Rockhurst University
Helzberg School of Management
Managerial Economics
EC6000
Spring 2008
Instructor:
Place & Time:
Office:
Office Hours:
Telephone:
E-mail:
Fax:
Jacob Kurien, Ph.D.
Conway 204 ,Wednesday, 6:00-8:40 pm
Conway 305
Tuesday and Thursday: 10:00 am – 12:00 noon
816-501-3175 (office)
jacob.kurien@rockhurst.edu
816-501-4650 or 4693
Text: Paul G. Keat and Philip K.Y. Young, Managerial Economics: Economic Tools for
Today’s Decision Makers. Prentice Hall (5th Edition).
Course Description
Managerial Economics – Course explores economic concepts and analysis for making
business decisions. Topics can include demand and supply, forecasting, competition, sales
strategies, productions, efficiency, integration, cost and pricing, as well as macro and global
issues in relation to how they impact business decisions and firms. Prerequisites: Six hours of
undergraduate micro and macroeconomics (EC 2000 and EC 2100), or EC 4550.
Using a middle management context for learning, the student
should be able to:
1 Apply marginal analysis with demand and supply theory.
2 Calculate elasticities and use the concept in planning and explaining
market behavior.
3 Relate costs to productivity and use cost theory for resource allocation
decisions.
4 Discuss ethical and efficiency implications of government intervention
and emerging globalization.
5 Analyze and evaluate how macroeconomic and global conditions impact
managerial decisions.
6 Demonstrate oral and written communication skills by communicating
economic analysis of a project.
Develop an understanding of and the ability to apply demand-supply theory
Working knowledge of production and cost theories.
To be aware of and gain knowledge about global issues in business management.
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Course Requirements
Basic Mathematics and Statistics
Method of Instruction:
Class lectures, use of instructional aids, take home work sheets, and discussions.
Attendance:
It is required that students attend classes regularly and come on time for the class. However, if a
student expects to miss class for personal reasons, prior permission of the instructor is required. The
instructor can drop a student from the class or lower the grade for lack of attendance. Students are
responsible for keeping track of their attendance.
Evaluation
There will be two tests and a final exam at the end of the semester. Team Presentation and a term
paper will supplement the tests as components for evaluation.
Test I
Test II
Final Exam
Team Presentation
Term Paper
Total
50 points
50 points
50 points
25 points
25 points
200
The format for the tests will be as follows:
a)
True/False
b)
Multiple Choice
c)
Problem solving
d)
Essay questions
Grades:
90% or above = A (Outstanding)
80%-89%
= B+ (Above average)
70%-79%
= B (Average)
60%=69%
= C (Below average)
Less than 60%= F (Fail)
180-200 points
160-179
140-159
120-139
below 120 points
Make-up Exams
It will be given to only those students who miss an exam for valid reason. The student must inform
the instructor about his/her inability to take the exam on the scheduled date. The make-up exams
must be taken before the end of the scheduled test week. For scheduling the make-up exams, the
student must contact the HSOM Dean’s suite. Exams are given on Monday 8-10:30 am, Tuesday
and Thursday 2-6:00 pm.
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Team Presentation
Each team will consist of 5-6 members. A contemporary economic/financial/management issue will have to
be researched and presented by the team. A proposal indicating the topic chosen for presentation and the
task delegated to each member will have to be submitted to the instructor for approval. Each member must
submit a summary report (2-3 pages) of their individual contribution towards the group presentation.
Provide copies of referred documents.
Term Paper
At the beginning of the semester a research proposal will have to be submitted for comments and
suggestions. The proposal should focus on an economic issue of interest to you and conforms to the course
outline.
The format to be followed:
• Name
• Title of paper
• Table of contents
• Brief review of the researched material, comments, observations, analysis and conclusions.
• List of the references, with documentary support, e.g., photocopy, original articles, information
downloaded from the website.
• Staple the above document/s to the final term paper.
• The term paper must be printed; double-spaced and should not exceed 5-8 pages in length.
• Submit your proposal along with the term paper.
