1
Topical Outline
DATE
SUBJECT
8/22-9/10
Tools, Optimization
9/12
Consumer Behavior
9/17
Demand
9/19
Uncertainty
9/24-26
Production
10/1-3
Production & Review
10/8
EXAM I
NOTES Slides
1,2,3 1,2,3
4
5
SKIP
7
7
10/10
Cost & Exam Results
8
MIDSEMESTER HOLIDAY
10/15-10/17 Cost
10/22
Horizontal Relationship
10
10/22-10/29 “
“
11
11/5
Vertical Relationships
12
TEXT
1,2
3
4
5
SKIP
7
8
8
10
10-11
12-13
14
CLASS EVENTS
Computer Instructions
(6 in NOTES is an application)
HOMEWORK #1: DUE SEP 26
Balloon Exercise
EXAM I: Cumulative to 9/26.Sample TE
SAMPLE TEST ANSWER
10/11 Fri.
11/5-12
11/14
11/19
11/26+
12/1
Location Analysis
EXAM II
14
Government
“
“
17
12
HOMEWORK #2 and ANSWERS with
EXCEL SPREADSHEET
EXAM II: Cumulative to 10/31 Sample
SAMPLE TEST ANSWER
and EXCEL SPREAD SHEET
16, 17, 18
HOMEWORK #3
5
12/
Cumulative of the whole semester.
You have already seen a similar exam.
(Exam #2)
TEXT is Robert S. Pindyck and Daniel L. Rubinfeld Macroeconomics, 3th ed. Prentice Hall,
Englewood Cliffs, New Jersey, 1998.
FINAL
Mon,
Dec. 9, 2002,
1:00p.m.-3:00p.m.***
[MICROECONOMICS ]
[EC.3100a ]
[***Fall, 2002***]
Instructor:
Place & Time:
Office:
Office hours:
Telephone:
E-mail:
Professor Michael Tansey
***TTh 12:30-1:45 p.m. Conway 205***
Conway 313
***TTh 1:45-4:00 p.m., Conway 313.
501-4007
Michael.Tansey@rockhurst.edu
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Fax:
816-501-4693
Text: The suggested textbook is Robert S. Pindyck and Daniel L. Rubinfeld
Macroeconomics, 3th ed. Prentice Hall, Englewood Cliffs, New Jersey, 1998 (can be
ordered from Amazon.com or Bn.com). On reserve at the library will be a copy of a widely
used textbook by Hirschey and Pappas, also called Managerial Economics, which may
provide an easier, practical alternative. The only required purchase is the Wall Street
Journal. Class NOTES will be on the computer in the Ec. 3100 on the (Isabel) R-Drive
(usually with the prefix “MNB”). These chapters will contain most of the powerpoint
slides that are shown in lecture in class as well as covering the lecture material in class.
You can also reach the website cte.Rockhurst.edu/tanseym to get the chapters, powerpoint
slides, and other class materials.
Course Description: This course presents consumer theory and the theory from the point of
view of individual decision makers(microeconomics). The position of the firm within the larger
macro and political economic world is considered using demand theory, production theory, the
theory of the firm, and welfare economics.
Learning Objectives: the most important skill in a job with any organization is communication.
This course is designed to give you practice in using these communication skills: (1) speaking,
(2) writing, (3) solving problems, (4) reading the newspaper, and (5) discussing major economic
developments. After completing this course the student should be able to:
1) Apply supply and demand theory with numerical and graphical examples.
2) Calculate elasticities and use the concept to describe market behavior.
3) Be able to read time series data and estimate elasticities graphically.
4) Relate costs to productivity and use cost theory for resource allocation decisions and
understand the four fundamental concepts of production theory (diminishing returns,
substitutability, economies of scale and economies of scope, and the learning curve).
5) Analyze price and output decisions for the eight market types using competitive analysis and
an understanding of vertical relationships among markets.
6) Discuss and explicate basic issues concerning government intervention and globalization and
ethics in the context of managing in different cultures.
7) Apply and explicate economic theory to industry cases, media articles, and other sources of
information (e.g. data and slides).
8) Be able to access Power Point, and know how to access Word for Windows.
