Business Economics

Course Description

The economics of the firm use microeconomic tools and methods in the field of firms’ decision making. The objective of this course is to analyze and optimize the firms’ decision making in order to increase the efficiency of the firms. The subjects that will be analyzed are: Theory of the firm. Quantification and evaluation of the quality of the firms’ administration in international level and their comparative study. Estimation of the demand functions, techniques of qualitative and quantitative analysis, and the firms’ forecasts. Production functions with one or more inputs. How to estimate production functions and what we learn from these estimations. Theory and estimation of cost functions. Pricing under conditions of perfect competition, monopoly, monopolistic competition and oligopoly as characteristic forms of market structure. Pricing technics of independent and related products. Forms of firm’s organization and administration. The problem of principal and agent within the firm. Evaluation and incetnives for workers’ productivity.