A term paper must:
1. COMPLY with the format.
2. NOT be plagiarized.
3. BE concise and analytical.
4. BE submitted on time.
ADA Statement
•
RU official policy: “Rockhurst University is committed to providing reasonable accommodations
for students with disabilities. Please contact Sandy Waddell, Director, Access Office (Massman
Hall Room 7, (816) 501-4689, sandy.waddell@rockhurst.edu) to provide documentation and
request accommodations. If accommodations have already been approved by the Access Office,
please communicate with the instructor of this course regarding these arrangements by the
second week of class in order to coordinate receipt of services.”
Student Contact Information:
•
RU official policy: “Student contact information must be kept current in order to receive
important notices from Rockhurst University. Your contact information is online via your
BannerWeb account. Please check your local address, local phone number, and emergency
contact information on BannerWeb and revise as needed. All important University notices will
be sent only to your RU email address. Please check your RU email account in addition to any
other email accounts you may have. Accounts are activated at the Computer Services Help Desk
(Conway 413).”
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Academic Honesty Policy:
•
Plagiarism and cheating will not be tolerated. The Rockhurst University Catalog provides
examples of academic dishonesty and outlines the procedures, penalties, and due process
accorded students involved in academic dishonesty. All infractions will be immediately referred
to the Dean's office. In your research paper, make sure you provide citations for all ideas and
information that are not your own.
Course Outline
Managerial Economics
EC6000 Spring 2008
Chapter Title
Introduction
Chapter 1
The Firm and Its
Goals
Chapter 2
Supply and Demand
Chapter 3
Demand Elasticity
Chapter 4
Demand Estimation and
Forecasting
Chapter 5
The Theory and Estimation of
Production
Chapter 6
The Theory and Estimation of
Cost
Chapter 7
Game Theory and
Asymmetric Information
Chapter 11
The Multinational
Corporation and
Globalization
Chapter 13
EC6000 SYL S08 KURIEN.docx
Topics
Scope, nature and relevance; managerial decision making;
managerial rule of thumb; economics of business; review of terms
and concepts; basic economic questions
The firm; economic and non-economic goals; profit maximizing
and maximizing stockholders wealth
Market demand and supply; market equilibrium; rationing and
allocative functions of price
Concept and the measure of price elasticity of demand;
determinants of elasticity; demand elasticity and revenue; Cross
and income elasticity of demand
Regression analysis; estimating and interpreting the regression
coefficients; problems in the use of regression analysis;
prerequisites of a good forecast and forecasting techniques;
economic indicators
Production function; short-run analysis; the law of diminishing
returns; importance of production functions in decision making
Importance of cost in decision making; relationship between
production and cost; economies of scale and scope
Introduction Taxonomy of games; Prisoner’s Dilemma; game
theory and actions; Asymmetric information; Adverse selection
and moral hazard
Meaning and goals of globalization; Is globalization good or bad?
Future prospects; risk factor; exchange rates and foreign direct
investments
4
Tentative Study Plan
Week
I
01-23-08
II
01-30-08
III
02-06-08
IV
02-13-08
V
02-20-08
VI
02-27-08
VII
03-05-08
VIII
03-19-08
IX
03-26-08
X
04-02-08
XI
04-09-08
XII
04-16-08
XIII
04-23-08
XIV
04-30-08
XV
05-07-08
XVI
05-14-08
Assignment/Chapter
Introduction
CHAPTER 1
The firm and its goal
CHAPTER 2
Supply and Demand
CHAPTER 3
Demand Elasticity
CHAPTER 4
Test Review
Test I
Demand Estimation and Forecasting/CHAPTER 5
Team Presentation
The Theory and Estimation of Production/CHAPTER 6
Team Presentation
The Theory and Estimation of Cost
CHAPTER 7
Team Presentation
The Theory and Estimation of Cost
CHAPTER 7
Team Presentation
TEST REVIEW/TEST II
Game Theory and Asymmetric Information
CHAPTER 11
Team Presentation
Submit paper
Game Theory and Asymmetric Information
CHAPTER 11
Team Presentation
The Multinational corporation and Globalization
CHAPTER 13
Team Presentation
The Multinational corporation and Globalization
CHAPTER 13
Team Presentation
FINAL EXAM REVIEW
Team Presentation
FINAL EXAM
Dates to remember:
01-30-08
02-06-08
02-20-08
04-02-08
04-09-08
04-14-08
Submit your term paper proposal
Submit the names of team members and topic for team presentation
I Test
II Test
Submit Term Paper
FINAL EXAM
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