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JOHN CABOT UNIVERSITY

COURSE CODE: "EC 310"
COURSE NAME: "Managerial Economics"
SEMESTER & YEAR: Spring 2019
SYLLABUS

INSTRUCTOR: Adrian Stoian
EMAIL: [email protected]
HOURS: MW 3:00-4:15 PM
TOTAL NO. OF CONTACT HOURS: 45
CREDITS: 3
PREREQUISITES: Prerequisites: EC 201, MA 208
OFFICE HOURS:

COURSE DESCRIPTION:
This course applies microeconomic theory and statistics to management problems of a firm. It bridges the gap between purely theoretical economic models and the day-to-day decisions that managers face under conditions of uncertainty and scarcity. The focus is on the optimal utilization of resources within organizations, and the material covered offers a powerful tool for managerial decision-making. A sample of topics to be examined are demand theory and estimation of demand functions; business and economic forecasting techniques; production theory; cost analysis; market structure; strategic behavior and pricing; risk analysis and capital budgeting; government-business relations and the global economy.
SUMMARY OF COURSE CONTENT:
This syllabus is a draft. The final syllabus will be distributed the first day of class.

Introduction

Review of fundamental mathematical concepts 

Supply and demand
Demand theory and estimation
Production theory and cost analysis

Pricing and output decisions without strategic interaction

Sophisticated pricing techniques without strategic interaction

Pricing and output decisions with strategic interaction

Government and business

Strategy in a global economy

 

LEARNING OUTCOMES:

Upon successful completion of the course a student will be able to:

·      Understand the basic forces governing the operation of competitive markets.

·      Analyze the implications of various elasticities of consumer demand for pricing decisions.

·      Characterize consumer preferences and constraints.

·      Characterize the conditions necessary for efficient input usage.

·      Understand the concepts of economies of scale and scope, switching costs and network externalities.

·      Distinguish relevant from irrelevant costs for economic decision-making.

·      Characterize the conditions under which a loss-making enterprise should continue to operate or should shut down in the short run and long run.

·      Understand the conditions that give rise to pricing power and determine how a firm having such power should exercise it.

·      Determine if and how a firm can engage in price discrimination and distinguish between the different types of price discrimination.

·      Analyze possible strategies when a firm is one of just a few companies in a market.

·      Analyze and present relevant information about the strategic conduct of a company.

·      Understand how the government can impact the conduct of a firm.

·      Analyze the strategic conduct of a firm on a global scale.

·      Link the theory presented with the current events in the global economy.

 

TEXTBOOK:
Book TitleAuthorPublisherISBN numberLibrary Call NumberComments
Managerial Economics. Theory, applications and casesAllen, Weigelt, Doherty, MansfieldNorton978-0-393-12005-9  
REQUIRED RESERVED READING:
NONE

RECOMMENDED RESERVED READING:
NONE
GRADING POLICY
-ASSESSMENT METHODS:
AssignmentGuidelinesWeight
Midterm 1 10
Homeworks 15
Presentation 10
Report 10
Final Exam 35
Midterm 2 20

-ASSESSMENT CRITERIA:
AWork of this quality directly addresses the question or problem raised and provides a coherent argument displaying an extensive knowledge of relevant information or content. This type of work demonstrates the ability to critically evaluate concepts and theory and has an element of novelty and originality. There is clear evidence of a significant amount of reading beyond that required for the course.
BThis is highly competent level of performance and directly addresses the question or problem raised.There is a demonstration of some ability to critically evaluatetheory and concepts and relate them to practice. Discussions reflect the student’s own arguments and are not simply a repetition of standard lecture andreference material. The work does not suffer from any major errors or omissions and provides evidence of reading beyond the required assignments.
CThis is an acceptable level of performance and provides answers that are clear but limited, reflecting the information offered in the lectures and reference readings.
DThis level of performances demonstrates that the student lacks a coherent grasp of the material.Important information is omitted and irrelevant points included.In effect, the student has barely done enough to persuade the instructor that s/he should not fail.
FThis work fails to show any knowledge or understanding of the issues raised in the question. Most of the material in the answer is irrelevant.

-ATTENDANCE REQUIREMENTS:
ATTENDANCE REQUIREMENTS AND EXAMINATION POLICY

There will be no make-up mid-term exam. Each student is expected to take the tests at the designated time and place. If a student has a legitimate University excuse for missing the Midterm, then the Final exam will count for 60% of the course grade. Excuses should be pre-approved by the instructor except when such is not possible in an emergency situation. Excuses must include a signed, written statement explaining the reason for the absence and include all relevant documentation. Students missing a midterm without a valid excuse will receive a grade of zero for the missed exam. 

Students must take the final exam as scheduled by the university. You cannot make-up a final exam without the prior permission of the Dean’s Office. The Dean’s Office will grant such permission only when the absence is caused by a serious impediment, such as a documented illness, hospitalization or death in the immediate family (in which you must attend the funeral) or other situations of similar gravity.
ACADEMIC HONESTY
As stated in the university catalog, any student who commits an act of academic dishonesty will receive a failing grade on the work in which the dishonesty occurred. In addition, acts of academic dishonesty, irrespective of the weight of the assignment, may result in the student receiving a failing grade in the course. Instances of academic dishonesty will be reported to the Dean of Academic Affairs. A student who is reported twice for academic dishonesty is subject to summary dismissal from the University. In such a case, the Academic Council will then make a recommendation to the President, who will make the final decision.
STUDENTS WITH LEARNING OR OTHER DISABILITIES
John Cabot University does not discriminate on the basis of disability or handicap. Students with approved accommodations must inform their professors at the beginning of the term. Please see the website for the complete policy.

SCHEDULE

Topic

Week

Reference

Introduction

1

Chapter 1

Review of fundamental mathematical concepts

Supply and demand

Demand theory and estimation



Midterm 1

2

2

3,4



4

Chapter 18

Chapter 1

Chapters 2,3,4

Production theory and cost analysis

5,6

Chapters 5,6

Pricing and output decisions without strategic interaction

Midterm 2

6,7,8



8

Chapters 7,8

 

Sophisticated pricing techniques without strategic interaction

Pricing and output decisions with strategic interaction

9,10

10,11,12

Chapter 9

Chapters 11, 12

Government and business

Group presentations

12

13

Chapters 14

 

Strategy in a global economy; Review

14

Chapter 17