Course Requirements: Think of the teacher as a coach. Think of yourself as being on a
team. In order to win you must learn what you don't know. Once you can tell the coach
what you don't know, he can help you learn the few tricks he knows. For the rest, you must
be resourceful, creative, and willing to share with others what you have learned. In class we
will share and learn together.
Class Discussion:
On Wednesdays bring your Media publications for the week to class. From them you will
scramble to find articles that illustrate key economic concepts that have been covered in
the textbook. You are expected to discuss major issues that are presented in the media
and to explicate economic concepts based on the chapters assigned for the week or in
3
previous weeks. Oral quizzes over the chapter material will frequently be made in class.
Such oral quizzes are strictly voluntary and will be awarded with points. Particularly good
insights and use of economic concepts introduced in discussion may also be awarded with
points. The best preparation for these oral quizzes and discussion is to read the textbook
chapters that are assigned and to keep current with news publications. To receive an “A”:
in the class you need to make points through other sources besides tests and homework
assignments.
Individual Performance on Class Simulations.
The work done in class on simulations will test comprehension of the class Notes and
textbook. It will also give you practice in the use of computers.
Individual Written Analysis:
The exams will allow you to show your ability to think clearly under a time constraint.
The exam questions will come from the homework problems and media assignments.
Group Written Analysis and Problem Saving:
Group homework problems will provide the opportunity to learn to work together in
problem solving.
Evaluation
HOMEWORK #1 (100 points): Due ***Sep. 19, 2002***. DEMAND
ECONOMIC PROBLEMS: (Group) cover NOTE Chapters 1,2, 5.
MEDIA ANALYSIS (Do individually, not as a group): After the media assignments
you will recognize the determinants of demand appearing in the media, how to
apply decision trees to media reports, and how to recognize the concept of present
value in the media.
HOMEWORK #2 (100 points):
Due ***Oct 22, 2002*** PRODUCTION, COST,
& MARKET STRUCTURE
ECONOMIC PROBLEMS: (Group) cover NOTE Chapters 7 and 10
MEDIA ANALYSIS (do media analysis individually, not as a group): After the
media assignments you will recognize how production processes are continually
being reported and how to recognize shifts in costs due to changes in production
processes.
HOMEWORK #3 (100 points): Due ***Nov 19, 2002*** UNCERTAINTY AND
MARKET STRUCTURE.
ECONOMIC PROBLEMS: (Group) cover NOTE Chapters 11, 12, 3, 15
MEDIA ANALYSIS (do media analysis individually, not as a group): After the
media assignments you will recognize how to construct a vertical chain from a
recent media article.
EXAMS (each exam is worth 200 POINTS for a total of 600 points for the semester): Each
exam is based on quizzes, the textbook, the Study guide, problem solving examples
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presented in class, and handouts distributed from time to time in class. Exams and the final
are open book. Bring a calculator.
Date of final exam: ***Mon, Dec. 9, 2002, 1:00p.m.-3:00p.m.***
GRADES: The following grades will be matched to point totals for students: A=900+,
B=800-899, C=700-799, & F is below 600. "+" and "-" are used for borderline cases. These
limits may be adjusted downward but will not be adjusted upward.
Policies
 Media Articles. Unless you have a subscription, all media articles for the assignments should
be photocopied. Please do not use original copies from the library- only photocopies. You
may use the internet to get articles for your assignments.





Make-up exams. Any makeup exams will be given immediately after the final exam, will be
essay (therefore, not necessarily comparable to the exam given in class) and will take into
account the advantages of taking the exam later than the rest of the class.
ON-Time Assignments. DUE BY ***12:15 p.m.*** IN CLASS: NO EXCEPTIONS
(HOMEWORK CAN BE TURNED IN EARLIER: 50% OFF IF LATER). The deadlines for
some assignments may be extended beyond what is shown in the syllabus. But such
extensions will be made before the deadline shown in this syllabus and can be done only with
permission of the professor. In-class experiments, simulations, and worksheets may not be
made up.
Individual Effort. Exams, finals, newspaper article homework and quizzes will not be team
efforts; they must be done alone. However, homework problems will be done as teams.
