Technical University of Ostrava

VSB
Faculty of Economics
Liverpool John Moores University
Faculty of Arts, Professional and Social studies
Liverpool Business School

MANAGERIAL ECONOMICS
Economic Analysis for Decision Regarding
Outsourcing of Printing Services for
University Hospital Ostrava

Author: Ing. Miroslav Krupa

Module Leader: Ing. Tom
a
s Wroblowsk
y, Ph.D.
Consultant: Ing. Ale
s Lokaj, Ph.D.
Date of submission: December 19, 2015

Contents
1 Introduction

2 Economic Theory Related to the Topic

2.1

Fixed and Variable Costs . . . . . . . . . . . . . . . . . . . . . . . .

2.2

Marginal Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.3

Average Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.4

Opportunity Cost . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 Economic Evaluation of Outsourcing Decision

11

3.1

Description of Printing Services . . . . . . . . . . . . . . . . . . . . 12

3.2

Analysis of Internally Provided Printing Services . . . . . . . . . . . 13

3.3

3.2.1

Breakdown of Expenses . . . . . . . . . . . . . . . . . . . . 13

3.2.2

Opportunity Cost . . . . . . . . . . . . . . . . . . . . . . . . 16

3.2.3

Structure of Cost . . . . . . . . . . . . . . . . . . . . . . . . 17

3.2.4

Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Analysis of Outsourcing of Printing Services . . . . . . . . . . . . . 17

3.3.1

Breakdown of Expenses . . . . . . . . . . . . . . . . . . . . 18

3.3.2

Opportunity Cost . . . . . . . . . . . . . . . . . . . . . . . . 18

3.3.3

Structure of Cost . . . . . . . . . . . . . . . . . . . . . . . . 18

3.3.4

Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4 Conclusion

19

5 Reflection on Learning Experience

21

List of Tables
1

Example for Fixed, Variable and Total Costs . . . . . . . . . . . . .

Calculation of Marginal Cost . . . . . . . . . . . . . . . . . . . . . .

Calculation of Average Cost . . . . . . . . . . . . . . . . . . . . . . 10

Expenses for Printing Services for Year 2014 . . . . . . . . . . . . . 15

Calculation of Interest (In-house Regime) . . . . . . . . . . . . . . . 16

Calculation of Interest (Outsourcing) . . . . . . . . . . . . . . . . . 18

List of Figures
1

The Relationship between Total Cost and Marginal Cost . . . . . .

Printing Devices Technology Breakdown . . . . . . . . . . . . . . . 13

Printing Devices Type Breakdown . . . . . . . . . . . . . . . . . . . 14

Introduction

IT department of University Hospital Ostrava went through significant changes

during several recent years. One of the most important was complete process
change in the area of end user support. We made review of all activities performed
by department. Based on that, the service catalog has been created, to clearly
communicate what IT is providing and under which conditions.
The further development of services is being done tightly together with service
catalogue management nowadays. With increasing demand for both quality of
services and expansion of service portfolio, there is necessity to regularly monitor
the performance of individual services and to evaluate its effectiveness.
The IT department has of course limited resources. The number of staff cannot
be enlarged and budget of department is fixed as well. However, not all services
demand same expertise level. There are services where high technical skills and
detailed knowledge of environment are needed. There are also the services which
require very basic level of skills and almost no knowledge of environment is needed
to successfully fulfill request of end user. The services with high requirements are
viewed as those with high added value, and the ones with low requirements are
viewed as basic ones (which of course doesnt mean that such services could be
provided with lower than expected quality or even left out). Because the number
of people involved in request fulfillment for one segment of services (like hardware
support, information systems administration and maintenance, infrastructure support, etc.) is kind of fixed, and maintaining substitutability within the group is
necessary, the staff is skilled high and posses knowledge to be able to fulfill all types
of service requests. Therefore, the time the skilled person spent with providing
service which requirements are low can be seen as not as effective.
The printing services are typical example of basic services. Printing services
will be described in the detail in further sections, but with some simplification
they can be defined as providing printers and their consumables within university
hospital directly to the workplace of end users. Supply of paper is excluded. The
delivery (and configuration) of printer or just delivery of printing cartridge and
its replacement in the printer directly to the workplace of end user doesnt need
3

