University of Hartford

Barney School of Business

 

Managerial Economics

EC 312

 

 

 

                                                                                                                           CRN#18731

Class Days

Class Hours

Monday, Wednesday

5:00pm - 6:10pm

 

Spring 2006

 

 

 

 

 

 

Class Location

A323

 

 

 

Instructor

Dr. Jeffrey P. Cohen

 

Office

Location:

A412C

Office Phone:

860-768-4834

 

 

E-mail*:

 

Jcohen@hartford.edu

Fax Number:

860-768-4911

 

 

 

Homepage:  http://uhaweb.hartford.edu/jcohen

 

 

 

 

Office Hours

 

Monday 3:00-4:45 pm

Wednesday 3:00-4:15 pm

And by appointment

 

 

 

 

*NOTE: e-mail is a good way to get a message to me with a response!!

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Texts:

                        REQUIRED TEXTS: 

 

                        Managerial Economics and Business Strategy, 4/e, by Michael Baye, Irwin McGraw-Hill, 2002.

 

 

                        OPTIONAL STUDY GUIDE (but highly recommended!): 

                       

                        Study Workbook for Managerial Economics & Business Strategy.

                       

 

                        See also the book’s website for useful information:

 

                        http://www.mhhe.com/economics/baye

 

                       
Course Description:

 

 EC 312 – Managerial Economics (3 credits)—

 

This is a course in managerial economics.  We will study the details of how firms make their production choices in the context of what is known as “neoclassical economics”. Another important concept to understand in managerial economics is how individuals make consumption choices between various goods given their income available to spend. With this knowledge, one can better target the firm’s product to consumers and make pricing decisions. Finally, we will study how imperfect information, uncertainty, and game theory affect the ways in which production and consumption decisions are made.

Prerequisites: EC 110 and EC 211.

 

Course Objectives

 

Upon completion of the course the student should be able to:

- Understand the fundamentals of neoclassical economics, including how market prices affect demand and supply, how consumers make decisions under budgetary constraints, and how firms choose the optimal quantity of output to produce.

- Relate modern developments in the theory of the firm to neoclassical economics and understand how transaction costs, uncertainty, information deficiencies, and theories of games can help explain firm organization and managerial decision-making processes.

-Explain the effects of market structure on firm conduct and performance.

 

Grading: EVALUATION AND GRADING*:

          

           Class participation and attendance                                                      10%

           Two Midterm Exams (25% each)                                                        50%

           Final Exam                                                                                           25%

           Homework Assignments                                                                      15%

 

Dates for exams:

 

          

           midterm exam I:                       TBA                            

          

           midterm exam II:                       TBA                

          

           Final exam:                              Wednesday, May 10,  5:00 pm - 6:10 pm                

          

Homework assignments are given throughout the semester (available on my homepage).                                                           

 

Students are expected to have read the assigned readings before class and complete the homework assignments on time. Due dates for the homework assignments will be announced in class. It is also expected that you will participate in discussing relevant economic issues that relate to the subject matter, and participation will count toward your final course grade. Real world application of economic concepts is a must for understanding and retention of these concepts. Therefore, it is expected that you will be reading current economic issues through either the Wall Street Journal, Business Week, or similar sources. Some of the articles in the Journal or Newspapers will be used for class discussion and application of the concepts.

 

* NOTE: This syllabus is a guide only and may be revised or deviated from as deemed necessary by the course instructor. No make-up exams are allowed unless there is a documented medical or religious reason, and the instructor must be informed and documentation presented in advance.

 

Attendance Policy:

You are required to attend and be on time for all classes. All homework must be handed in on time, even if you have to miss the class when it is due. The homework problems are available online.  As noted above, class participation will be a factor in determining course grades, so this is another reason why your attendance is important.  If you miss more than two weeks worth of classes, you may be dropped from the course. However, if you decide to withdraw from the course, it is your responsibility to fill out the appropriate paperwork with the registrar’s office. 

