Managerial Economics
BUAD 210
Summer 2003
Dr. Scott Niederjohn
“The master economist ... must be a
mathematician, historian, statesman,
philosopher ... He must understand symbols
and speak in words ... He must study the
present in the light of the past for the
purposes of the future” (John Maynard
Keynes)
BUAD 210:
Managerial Economics
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Instructor
 Dr. Scott Niederjohn
(mniederjohn@wi.rr.com)
 414-617-3813 (cell phone)
 414-607-3813 (home phone)
 Office Hours: By appointment
 Web Page:
http://www.busadm.mu.edu/class
work/ - niederjohn folder
BUAD 210 Outline
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Course Introduction
Discussion of Course Requirements
Introductions
Math Review and Economic
Optimization (Chapter 2)
Supply and Demand (Chapter 3)
Detailed Project Description
Group Formation and Meeting
What is Economics?
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Study of how economic agents
choose to use their scarce
resources.
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Scarcity Necessitates Choice
Who are economic agents?
We develop theories and
models to explain their
behavior.
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Thus, economics is the study of Human
Behavior!
What is Managerial Economics?
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Application of economic theory and
analytical tools to help managers make
better decisions.
Goal of this course is to show how these
tools can be used.
Draws primarily on applied
microeconomics.
Approach to this class
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Review economic theory
Add mathematical models to basic
economic theory
Apply empirical/statistical models to
understand and predict firm demand
Interpret and communicate results
Goal is to apply economic theory and
tools to business analysis
Managerial Economics and
Other Fields of Study
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Economic Theory - Managerial Economics
makes use of microeconomic theory in
demand analysis.
Statistics - Managerial Economics makes use
of statistics in the estimation and empirical
analysis of stochastic relations and
forecasting.
Business Administration - Managerial
Economics provides the tools needed to solve
important managerial problems across all
functional areas of a firm.
Textbooks and Software:
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Managerial Economics, Mark Hirschey,
Version 10E (2003)
EViews statistical software (QMS Software)
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Student version available for purchase in the
MU bookstore.
Feel free to share this software in group.
Components of Course Grade
 Noncumulative Exams (40%)
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Exam #1 (May 24th) (20%)
Exam #2 (June 14th) (20%)
 Homework (20%)
 Term Project (40%) [more on this later]
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Formation of 4 person teams (5/10)
Project Proposal (Due 5/17)
Demand model estimation (Due 6/7)
Final Submission (Due 6/21)
Presentation (6/21)
Determination of Final Grade
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Take weighted sum of
individual grades
Use following conversion
table:
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A: 93-100%
AB: 90-92.99%
B: 80-89.99%
BC: 75-79.99%
C: 70-74.99%
D: 60-69.99%
F: 0%-59.99%
Course Outline
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Math Review and Economic
Optimization (5/10)
Demand and Supply (5/10)
Demand Analysis (5/17)
Demand Estimation (5/17)
Eviews and Demand Estimation (5/17)
Forecasting (5/24)
Course Outline Continued
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Eviews and Forecasting (5/24)
Perfect Competition and Monopoly (6/7)
Monopolistic Competition and Oligopoly
(6/7)
Government Regulations and Market
Economies (6/14)