Attendance Policy. As stated in the Rockhurst bulletin. Please note the limit of 7 absences.
Disabilities. If you have a disability that might affect your work( in or out of class), it is your
responsibility to contact Mike Anderson, director, access office, 109 Massman, 501-4856.
This office works with students and faculty in planning necessary accommodations.
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Additional Information
A. Course Information Table
Topical Outline
Objectives
AACSB and SOM
Foundations,
Perspectives and Themes
Fdn: Behavioral Science
P/T: Political, Social,
Legal, Regulatory,
Environmental,
Leadership
Skills and
Proficienceis
Practice of
Management
Case (industry)
Study: Education
Optimization
Fdn: Mathematics
Case (industry)
Study: Boeing &
Defense Industry
Demand
Fdn: Economics
P/T: Global, Political,
Social, Legal,
Regulatory,
Case (industry)
Study: Auto Industry
Demand Estimation
Fdn: Statistics &
Mathematics, Economics
Case (industry)
Study: Airline
Market
Sales Forecast
Project
Fdn: Statistics &
Mathematics (algebra),
Economics
P/T: Leadership
Production
Fdn: Economics
P/T: technological issues
Cost
Fdn: Economics
P/T: Global, Political,
Social, Legal,
Regulatory.
Technological issues.
Balloon Experiment
Fdn: Behavioral Science,
Mathematics
(logarithms) & Statistics
Written, computer
(regression), reading
the media (library
use), oral
communication
Case Study: Each
student’s own firm.
Case (industry)
Study: Health
industry
Case (industry)
Study:
Telecommunication
Market
Team development,
written
communication,
Scientific Production
Experiment
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P/T: leadership,
technological issues,
environmental issues
media reading (library
use)
Capital Budgeting
Fdn: Accounting,
Mathematics
Ethical issues
written
communication
Uncertainty
Fdn: Mathematics &
Statistics
P/T: Environmental
issues (smoking)
International
Fdn: Economics
P/T: Global, leadership,
technological issues,
environmental issues,
Ethical issues
oral communication
(impromptu
discussion)
Case (industry)
Study: John Deere
Government &
Threat Paper
Fdn: Economics
P/T: Leadership,
technological issues,
environmental issues,
Demographic diversity,
Ethical issues
Oral & written
communication
(critique), library use
Case (industry)
Study: Each
student’s own market
Live Case (industry)
Case (industry)
Study: Oil Market
B. Brief description of all teaching or learning activities used: (lecture, problem review, cases,
discussion, Socratic method, videos, research project, learning journals, article portfolios,
guest speakers, teaming, computer simulations, oral presentations, live case, etc.).






Each week involves a specific industry study to introduce and illustrate the real world
application of a managerial economic concept to the media.
Powerpoint slides are integrated into text and are used in lectures to present each industry
study.
6 media assignments have the students going through the media to find illustration of key
economic concepts (demand function, demand shifts, decision trees, forecasting, production
function, cost effectiveness). The forecasting and decision tree assignments both serve as the
basis for a “focus,” where students provide a succinct, impromptu oral summary of their
media examples, to illustrate the application of key economic and statistical principles.
At the beginning of each class, the Socratic Method is used in a facilitated discussion of what
is going on behind the headlines and how the textbook examples are applied. Students are
awarded points for their in-class responses.
Team building is developed on the homework problems.
Students learn to use simple regression in comparing the sales/advertising relationship.
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
Coaching is used on a team-by-team basis by the professor to help students with their
homework, particularly the team based work.
C. Complete list of materials used: (case names, video names, self-awareness instruments,
software, simulations, etc.).
(case names: see above table for cases for each topic).
Computer program (either Excel or SPSS) for regression analysis
Powerpoint slides are shared with students.
Balloon experiment involves helium canisters and balloons.
Computer lab for students are needed.
D. Computer instructions for getting into EXCEL, getting access to PowerPoint slides from
lectures and getting access to written instructions, media, and NOTES for the class.
