A.

Microeconomics:

Economists attack and/or defend large corporations. Adam Smith believed a monopoly (oligopoly) firm charges higher prices for
products than would obtain if the products were produced by a large number of smaller competitive firms. Textbooks on
microeconomics teach that there is a range of competition among firms, from perfectly competitive to monopolistically
competitive to differentiated oligopoly to pure oligopoly to monopoly. Economists differ sharply as to the effects of monopoly
power. Differences in opinion are even sharper about the role of government (public firms) enterprises in modern economies.
Despite the worldwide collapse of communism and concomitant privatization, government enterprises continue to play a role in
many economies.

1. Oligopoly / Government Firm / Mixed Oligopoly Model. My programs let you model an industry that is:
1. a monopoly (private or public),
2. an oligopoly,
3. an oligopoly with one firm a government (public) firm,
4. and, specify the managerial incentives for the government (public) enterprise.

(These managerial incentives can also be used in "private firms" with profit centers.)

2. Differentiated Oligopoly. Each seller in an imperfectly competitive market faces a negatively sloped demand curve for its
product, permitting it some control of the price of its product. In a differentiated oligopoly, a few firms produce products different
enough for each firm to have its own downward sloping demand curve.

3. Monopolistic Competition. The many firms in a monopolistically competitive industry produce differentiated yet similar
products. New firms can easily enter the industry. A monopolistically competitive firm's own demand curve is highly elastic,
permitting it to vary its price within a narrow range of prices. The other firms' products are either very close substitutes or, a
large number of other firms' products are substitutes (not necessarily very close substitutes).

4. Production Functions. These web pages explain the most important production functions used in economics: the Cobb-
Douglas production function, the CES production function, the Translog production function, and the Generalized Leontief
(Diewert) production function. You can also estimate the parameters of the Translog and the Generalized Leontief (Diewert)
production functions online.

B. Macroeconomics:

1. Macroeconomics home page. Macroeconomics attempts to understand the behaviour of the whole economy by analyzing
the determination and interaction of such broad economic aggregates as national income and product, consumers' expenditures
and savings, producers' output of products and producers' investment in capital, government revenues (taxes) and
expenditures, exports and imports, the level and composition (by age, sex, and region) of employment, and the quantity of
money in circulation. Much of modern macroeconomics theory and its application in government policy is still based on the work
of John Maynard Keynes.

2. Basic IS-LM model. In the basic IS-LM model, the behaviour of the economic agents - consumers, producers (firms), and
the government - is reconciled by the product and money markets. Focusing on the "demand side" of the economy, the IS-LM
model is an important starting point in building a more complete macroeconomics model of the economy.

3. Basic IS-LM model with exports and imports. This web page extends the basic IS-LM model to include exports and imports.
By adding the external sector, I model the open economy version of the Canadian economy.

4. Comparative Statics of the IS-LM model. This web page permits you to adjust the IS-LM model's parameters to see how
the equilibrium macroeconomics variables and aggregates of the model change.

5. Aggregate Demand (AD) - Aggregate Supply (AS) model.

By including the labour market and the economy's aggregate production function in the model, I derive the aggregate supply of
products (commodities produced by firms) as a function of the price level of products. I also derive the aggregate demand for
products as a function of the price level by including the effect of the price level on the money market. The equilibrium between
aggregate demand and aggregate supply in the model determines the price level, the level of employment, the money wage
rate, the amount of output, and the values of the other macroeconomics aggregates determined in the IS-LM model of the
economy.

6. Comparative Statics of the AD-AS Model. This web page permits you to adjust the AD-AS (Aggregate Demand -
Aggregate Supply) model's parameters to see how the equilibrium macroeconomics variables and aggregates of
the model change.
Managerial economics (sometimes referred to as business economics), is a branch of economics that applies
microeconomic analysis to decision methods of businesses or other management units. As such, it bridges
economic theory and economics in practice. It draws heavily from quantitative techniques such as regression
analysis and correlation, Lagrangian calculus (linear). If there is a unifying theme that runs through most of
managerial economics it is the attempt to optimize business decisions given the firm's objectives and given
constraints imposed by scarcity, for example through the use of operations research and programming.

Almost any business decision can be analyzed with managerial economics techniques, but it is most commonly
applied to:

• Risk analysis - various models are used to quantify risk and asymmetric information and to employ
them in decision rules to manage risk.
• Production analysis - microeconomic techniques are used to analyze production efficiency, optimum
factor allocation, costs, economies of scale and to estimate the firm's cost function.
• Pricing analysis - microeconomic techniques are used to analyze various pricing decisions including
transfer pricing, joint product pricing, price discrimination, price elasticity estimations, and choosing the
optimum pricing method.
• Capital budgeting - Investment theory is used to examine a firm's capital purchasing decisions.

At universities, the subject is taught primarily to advanced undergraduates and graduate business schools. It is
approached as an integration subject. That is, it integrates many concepts from a wide variety of prerequisite
courses. In many countries it is possible to read for a degree in Business Economics which often covers
managerial economics, financial economics, game theory, business forecasting and industrial economics.