any special skills. The activity has no special value added from service consumer
point of view. Contrary to that, the portfolio of printers accessible on market is
changing during times, and IT must be able to provide replacement of old and
damaged printers with new types. The selection and testing of new types takes
time as well, and IT needs to deal with information asymmetry while choosing
new types of printers to replace old ones.
The combination of fact above leads us to the idea of outsourcing (transferring
of work to outside suppliers rather than completing it internally) the printing
services to the supplier who is focusing on printers segment. The notion would be
to free our staff from providing the service in-house, together with keeping the cost
economically not worse than nowadays. This should be feasible, because supplier
can hire less skilled staff for lower wages and he has great expertise in printer
segment as it is his core business. Therefore, the selection of new types of printers,
for replacement of obsolete ones, should be more effective.
The decision has several aspects or points of view. The economical aspect is
very important, maybe even the most important.
The goal of this essay is to choose suitable option for providing printing services
in future (either to continue in-house or outsource to external supplier).
The method used to reach the goal will be comparison of costs. Comparison will
be done in accordance with the economic way of thinking (utilizing opportunity
cost concept), which enables to see deeper and realize options and real economic
costs rather than just pure comparison of numbers in accounting.

Economic Theory Related to the Topic

The comparison of options needs to be made on something solid. Conditions

and service level is fixed by service level agreement regardless of way, how the
service will be provided. According to ITIL methodology, further improvement of
quality is not needed and should not be provided (Cabinet Office, 2011) if it causes
additional expenses. Therefore, natural way when choosing between options, which
are qualitatively equal, would be to compare costs.

2.1

Fixed and Variable Costs

The cost of producing goods or services depends on how much labor and physical
capital the firm uses. The costs involved in producing physical goods will probably
differ from the costs involved in producing services. However, the cost structure
of any production can be broken down into some common underlying patterns.
When we look at total costs of firms production in the short run, we can easily
distinguish two categories: fixed costs that cannot be changed in the short run
regardless of how much firm produces and variable costs that vary with amount
of production.
Lets use definitions from Samuelson and Nordhaus (2010):
Fixed costs (F C) are expenses that must be paid even if the firm produces zero output. Sometimes called overhead or sunk costs, they
consist of items such as rent for factory or office space, interest payments on debts, salaries of tenured faculty, and so forth. They are fixed
because they do not change if output changes.
Variable costs (V C) do vary as output changes. Examples include materials required to produce output (such as steel to produce automobiles), production workers to staff the assembly lines, power to operate
factories, and so on. In a supermarket, checkout clerks are a variable
cost, since managers can adjust the clerks hours worked to match the
number of shoppers coming through the store. By definition, V C begins at zero when q is zero. V C is the part of T C that grows with
output; indeed, the jump in T C between any two outputs is the same
as the jump in V C.
Total cost (T C) is sum of total fixed costs (T F C) and total variable
costs (T V C). It represents the lowest total expense needed to produce
each level of output q. T C rises as q rises.
The formula for calculation of total cost is:
TC = TFC + TV C
5

To illustrate this concept on an example see Table 1. The table shows the
total cost (T C) for each different level of output q. We can see that fixed costs
(F C) remain same but variable costs (V C) and total costs (T C) change as output
changes.
Quantity (q)

Fixed cost (F C)

Variable cost (V C)

Total cost(T C)

55

55

55

30

85

55

55

110

55

75

130

55

105

160

55

155

210

55

225

280

Table 1: Example for Fixed, Variable and Total Costs

2.2

Marginal Cost

The marginal cost (M C) of production is the additional cost incurred in producing

1 extra unit of output (Samuelson and Nordhaus, 2010).
Marginal cost is one of the most important concepts in all of economics.
Marginal cost denotes the extra or additional cost of producing 1 extra unit of
output. Say a firm is producing 100 pieces of some product for a total cost of
Kc 10,000. If the total cost of producing 101 pieces is Kc 10,060, then the marginal
cost of production is Kc 60 for the 101st piece.
Sometimes, the marginal cost of producing an extra unit of output can be quite
low. For an airline flying planes with empty seats, the added cost of another passenger is literally peanuts; no additional capital (planes) or labor (pilots and flight
attendants) is necessary. In other cases, the marginal cost of another unit of output can be quite high. Consider an electric utility. Under normal circumstances,
it can generate enough power using only its lowest-cost, most efficient plants. But
on a hot summer day, when everyones air conditioners are running and demand for
6

electricity is high, the utility may be forced to turn on its old, high-cost, inefficient
generators. This added electric power comes at a high marginal cost to the utility.
Table 2 uses the data from Table 1 to illustrate how to calculate marginal costs.
The M C numbers in third column of Table 2 come from subtracting the T C in
second column from the T C of the subsequent quantity. Thus the M C of the first
unit is 85 55 = 30; the marginal cost of the second unit is 110 85 = 25; and so
on.
Output (q)