EXCEL INSTRUCTIONS (C-2,C-16)
1. 1. Turn on the computer by pushing on the lower button at the center of the panel
with the crossed-zero marking. You may also need to push the button to turn on the
monitor (TV screen). The computer will answer:
Authorized Users Only
You’re an authorized user so click “OK”. If the computer asks for a password, try
“Student” and then click “OK”. The computer will flip on several menus while you sit
morosely waiting for it it to finish.
2. Double click the MICROSOFT OFFICE symbol. In other words use the mouse at the
right side of the computer to move the arrow on the screen onto the little box above
Microsoft Office. Then quickly push the left hand side button on the mouse.
3. A new menu comes up with the different monikers.
Double click the EXCEL moniker.
The computer responds by giving you a blank worksheet.
4.
Put your diskette into the slot (disk drive) on the computer. The top of the
diskette should face to the right when you put it in a vertical slot or should face upward if
you have a horizontal slot. Don't jam it in.
5. At the top left corner of your screen click "file".
Click “OPEN” in the new menu. In the “OPEN” menu that is presented, there is a little
“Look in” box. Hit the black arrow at the side of the box and click on the “A:\” drive.
The "A:\" refers to your diskette in the "a" drive. Suppose you have the file "macro.xls"
on your diskette. Double click on that file. The "macro" is the name of the file. The .xls
is the indicator that the file is a worksheet for Excel.
6. Check to make sure the green "num lock" light is on. If not, hit the Num lock button
until it is.
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7. Click on the first cell in the worksheet to enter your first item of data. After entering
it, hit the "Enter" key. The data should move to the top of the first column, A. If, not call
the professor. Continue entering the subsequent data, hitting the ENTER key after each
one. I recommend putting your dependent variable in column J and your independent
variable in column A.
8.
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
When you have entered the data, then save the data. This is done by:
Click the word, File, at the top left hand corner of your screen.
When the menu comes down, double click "save as".
In the new menu space, next to "Filename" enter "a:\std20" if your number given in
class is 20. From now on your file will be on your diskette under the name:
“std20.xls” and that file includes all the data you have punched in . From now on you
will be able to repeat step 5 using "std20" in place of "macro.xls" and will be able to
ignore steps 6 and 7. If your number in class was 21 then enter "a:\std21", etc.
Note: The computer tacks on "xls" to indicate that it is an EXCEL file. You will be
able to access that file anytime in the future when Excel is on and
you have your diskette in the computer. Watch out!- if you forgot
to put "a:" when you save, your file will not be placed on your
diskette but will be lost somewhere in the computer where it is
likely to overwritten or erased by someone else. See your
professor if this happens.
9.
Print your values so that I can see what you have used for your regression.
To print your result, go back to the upper left "File" column on your screen
and:
Click the word, "File".
10. From the resulting menu
Click "Print".
A Print menu comes up. Click "OK" at the bottom of that menu. Your results
should come out at the printer. Make sure you get a printout of your
original data which is on sheet #1.
11. Since your variables now need no further transformation run your regression. At the
top of the screen;
Click "TOOLS"
Under the TOOLS menu
Click "DATA ANALYSIS"
NOTE: There may be no such words on the menu.
In that case you will have to load the data analysis package.
To do this
Click “ADD-INS”
Click the empty box next to “Analysis ToolPak” so that an “X”
appears in the empty box.
Click “OK” and wait a few seconds.
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Now when you click the TOOLS word you will see the “DATA
ANALYSIS” package at the bottom of the menu. Now click it.
Under the DATA ANALYSIS menu, you’ll see two arrows, one pointing upward
and one point downward. Click just above the downward pointing arrow until
you see “Regression.”
Click “Regression”
12.
It is important to place an “x” in the “Residuals”, “Standardized Residuals”, and
Line Fit Plots boxes about half way down the resulting menu.
13. Click the “OK” button at the top right of the Regression menu. The regression will
run and the results will appear on the screen after several hiccoughs.
14. You now need to arrange the graphs on your worksheet. You do this by clicking on
the border of diagram until little black boxes appear at the corners and middle of the
borders of the diagrams.

