Managerial economics will study and focus on how can the behavior and performance of firms and markets be explained and predicted with observable data. This course uses microeconomics theories to study firms behavior, strategy, and markets structure – theoretical and empirical works are both important The main goal of this course is to understand how firms strategically interact in well-defined markets. It is also concerned with how government intervention could influence firm behaviors and market performance, such as in the cases of antitrust policy, regulatory policies, and patent policies.