Total cost(T C)

Marginal cost (M C)

55
30

85
25

110
20

130
30

160
50

210
Table 2: Calculation of Marginal Cost

Instead of getting M C from the T C column, we could get the M C figures by

subtracting each V C number in third column of Table 1 from the V C in the row
below it. Variable cost always grows exactly like total cost, the only difference
being that VC must (by definition) start out from 0 rather than from the constant
F C level. (Check that 30 0 = 85 55, and 55 30 = 110 85, and so on.)
The relation between total cost and marginal cost can be seen on figure 1.
The figure utilizes data from our example (tables 1 and 2). It is clearly visible
that marginal cost is not the same - it can go up and down as production output
increases. It will never be negative as we assume that the firm always produces
7

output at the lowest possible cost.

Figure 1: The Relationship between Total Cost and Marginal Cost

(Samuelson and Nordhaus, 2010)

2.3

Average Cost

Average cost (AC) is the total cost divided by the total number of units produced
(Samuelson and Nordhaus, 2010).
Average cost is a concept widely used in business; by comparing average cost
with price or average revenue, businesses can determine whether or not they are
making a profit.
Just as we separated total cost into fixed and variable costs, we can also break
average cost into fixed and variable components.
Average fixed cost (AF C) equals fixed cost divided by output. Since total
fixed cost is a constant, dividing it by an increasing output gives a steadily falling
average fixed cost curve (see seventh column of Table 3). In other words, as a firm
sells more output, it can spread its overhead cost over more and more units. For
example, a software firm may have a large staff of programmers to develop a new
8

game. The number of copies sold does not directly affect how many programmers
are necessary, thus making them a fixed cost. So if the program is a best-seller,
the AF C of the programmers is low; if the program is a failure, the AF C is high.
Average variable cost (AV C) equals variable cost divided by output. It can
raise or fall. As you can see in Table 3, for this example AV C first falls and then
rises.
The formulas for calculation of AC, AF C and AV C are:
AC =

TC
q

AF C =

FC
q

AV C =

VC
q

It is important to understand the link between average cost and marginal cost:
When marginal cost is below average cost, it is pulling average cost down.
When marginal cost is above average cost, it is pulling up average cost.
When marginal cost just equals average cost, average cost is constant.

2.4

Opportunity Cost

From economic point of view, the cost of the item or the service is not what you
paid for it, but it is what you must give up to get it (Krugman, Wells and Graddy,
2013).
Such a cost is named opportunity cost. Because our resources are limited, we
must decide how to allocate our money or time. If we choose to do something or buy
something, we will give something else up there will be a missed opportunity. The
next-best option that is missed represents the opportunity cost of such decision.
According to Samuelson and Nordhaus (2010):
Decisions have opportunity costs because choosing one thing in a world
of scarcity means giving up something else. The opportunity cost is
the value of the most valuable good or service forgone.

FC

VC

TC

55

55

MC

AC

AF C

AV C

N/A

85

55

30

55

27.5

27.5

55

18.33

25

55

13.75

26.25

55

11

31

30
1

55

30

85
25

55

55

110
20

55

75

130
30

55

105

160
50

55

155

210
70

55

225

280

55

9.16

37.5

Table 3: Calculation of Average Cost

10

Economic costs include, in addition to explicit money outlays, those

opportunity costs incurred because resources can be used in alternative
ways.
We can express this definition as following formula:
Economic cost = Explicit cost + Opportunity cost
But there is some difficulty trying to fit this concept into simple formula. Notice
that cost is not defined in terms of money. Money is a useful measure because
it reduces all costs to one common denominator. Money is only the means of
measuring cost, however; it is not cost itself. Money cost is a monetary measure
of the benefits forgone when a choice is made. The real cost is the actual benefits
given up from the most preferred alternative not taken when a choice is made
(Heyne, Boettke and Prychitko, 2006).
There can be difficulty to convert some benefits to money cost. For example,
I can either write a poem or best other thing for me is watching the sunset. It is
next to impossible to convert benefits of these options to money. And probably it
doesnt really make much sense either. So although money is not always involved
in choices, the opportunity to do other things is. A cost is incurred in every choice.

