The course provides comprehensive discussions and examinations of the economic and business aspects of retail SMEs. It discusses the factors leading to the success and failure of SMEs, introduces issues such as market behavior, business finance, and internal management, associated with SMEs in the global economy, and examines the SMEs in Macao, Hong Kong and the Pearl River Delta.

CILO-1: Use the techniques for optimization. To making good managerial decisions by using formal models. CILO-2: Appraise the importance of market demand influenced by many factors. To analyze the determinants of individual consumer demand and market demand and how managers can exert some control over demand by controlling some of its determinants. CILO-3: Use the knowledge of the relationship between costs and output to make decisions and help managers create competitive advantages using cost analysis. To examine the difference between short-run and long-run costs. Be able to do break-even analysis. CILO-4: Respond to different competitive environments in terms of pricing and output decisions. To examine pricing behavior in perfectly competitive markets and to investigate how managers set price and output when they have market power. CILO-5: Demonstrate the ability to use price discrimination to increase profits. To examine the three types of price discrimination techniques, peak and load pricing, and two- part tariff. To analyze the mechanics of bundling and how managers can use bundling and tying strategies to increase profit. CILO-6: Familiar with four main types of oligopoly: Cournot Oligopoly, Stackelberg Oligopoly, Bertrand Oligopoly, the Kinked Demand Curve Oligopoly Model. To examine the concept of equilibrium from a game-theoretic standpoint.