ECON 340 Syllabus, First Semester 2009/2010 UNIVERSITY OF BAHRAIN COLLEGE OF BUSINESS ADMINISTRATION DEPARTMENT OF ECONOMICS AND FINANCE ECON 340: Managerial Economics Course Syllabus First Semester 2009/2010 Instructors: Instructor Detail Dr. Mohammed A. Alwosabi, Dr. Mohammed A. Abdulla, Dr. Rosylin Mohd. Yusof Dr. Mohammed A. Alwosabi Office : 2 – 110 Office Phone: 17438656 E‐mail: mwosabi@gmail.com Web page: Go to Academic Staff at the UOB website and follow the directions Course Coordinator UTH: 13:00 – 14: 00 MW: 10:30 – 11:30 Dr. Mohammed Alwosabi Course Credit Hours: 3 credit hours Course Pre‐requisite: ECON 140 and QM 250 or QM 255 Course Level : 3rd year
Program(s) to which it contributes: BSc. in Banking and Finance, Accounting, and Management Modes of Attendance offered: Day time class
Educational Resources: a. Main Text and Material: b. Online Resources: Paul G. Keat and Philip K.Y. Young. Managerial Economics: Economic Tools for Today’s Decision Makers, 5th/6th edition, Pearson. Office Hours: The required text is accompanied by a Companion Website
(http://www.prenhall.com/keat) that contains an interactive study guide on‐line and practice test questions. These problems and
exercises are not compulsory, and are provided as a
supplement to the problems provided in the printed text.
However, if you are able to complete some of these, you will
find this a useful additional resource. (Be sure to select the right edition version of the textbook) Page 1 of 5
ECON 340 Syllabus, First Semester 2009/2010 Course Description: (Course Purpose, aims/goals)
The Managerial Economics course is organized to provide students with a basic understanding of the economic theory and analytical tools that can be applied in decision making problems facing the managers private, public, and not‐for‐profit organizations. The goal is to show students how to combine the scarce economic resources of a business so that these resources are allocated in the most efficient manner and to enable them to maximize the value of their enterprise. This course will cover key issues in managerial economics including demand analysis and estimation, production and cost analysis under different market conditions, forecasting and decision making under uncertainty. Graphs, mathematics and statistics will be used to explain the managerial decision making process. Specifically, this course aims to: 1. enable students to approach managerial decision problems using economic reasoning and methods, and quantitative techniques used in the solution of managerial problems in business. 2. apply the laws and determinants of demand and supply to the organizational context, including using qualitative and quantitative methods to forecast demand. 3. use the concepts of elasticity and marginal revenue to establish optimal prices for goods and services. 4. comprehend the theory and estimation of production in short run and long run 5. identify the costs that are relevant to decision making and distinguish between cost reductions due to scale, scope and learning effects. 6. understand the main forms of market structure and recommend pricing and other strategies appropriate for each. 7. distinguish among different special pricing practices made in specific situations. Intended Learning outcomes: Upon successful completion of this course, students should be able to: 1. apply economic principles and methods, and optimization and quantitative techniques in the solution of managerial problems in business. 2. understand the market framework of demand and supply and its application in both the short run and the long run under different market scenarios 3. comprehend the meaning, importance and relevance of estimation techniques in managerial decision making as they apply to demand functions and forecasting procedures 4. assess the importance of being able to estimate demand, production and cost functions and make business forecasts. 5. determine the profit maximizing levels of output under different competitive market structures 6. apply appropriate pricing strategies to different imperfect market conditions 7. analyze different market structures and assess the impact of competitive strategies in imperfectly competitive markets, with applications to pricing policies. 8. apply appropriate principles and strategies in managerial decision making and be able to have an understanding of how managerial decisions are made in the real world. Delivery and Teaching Methods: It is intended to use a combination of the following methods: 1. Lectures and discussions 2. Problem Solving 3. Case studies 4. Exercises and Assignments 5. Quizzes and Exams Page 2 of 5
ECON 340 Syllabus, First Semester 2009/2010 Skills to be developed: This course helps students in developing the following skills: 1. Communication (Oral & Written): Through discussion and class participation 2. Analytical: Through discussion, raising questions, exams, and assignments; and through relating what have studied to real world issues 3. Creative Thinking: Through encouraging students to use creative thinking techniques such as evolution, synthesis, revolution reapplication, changing direction, 4. Team work through encouraging study groups and group assignments 5. Adaptability to changes: Through observation of new changes in the world economy. ASSESSMENT AND GRADING: Your performance in this class will be evaluated as follows: Attendance and Participation 05 Assignments 05 Midterm Examination 40 (24. 11. 2009 @ 03:00pm, Hall 18) Final Exam 50 (11. 01. 