitive Skills

- be able to demonstrate that (s)he can work in a tutorial group to use economic principles to recommend decision to managers
- be able to demonstrate the application of relevant economic principles to certain decisions faced by mangers;
- be able to demonstrate the ability to evaluate certain opposing economics ideas, approaches, methods and theories;
- be able to demonstrate that (s)he can evaluate certain decisions that managers make in the light of economic principles and models

Key Skills

- be able to demonstrate an ability to use a small number of numerical problem solving techniques to solve certain specific problems which managers face as taught in lectures and practised in tutorials;
- be able to demonstrate an ability to assemble literature to synthesise and evaluate economic thinking or to discover some primary information about organisations so as to apply economic ideas to decisions they make
Reading List
Recommended to buy: H. Davies & P. L. Lam Managerial Economics, 3rd ed. Prentice Hall, 2001.
Additional reading: I Png & D Lehman, Managerial Economics, 3rd ed., Blackwell, 2007, would be useful.
Other suggested reading:
W D Reekie & J N Crook, Managerial Economics, 4th ed., Prentice Hall, 1994.
D Besanko, D Dranove, S Schaefer and M Shanley, Economics of Strategy, John Wiley and Sons, 6th ed., 2013.
T. Jones Business Economics and Managerial Decision Making, John Wiley & Sons, 2004.
J Buckley, C Smith & J Zimmerman, Managerial Economics and Organizational Architecture, McGraw-Hill, 5th International Edition, 2009
P G Keat & P Young Managerial Economics, Pearson, 2009.
M Moschandreas, Business Economics, Business Press, 2000.
G.A. Petrochilos Managerial Economics, Palgrave, 2004
M R Baye Managerial Economics and Business Strategy, McGraw Hill, 6th ed., 2009.
Additional Information
Graduate Attributes and Skills Not entered
Additional Class Delivery Information 1 hour(s) tutorial per week for 8 week(s). Tutorials are held in Weeks 3-10. Please sign up using the Group Selection Tool on Learn.
KeywordsBusiness Economics
Course organiserDr Augusto Voltes-Dorta
Tel: (0131 6)51 5546
Course secretaryMs Patricia Ward-Scaltsas
Tel: (0131 6)50 3823
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