 

Contextual Coverage:

Ethics: Not covered specifically.

Global:  Current event, global examples/ applications and theory discussed.

Political, social, legal, regulatory and environmental: Substantial discussion in connection to market structures, pricing and public policy

Technological:  Some use of the Internet.

Demographic diversity: Some references in the context of housing, labor markets and wages.

Communication skills: Exams and homework assignments are written.

 

Disability Guidelines

If you have been diagnosed with a disability and you require reasonable accommodations, you must make an appointment with the Director of Student Services at 768-4260.  Documentation must be presented so that you may be referred to the appropriate office for these accommodations.  All information is kept strictly confidential.

 

 

 

Guidelines on Student Conduct

In an effort to create an environment that is conducive to learning, the following guidelines are presented to make explicit expectations that the Barney School has for students in its classes.  Students are expected to

1.      Follow the Academic Honesty Policy without fail.

2.      Respect differing views on campus and to engage in responsible discussion with others with whom you do not agree.

3.      Regularly attend classes and submit assignments on or before specified deadlines.

4.      Prepare for each class by completing reading assignments, homework and/or case preparation.

5.      Not bring food and drink into the classroom unless instructor approval is given.

6.      Raise a hand if you wish to speak or be excused from the classroom.  Students are not permitted to get up and leave at will.

7.      Act in a reasonable manner in the classroom and halls so as not to disrupt others.

8.      Dispose of gum, trash and paper in designated receptacles.  Do not leave trash in the stairwells, classrooms, desktops or any other non-designated receptacle.

9.      See professors during their regularly scheduled office hours or by appointment.  Office hours are posted on each professor’s door.

10.  Take exams when they are scheduled unless you have been excused on official university business, such as participation in athletic events, or medical emergency (notifying your professor prior to the exam).

11.  Immediately contact professors if you will miss or have missed a class or exam and also to make up what you have missed.

 

The Source also specifies the following acts as punishable misconduct and subject to Judicial Review.

    a.        Damage, destruction or theft of University property;

    b.        Deliberate interference with any class or University function;

    c.        Refusal to vacate a building;

    d.        Tampering with fire alarms or fire-fighting equipment;

    e.        Possession or use of a dangerous article;

      f.        Illegal or unauthorized entry or presence in a facility;

    g.        Alcohol – no possession or use in class;

    h.        Noise and general disorderliness;

      i.        Providing false information to a University office;

      j.        Acting with violence;

    k.        Failure to respond to a reasonable request and to produce identification;

      l.        Possession, use or storage of drugs and drug paraphernalia;

 m.        Abuse of computer access – incl. Copying software;

    n.        Visitors – you are responsible for the actions of your visitors.

 

SEMESTER OUTLINE

         Topics Covered:

I. Fundamentals of Neoclassical Economics

The Fundamentals of Managerial Economics

Reading: Chapter 1

Problems: Chapter 1 homework problems

 Demand and supply

Reading: Chapter 2, chapter 3 (pages 70-89)

Problems: chapter 2 and chapter 3 homework problems

 Theory of consumer behavior

Reading: Chapter 4 (pages 111-134)

Problems: chapter 4 homework problems

EXAM #1

 

II. From Neoclassical to Modern Developments in Microeconomic Analysis

Neoclassical theory of the firm

Reading: Chapter 5

Problems: chapter 5 homework problems

 

Modern Theory of the firm (transaction cost economics)

Reading: Chapter 6

Problems: chapter 6 homework problems

 

Game theory

Reading: Chapter 10

Problems: chapter 10 homework problems

 

EXAM #2

 

III. Market Structure and Analysis

Competition and monopoly

Reading: Chapter 8

Problems: chapter 8 homework problems

 

Oligopoly

Reading: Chapter 9

Problems: chapter 9 homework problems

 

FINAL EXAM:  Wednesday May 10, 5:00 pm - 6:10 pm