A.

The Manager

B.

Economics

C.

Managerial Economics Defined

A.

Identify Goals and Constraints

B.

Recognize the Nature and Importance of Profits

1.

Economic Versus Accounting Profits

2.

The Role of Profits

3.

The Five Forces Framework and Industry Profitability

1.

Entry

2.

Power of Input Suppliers

3.

Power of Buyers

4.

Industry Rivalry

5.

Substitutes and Complements

C.

Understand Incentives

D.

Understand Markets

1.

Consumer-Producer Rivalry

2.

Consumer-Consumer Rivalry

3.

Producer-Producer Rivalry

4.

Government and the Market

E.

Recognize the Time Value of Money

1.

Present Value Analysis

2.

Present Value of Indefinitely-Lived Assets

F.

Use Marginal Analysis

1.

Discrete Decisions

2.

Continuous Decisions

3.

Incremental Decisions