This course develops an understanding of how a market-based economic system reconciles the separate needs of consumers and producers, and provides an economic framework for managerial decisions. Additionally, the course provides tools of analysis and concepts that are used in the MBA program's functional fields. Centering on the basic concept of the business firm, it integrates the analysis of market demand with that of production and costs in the context of a variety of domestic and global market structures. Topics include pricing, output, and quality decisions; the impact of productivity improvements on costs; quality-cost tradeoffs; transaction costs as a determinant of the boundaries of the firm; and market imperfection and the role of regulation. Prerequisites: None.