In this class we will study economic tools that managers can use to become more effective decision makers. Basic tools include present value/future value analysis, marginal cost/benefit analysis, and basic supply and demand modeling. We also review interpretation and use of regression analyses, consumer behavior, efficient use of inputs in production, cost minimization, and profit maximizing behavior in markets characterized by perfect competition, monopolistic competition, and monopoly and monopsony. More advanced tools include consideration of profit maximizing strategies in markets characterized by oligopoly, where we expect both price and non-price competition, the role of information in organization of the firm and the markets in which it operates, strategic bidding in auctions, at pricing strategies aimed at increasing profits and market share, etc. We also consider the roles of risk and risk aversion when decisions must be made under uncertainty.
Textbook: Managerial Economics and Business Strategy, 7th Edition, by Michael Baye, McGraw-Hill Irwin, 2010
Internet: Blackboard
Blackboard will be my primary source of communication and exchange of information outside of class. I will post a number of handouts on this site, including solutions to all end of chapter problems in the text, copies of problems we work through in class, and old exams from previous semesters. You should check in to verify your grades on examinations. If there is an error, contact my administrative assistant Bree Miller through e-mail as soon as possible. She will work with you to correct the error.
Grading Policy:
Letter grades will be assigned based upon your performance on two evening midterm exams, and a comprehensive final exam:
Percent of Item Course Grade
Exam I 30 Exam II 30 Final Exam 40 Total 100
All exams will be multiple-choice in format. If necessary I will base grades on a “curve” at the end of the semester.
“Makeup” Policy
If you must an exam because of participation in a university sponsored trip or activity (documented by a club or team sponsor), an interview trip (documented by the firm), or a time conflict with an evening class or exam (documented by your professor), you make take a makeup exam before the regularly scheduled exam takes place. Otherwise, if you miss an exam due to extreme illness, documented by a physician, or other unforeseen emergency, contact me within 48 hours after the exam with documentation supporting your reason for missing the exam. You will take an essay makeup exam.
DO NOT MAKE END OF SEMESTER TRAVEL PLANS BEFORE THE FINAL EXAM DATE IS ANNOUNCED BY THE UNIVERSITY! No makeups will be offered during this week to accommodate travel plans.
Econ 419 - Tentative Course Schedule – Spring 2013
|Class |Date |Chapter(s) |Topic(s) |
|1 |T – 1/8 |1 |Measuring Cost – Time Value of Money |
|2 |Th – 1/10 |1 |Time Value of Money – Marginal Analysis |
|3 |T – 1/15 |2 |Supply and Demand Model |
|4 |Th – 1/17 |2 |Consumer/Producer Surplus; Deadweight Loss with Market Intervention or Absence of Competition |
|5 |T – 1/22 |3 |Elasticities of Demand; Average vs. Marginal Revenue |
|6 |Th – 1/24 |3 |Regression Analysis;