Economic Evaluation of Outsourcing Decision

In this chapter, I will describe the printing services into the detail first. Then I
will focus on the analysis of both options. The analysis will be made for reference
period of 4 years, because this is the length commonly used in tenders and planning
in general in university hospital.
As covered in chapter 2, the main idea is to compare the cost of both options.
When economists use the term cost, they mean real, or opportunity, cost (Heyne,
Boettke and Prychitko, 2006). Thus I will be using concepts described in chapter
2 to analyze and compare available options from economical point of view.

11

3.1

Description of Printing Services

Purpose of printing services is to support ability of end users of University Hospital

Ostrava to use printers and copiers to produce paper outputs they need.
Printing services are split into following specific services1 :
Request for new printing device The service is provided to fulfill the requests
for delivery of new printer or copier where there was nothing before (it is
not intended for replacement of old existing device with the new one). The
service is specific, because the user, who requests new device, needs to specify number of parameters so the right device, which fits his needs, can be
delivered. For example, it is necessary to estimate workload of the device,
format, ability to print to special outputs like envelopes or labels, if color
print should be available and so on.
Request for service of printing device Into this service basically belongs all
cases when something is wrong with printing device and it is not producing
expected output. The solution could mean reconfiguration, physical repair
or even replacement of device. In such case, there is not necessary to specify
parameters of printing device, because it is up to expertise of staff fulfilling
request to choose proper replacement for the old or damaged one.
Request for consumables for printing device The delivery of any consumable like toner, cartridge, ribbon or replaceable printhead is covered in this
service. The service work includes delivery to the workplace and physical replacement of consumable within the device. The supply of paper (or similar
material like labels, envelopes, etc.) is not part of the service - it is supplied
from central warehouse of the university hospital.
With more than 3,000 of employees in university hospital there is quite amount
of printing devices used. The printing devices are used mainly for medical records
1

In the reality, we have services more branched according to the priority of workplace and

other aspects, but for the purpose of the evaluation the given split is detailed enough.

12

and necessary administrative in supporting units. Currently, there are 1,610 printing devices deployed at various workplaces. The charts on figures 2 and 3 show
their breakdowns according to the printing technology and type of device.
1,200
1,000
800
600
400
200
0
Laser

Dot-matrix

Ink-jet

Thermal

Other

Figure 2: Printing Devices Technology Breakdown

3.2

Analysis of Internally Provided Printing Services

When printing services are provided internally, the explicit costs consist of expenses
for:
consumables (toners, ink cartridges, ribbons, etc.),
newly bought devices,
service for existing devices,
work of internal staff.
3.2.1

Breakdown of Expenses

The data for the breakdown are taken from various sources, which will be described
below. They are gathered for calendar year 2014.
13

1,400
1,200
1,000
800
600
400
200
0
Printer

Multifunction Printer or Copier

Fax

Figure 3: Printing Devices Type Breakdown

The data for expenses on consumables, newly bought devices and service for existing devices are taken from invoices registered in accounting information system
(Microsoft Dynamics Nav). For every invoice, there exists purchase order, which is
issued from another information system (FAMA+) and such order contains detail
rows of items, which are classified into specific categories. Consequently, we can
filter all orders with items classified as categories we need, and based on purchase
order find appropriate invoice.
The data about work of staff are taken from another information system Alvao Service Desk. This system works like classic service desk and it is compliant
with ITIL2 . The service catalogue is managed there. Every request of end users is
registered and classified as related to the appropriate service. If somebody from IT
staff is working on the request, he registers time spent into the system. Therefore,
it is easy to filter out all service requests classified as requests of printing services,
set date interval and count total time. For year 2014, there is total 1,726 hours
reported which divided by 252 work days of year 2014 means 6.85 hours per work
day. Now, we can take the average wage of staff fulfilling the printing services
2

Information Technology Infrastructure Library set of practices for IT Service Management

14

(Kc 23,250) and estimate the cost of work for one year:
Kc 23,250 1.34 6.85 / 8 12 = Kc 320,118
The multiplication by 1.34 is added to include the employer taxes for employee.
Table 4 contains results of the analysis of the expenses.
Consumables
Ink cartriges