2010 @02:30pm) Total 100 Attendance and class participation: — There is a positive correlation between class attendance and performance in the course. Thus, attendance is an expectation for all students. Hence, come on time, switch off your mobile, and be a good participant in the class activities rather than drifting off somewhere. — Students who are absent for 15 % of the total course hours will receive a warning letter. Students who are absent for 25 % of the total course will be withdrawn from the course with a WF and will not be permitted to take the final examination. A WF is treated as a failing grade for calculation of the GPA. — It is expected that all students present on a given day be attentive, polite, and not a source of disturbance. Questions and comments are always encouraged. — If you miss a class it is your responsibility to find out what material or assignments were presented in class. Office hours are devoted only to clarify unclear points not to repeat class lectures. — Please go over the material to be covered in a particular lecture before coming to class. — It is very important that you keep up with the material and take part in class discussion. I want this to be a semester long dialogue between us. Assignments: — Assignments may include solving text problems, analyzing cases, and/or searching the Internet. — The due date for each assignment would be stated in the assignment paper. Late work will not be accepted, so please plan in advance! — Studying in groups is highly recommended, as long as each member of the group pulls his or her own weight, and you each remain responsible for learning the material. It is OK to discuss homework with your classmates, but copying somebody else's answers is cheating. Exams — Exams will be designed to test the students’ understanding of the course material and issues, not memorization. — The midterm exam date, location, format and materials to be covered will be announced in class at least one week earlier. — Students who receive excused absences for the midterm exam will not be given a make‐up exam. Instead, they will be given a special comprehensive final examination that includes material on which they were not previously tested. — Students who arrive late for any exam, for any reason, will not be given additional time. Plan ahead to arrive early — Bring your stationary with you. Sharing of stationery and calculators is not permitted during exams. Page 3 of 5
ECON 340 Syllabus, First Semester 2009/2010 — Instructor will answer no questions during any of the exams. — Mobile phones and any other wireless devices must be switched off during exams. — I reserve the right to change student‐seating arrangements before or during exams Academic Honesty: — Academic dishonesty is a completely unacceptable mode of conduct and will not be tolerated in any form. — Note that academic dishonesty includes, but is not limited to, cheating, fabrication, and plagiarism. — During any exam, communication of any kind between students is expressly forbidden. Students caught discussing answers, using prohibited materials, or assisting others during exams will be referred to the College Disciplinary Board. Responsibilities: — I believe the main purpose of education is to teach students to think effectively. As you interact with the course contents, you should learn general intellectual skills, such as observing, classifying, analyzing, and synthesizing. — I see my primary responsibility to guide, and motivate you as a group of committed and dedicated students in this learning process, and to determine the extent to which you have mastered the material covered in this course. I am committed to this task. — Your responsibility is to be an active learner and a good participant in the classroom discussion. If you are not committed expect your grade to reflect this. However, I want to see everyone does well. — I expect you to work hard in this class and every class. That’s part of the reason why you are here. Don't miss an exam. Do your homework. Study! Use the materials: read the assigned chapter before you do the homework. — Don't cram all your studying in the night before the exam, for you will not only be too tired to think, you will not be able to process all the information. Page 4 of 5
ECON 340 Syllabus, First Semester 2009/2010 COURSE OUTLINE Week Topics to be Covered 1 Chapter 1: Introduction 27 Sep – 1 Oct, 2009 Chapter 2: The firm and Its Goal 2 4 Oct – 8 Oct Review of Mathematical Concepts in Managerial Economics (Will be found online: www.prenhall.com/keat) 3 11 Oct – 15 Oct Chapter 3: Supply and Demand 4 18 Oct – 22 Oct Chapter 4: Demand Elasticity Appendix 4A: Applications of Supply and Demand 5&6 25 Oct – 5 Nov Chapter 5: Demand Estimation and Forecasting 7 8 Nov – 12 Nov Mid‐Semester Break 8&9 15 Nov – 26 Nov Chapter 6: The Theory and Estimation of Production Appendix 6A: A Mathematical Restatement of the Short‐Run Function Appendix 6B: Expressing the Production Function with the use of Calculus 10 29 Nov – 3 Dec Chapter 7: The Theory and Estimation of Cost Appendix 7A: A Mathematical Restatement of the Short‐Run Cost Function Appendix 7B: The Estimation of Cost 11&12 6 Dec – 17 Dec Chapter 8: Pricing and Output Decisions: Perfect Competition and Monopoly Appendix 8A: The Use of Calculus in Pricing and Output Decisions Appendix 8B: Break‐Even Analysis (Volume‐Cost Profit) 13 20 Dec – 24 Dec Chapter 9: Pricing and Output Decisions: Monopolistic Competitions and Oligopoly 14& 15 Chapter 10: Special Pricing Practices 27 Dec – 5 Jan, 2010 16 10 Jan ‐ 19 Jan Final Examinations GOOD LUCK
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