At the bottom right of your screen are two little black arrows that point horizontally in
opposite directions. By clicking between the two arrows you can move horizontally
anywhere on your spreadsheet to get a better view of the graphs your program has
drawn for you to show the relationship between the actual data and what your model
predicts.
At the far right of your screen are two little black arrows that point vertically in
opposite directions. By clicking between the two arrows you can move vertically
anywhere on your spreadsheet to get a better view of the graphs your program has
drawn for you to show the relationship between the actual data and what your model
predicts.
On the upper left (or lower right) corner of each graph to increase the size of the
graph (or make it smaller if you push it toward the lower right)
On the middle of the lower or upper border (find the precise little black box to click
on) of the graph to change the vertical position of the graphs.
On the middle of the left-hand or right hand borders (find the precise little black box
to click on) of the graph to change the horizontal position of the graphs.
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15.
To print your result, go back to the upper left "File" column on your screen and:
Click the word, "File".
From the resulting menu
Click "Print".
A Print menu comes up.
Click "OK" at the bottom of that menu.
Your results should come out at the printer.
16.
Make sure you get a printout of your original data which is on sheet #1. If you
don’t have such a printout, click “Sheet1” at the bottom right of your spreadsheet.
Your data should appear instantly on the screen. Now repeat step #10. Your
regression cannot be evaluated without this printout.
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17.
If worst comes to worst you can always turn off the computer.
INSTRUCTIONS on getting CLASS NOTES, media, and
instructions (C-2,C-16)
1. & 2. See step #1 and #2 above.
3. A new menu comes up with the different monikers.
Double click the “Microsoft Word” symbol.
The computer responds by giving you a blank worksheet with toolbars across the top
which contain little pictures.
4.
Put your diskette into the slot (disk drive) on the computer. The top of the
diskette should face to the right when you put it in a vertical slot or should face upward if
you have a horizontal slot. Don't jam it in.
5. At the top left corner of your screen click "file".
Click “OPEN” in the new menu. In the “OPEN” menu that is presented, there is a little
“Look in” box. Hit the black arrow at the side of the box a new menu will appear.
Double Click on the “R:\\Vincent\Courses” words
Wait for the courses to appear.
Double Click on “Ec320”
6. There will be a set of files beginning with the letters, MNG. Select the one which
ends in the chapter you are interested in or the file you have been asked to find.
7. You can Print whatever file you have on your screen. Go back to the upper left "File"
column on your screen and:
Click the word, "File".
8. From the resulting menu
Click "Print".
A Print menu comes up. You can select how many copies and which pages you
want to print. After making a selection, Click "OK" at the bottom of that
menu. Your results should come out at the printer.
9. When you are done, go to the upper left hand corner and click the button with the
minus sign.
10. If worst comes to worst you can always turn off the computer.
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INSTRUCTIONS on getting PowerPoint Slides used in class
(C-2,C-16)
1. & 2. See step #1 and #2 above.
3. A new menu comes up with the different monikers.
Double click the “Power Point” symbol.
The computer responds by giving you a blank worksheet with toolbars across the top
which contain little pictures.
4.
Put your diskette into the slot (disk drive) on the computer. The top of the
diskette should face to the right when you put it in a vertical slot or should face upward if
you have a horizontal slot. Don't jam it in.
5. At the top left corner of your screen click "file".
Click “OPEN” in the new menu. In the “OPEN” menu that is presented, there is a little
“Look in” box. Hit the black arrow at the side of the box a new menu will appear.
Double Click on the “R:\\Vincent\Courses” words
Wait for the courses to appear.
Double Click on “Ec320”
6. There will be a set of files beginning with the letters, MNG and ending with a period
and “PPT”. Select the one which contains the chapter you are interested in or the file
you have been asked to find.
7. You can Print whatever file you have on your screen. Go back to the upper left "File"
column on your screen and:
Click the word, "File".
8. From the resulting menu
Click "Print".
A Print menu comes up. You can select how many copies and which slides you
want to print. After making a selection, Click "OK" at the bottom of that
menu. Your results should come out at the printer.
9. When you are done, go to the upper left hand corner and click the button with the
minus sign.
10. If worst comes to worst you can always turn off the computer.