Kc 359,528

Toner cartriges for laser printers and copiers

Ribbons

Kc 4,425,042
Kc 1,186

Newly bought devices

Printers

Kc 758,451

Multifunction Printers or Copiers

Kc 348,240

Service for existing devices

Laser, Ink-jet or Dot-matrix printers A4

Kc 113,436

Multifunction printers or Copiers A3

Kc 125,344

Other printing devices

Kc 36,583

Work of internal staff

Cost of work

Kc 320,118

Total sum

Kc 6,487,928

Table 4: Expenses for Printing Services for Year 2014

The explicit expenses for four years would be:

Kc 6,487,928 4 = Kc 25,951,712

15

3.2.2

Opportunity Cost

If we relate this to the option to provide printing services in-house, the economic
cost will include not only the expenses for printers and their consumables and
wages of the staff, but as well benefits missed from options where staff can do
different activity and profit which money equal to the expenses for printers and
consumables could bring.
Lets assume, that best alternative option what to do with money which are
spent on service, consumables and purchase is to put them in bank for interest rate
2%. After four years, they can earn interest Kc 1,323,798 (calculation in Table 5).
1st year

2nd year

3rd year

4th year

deposit

Kc 6,487,928

Kc 6,487,928

Kc 6,487,928

Kc 6,487,928

interest

Kc 129,759

Kc 391,871

Kc 788,984

Kc 1,323,798

balance

Kc 6,617,687

Kc 13,367,727

Kc 20,252,768

Kc 27,275,510

Table 5: Calculation of Interest (In-house Regime)

Concerning the expenses for work of staff, the best alternative would be to
dedicate this time to another service with greater added value. As number of
staff of IT is limited and staff is currently fully utilized, introducing new services
could be made only by buying them externally. Usage of internal resources instead
means, that IT can save this cost. To be very cautious, lets say that expenses for
such services will be same as cost of work of internal employees. This implies
that the net benefit of this alternative would be 0, because we will save the same
amount, as we spent on wages of staff.
However, as mentioned in 2.4, it can be difficult to convert some benefits to
money cost. The real benefit here is, that the staff will use the time to provide end
users with service with greater added value than printing services. It can be, for
example, consultations of usage of specific software, automation of some manual
tasks by providing IT support, preparation of requested ad hoc data analysis,
etc. Such services are seen as expert activities demanding specific IT skills and
knowledge and thus are valued by users much more than just walking with printer
16

cartridge.
IT could as well consider alternative to dismiss one employee (as 6.85 work per
day is almost one full-time job), but strategy of IT department is to provide end
users with best possible services. As demand for IT services is increasing together
with increasing number of systems and technologies in university hospital, every
person is vital to reach this goal.
3.2.3

Structure of Cost

All costs (consumables, service, new devices and work) are changing according to
production amount of services and thus they are variable costs.
3.2.4

Risks

The main risk connected with providing printing services in in-house regime comes
from information asymmetry of IT when buying new devices, consumables and
service works. Currently, IT is buying these from several vendors and continuous
changes on the market takes us some time, as we need to find replacement of
obsolete types of printers and consumables. With amount of consumables used
in university hospital, refilling of cartridges can save lot of money. However, IT
doesnt have resources to prepare refills by itself. On the other hand, the purchasing of refills is very sensitive and we have some very bad experiences with level
of quality. We believe, that specialized unified supplier can optimize costs a lot
there, while being able to guarantee the quality at the same time.

3.3

Analysis of Outsourcing of Printing Services

The aim of outsourcing would be to contract out the printing services3 to external
supplier for a fixed monthly fee4 .
3
4

Service will be provided under same parameters of service level agreement.

Contract contains the limitation for change of total number of printing devices within margin

of 2% and the condition of commitment for at least four years.

17

3.3.1

Breakdown of Expenses

Based on historical data about recent development of amount of printing devices

in university hospital, showing that number of devices is quite stable and total
number of printers is changing only by few pieces, I will assume that number of
printers will stay stable in future as well.
University hospital already made a tender for outsourcing contract and the
winning offer includes the fixed monthly fee of Kc 299,999.
The explicit expenses for four years would be:
Kc 299,999 4 12 = Kc 14,399,952
3.3.2

Opportunity Cost

Lets assume, that best alternative option what to do with money which are spent
on service fee is to put them in bank for interest rate 2%. After four years, they
can earn interest Kc 734,542 (calculation in Table 6).
1st year

