TITLE: Managerial Economics

Managerial Economics is a core course in the MBA program. It is designed to give managers a working knowledge of economic theory and statistical methods. This course also serves as a complement to ECO 631, Graduate Microeconomic Theory. The general objective of this course is to help students to learn to handle the allocation and pricing problems of business in a sophisticated manner, using the reasonable tools which production, cost and demand theory make available to them.This course is also designed to increase student's understanding of the economic impact of government regulation and tax policy on business. Because of the applied nature of this course, problem solving and modeling are key skills for success. Prerequisites: CIS 243, 343 and 443.

Content Outline

Grading Procedures

Text & References

Prerequisites

1. CATALOG DESCRIPTION:
   An application of economic theory to business problems.
2. PURPOSE:
   Managerial Economics is a core course in the MBA program. It is designed to give managers a working knowledge of economic theory and statistical methods. This course also serves as a complement to ECO 631, Graduate Microeconomic Theory.
3. COURSE OBJECTIVES:
   The general objective of this course is to help students to learn to handle the allocation and pricing problems of business in a sophisticated manner, using the reasonable tools which production, cost and demand theory make available to them.This course is also designed to increase student's understanding of the economic impact of government regulation and tax policy on business. Because of the applied nature of this course, problem solving and modeling are key skills for success.
4. CONTENT OUTLINE:

   - Introduction - Demand and Forecasting - Production and Cost Theory - Market Structure, Pricing, and Risk - Regulation - Risk Analysis

   Text chapters 1- 2 Text chapters 3 - 6 Text chapters 7 - 9 Text chapters 11 - 14 Text chapter 17 Text chapter 15

   Note: This outline is subject to revision. Additional readings may be assigned during the term.

5. INSTRUCTIONAL ACTIVITIES:
   Lecture and discussion including class discussion of issues and study questions. Additionally, some computer exercises and supplemental readings will be assigned. A term project will be required of each student.
6. FIELD, CLINICAL, AND/OR LABORATORY EXPERIENCES:
   None
7. RESOURCES:
   Text, handouts, reserve readings and the Wall St. Journal. Statistical analysis packages will also be used.
8. GRADING PROCEDURES:

   1. Class Assignments and Quizzes	10%
   2. Midterm Exams (2)	35%
   3. Writing Assignments (3)	10%
   4. Term Project	20%
   5. Final Exam (Comprehensive)	25%

   Final Grades will be assigned based on the following scale:
   A: 90 and above
   B: 80 - 89
   C: 70 - 79
   D: 60 - 69
   F: below 60

   Quizzes:
   There will be a quiz every class period. The quiz will cover recent course material. The primary purpose of the quizzes is to ensure that students are spending adequate out of class time on homework problems. Material for these quizzes may also come from case studies or other homework assignments.

   Midterms:
   There will be two midterm exams. The date of these exams will be determined during the semester. The first exam will cover material on demand and demand analysis. The first exam will be on October 7. The second midterm will cover material on production, costs, and market structure. The second midterm will occur relatively late in the semester.

   Term Project:
   The term project will be a statistical analysis of either demand, production, or cost. Guidance for the term project will be given throughout the semester, however the student is warned that the statistical tools needed are those developed in CIS 243, 343, and 443 which are pre-requisites for entering the MBA program. More information will be given as the semester progresses. The student will be required to turn in periodic progress reports and assignments in order to assist in the statistical analysis. The term project will be due on Thursday, December 2.

   Final Exam:
   The final exam will be comprehensive and given on Thursday, Dec. 16 from 6-9pm.

   Note:
   There are no make-ups given for exams or quizzes. If you miss an exam for any reason, the weight of that exam will be evenly distributed over the remaining exams. If you have prior consent from the instructor to miss a quiz you will be excused from that quiz.

   Writing Assignments:
   The student is to find two articles from the Wall St. Journal and discuss how these articles are related to this class. The written work should be roughly 4-6 pages and include:

   1. A summary of the article
   2. A section describing how the article is related to topics discussed in ECO 625. As part of this, the student should imagine that they are explaining economic concepts to an educated person unfamiliar with economics.
   3. A section showing how this information could be used in a managerial setting. The student is free to choose the setting.

These assignments will correspond roughly with the demand section and the production/ cost/market structure setting. Due dates will be announced in class and will correspond with the timing of the course.

The third writing assignment will be a proposal for your term project. In this you will discuss the project you are going to write, the variables you feel you need to complete the analysis and the data sources you will use.

9. ATTENDANCE POLICY:
   There is no formal attendance policy. Success in this course depends upon regular attendance.
10. ACADEMIC HONESTY POLICY:
    The College of Business and Public Affairs has a posted policy on academic dishonesty, which will be followed. Additionally, any student caught cheating on an examination or turning in written work which is not their own will receive an "E" in this course.
11. TEXT AND REFERENCES:
    Edwin Mansfield, Managerial Economics: Theory, Applications and Cases, 4th edition. There is a study guide / casebook which should also be purchased.
12. PREREQUISITES:
    Admission to the MBA or MS Program or the consent of instructor. The student must have completed Math 220 and Economics 230 and 231 at this or another university. Additionally, this course makes use of material covered in CIS 243, 343 and 443. These courses are required for admission into the MBA program and should be completed before taking ECO 625.