Week 3

• Managerial decision can affect the quality of the product, the prices of goods and services, and the quantity of the products.
• Microeconomics helps managers to understand how their decisions will affect the market
• Decision-making is a critical part of microeconomics
• Firms need to make decisions about what to produce, how much to produce, and how to price their products
• Type of Managerial Decision (Pricing) 


  • The cost of production

  • The demand for the product

  • The prices of competing products

  • The firm's profit goals
• Type of Managerial Decision (Marketing Decision)


  Consider 4ps

  • Product - what product/service to produce, what are their benefits and how to brand them.
  • Place - distribution. How to deliver their products to retailers to consumers.
  • Price - how to price their products or services
  • Promotion - decisions about what types of advertising to use
• Investment Decisions


  • The expected return on investment

  • The risk of the investment

  • The firm's financial goals
• Human Resource Decisions


  The skills and experience of the workforce

  • The compensation and benefits offered to employees

  • The training and development of employees