2nd year

3rd year

4th year

deposit

Kc 3,599,988

Kc 3,599,988

Kc 3,599,988

Kc 3,599,988

interest

Kc 72,000

Kc 217,439

Kc 437,787

Kc 734,542

balance

Kc 3,671,988

Kc 7,417,415

Kc 11,237,751

Kc 15,134,494

Table 6: Calculation of Interest (Outsourcing)

3.3.3

Structure of Cost

The only cost is the monthly fee and it is fixed cost, as it doesnt change with
amount of satisfied requests.
3.3.4

Risks

The risks connected with outsourcing are connected with fact, that services are
under official contract with precise definition. However when some unusual situation happens, contract is not covering it. Internal stuff can be flexible and make
18

an exception. If such situations repeat, it is easy to tweak the service a bit to

suit the changed needs of end users. External supplier is not likely to do what is
not covered by contract. The contract changes take some time (especially in big
organization as university hospital) and if subject of contract changes a lot, it can
be difficult the react with suitable speed.
The other risk, which grows during the time, is dependance on the supplier.
After some time, the knowledge and skills of internal stuff, which were needed
to perform service, decreases as they are not needed anymore and there is no
initiative to maintain them. However, that is exactly moment when firm begins
to be dependant on its outsourcing supplier and can find itself as prisoner. If
supplier comes with price increase or let the service quality to drop, the firm has
quite limited options to not agree in short term. It is not simple to find replacement
fast or to take the services over again.

Conclusion

Economical cost of providing printing services internally (ECI ) is sum of:

explicit costs (Kc 25,951,712),
opportunity cost interest from money for devices, service and consumables
(Kc 1,323,798),
opportunity cost benefit from end user satisfaction from services with
higher added value.
ECI = Kc 27,275,510 + user satisfaction
Economical cost of outsourcing (ECO ) is sum of:
explicit costs (Kc 14,399,952),
opportunity cost interest from money for monthly service fee (Kc 734,542).
ECO = Kc 15,134,494
19

It is quite easy to evaluate from numbers above, that EC0 < ECI even when not
knowing the value of user satisfaction benefit and thus outsourcing is economically
favourable option. The gap between costs is quite surprising5 , but can be explained
by combination of following points6 :
the purchasing of university hospital was not optimal,
the ability to optimize cost of consumables by providing refills of cartridges
instead of supplying new ones is key aspect and main know-how of the specialized vendor,
the official tender knocked the price down even more compared to initial
offers.
Based on this economical evaluation, I will recommend to conclude outsourcing
contract. Regardless of clear economical numbers, it is still necessary to consider
the risks connected with this option and try to treat them carefully. The final
contract should contain at least:
the obligation to perform the contract from supplier side for defined time
with clear description of conditions when price can change,
detailed description how and under what conditions the service can be terminated and how transition back or to another supplier will be made,
the simplified procedure, how the unusual requests not covered by service
description as subject of contract can be handled.

The outsourcing would be economically balanced to in-house regime with monthly fee

Kc 540,661 (when I omit appraisal of user satisfaction part of opportunity cost).

6
The explanation comes from discussion with winner of the tender.

20

Reflection on Learning Experience

The lectures of managerial economic in MBA programme were really effective in

showing me how to think in economic way. Although I always tended to think
in such way naturally, the lectures Ive come through filled the missing pieces
in and made those concepts (untitled for me so far) clear and backed them up
by solid economical theory. This justification and brief but complete overview of
micro and macro economical topics gave me essential basics so needed for further
management practice.
I highly appreciate the willingness of all teachers who participated on lectures.
As a student I had possibility to react directly whenever I wanted. It was very
handy to be able to discuss economic topics in connection to my work and everyday
life experience.
As I graduated in computer science, I enjoyed a lot the lecture about game
theory. I felt this topic is somehow related and connected to many fields of specialization - economics, mathematics, computer science, etc. and it has many
possible practical applications.
Last but not least I would like to thank to consultant of my essay Mr Lokaj
for valuable advices and comments.

References
Cabinet Office (2011) ITIL Service Design. 2011 edition. The Stationery Office.
Heyne, P.T., P.J. Boettke and D.L. Prychitko (2006) The Economic Way of Thinking. 11th edition. Prentice Hall.
Krugman, P., R. Wells and K. Graddy (2013) Essentials of Economics. Worth
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Mankiw, N.G. (2014) Principles of Economics. 7th edition. Cengage Learning.
Samuelson, P.A. and W.D. Nordhaus (2010) Economics. 19th edition. McGrawHill/Irwin.

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