THE UNIVERSITY OF MEMPHIS
The Fogelman College of Business and Economics
Econ 7100, Sections 001
Prof. Cyril F. Chang
Business Applications of Economics
BA 312
Spring 2003
Phone: 678-3565
E-Mail: cchang@memphis.edu
Course Description
This course focuses on the applications of economic concepts to business decisions. The
emphasis is on a series of useful economic concepts including demand, supply, and their
applications to business problems; efficient production and cost control; pricing and output
decisions under different market types and conditions; and government regulation of business.
Textbooks
We will use two textbooks.
1. Managerial Economics, 9th Edition, by James McGuigan, R. C. Moyer, and Frederick H.
DEB. Harris (website http://www.swcollege.com/bef/mcguigan/chooseyourbook.html ).
2. Executive Economics by Shlomo Maital of MIT, is an economics book written for
business executives. It provides supplemental readings to accompany the main
textbook.
Major Topics
This course is designed to cover five major topic areas in applied business economics:
1. Theory of demand and empirical estimation of demand;
2. Business forecasting and macroeconomic indicators;
3. Production and cost analysis as they relate to planning and decision making;
4. Pricing concepts and practices; and
5. Government regulation of business.
Grading System
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There will be a midterm and a final exam, and both of them will include a combination of
essays and problems. There will also be a number of homework assignments for each
of the major topics covered. It is essential that you complete each of the assignments
on time because they can really help you learn the material. Turn in your assignment on
time because late homework will not be accepted.
Your semester grade will rest on the following: Test scores (60%), homework
assignments (30%), and class participation (10%). Class participation involves in-class
presentations, attendance, and contribution to discussion.
We will use the new plus-minus grading system and the final letter grade will be
determined by a curve.
Classroom Misconduct
The University of Memphis policy regarding Classroom Misconduct will be enforced. Details of
the policies can be found in the Student Handbook or at the Office of Judicial and Ethical
Programs web site, www.people.memphis.edu/~jaffairs/'
Econ 7100
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Course Outline
Lesson 1 – Introduction
McGuigan, Moyer, and Harris
Ch. 1 - Goals of the Firm
Ch. 2 - Fundamental Economic Concepts
Maital, Ch. 1 - Cost, Value, and Price: Three Pillars of Profit
Lesson 2 – Economic Optimization
McGuigan, Moyer, and Harris, Web Chapter A – Optimization Techniques
(This Web Chapter is not in the textbook and you should download it from:
http://www.swcollege.com/bef/mcguigan/mcguigan9e/mcguigan9e.html). We’ll review
differential calculus and its applications to optimization problems. We’ll emphasize the
applications of math to business decision making.
Assignment 1: Economic Optimization Problem Set
Lesson 3 – Demand Analysis
Student Presentations:
Presentation 1. Maital, Ch. 10 - Competing by Cooperating
Presentation 2. Maital, Ch. 8 - Markets and Demand
McGuigan, Moyer, and Harris, Ch. 3 – Demand Analysis
Lesson 4 – Demand Analysis (Cont’d)
Student Presentation:
Presentation 3. Maital, Ch. 9 - Calculating Risks
McGuigan, Moyer, and Harris, Ch. 3 – Demand Anlysis (cont’d)
Assignment 2 - Elasticity Problem Set
Lesson 5 – Demand Estimation
McGuigan, Moyer, and Harris, Ch. 4 - Demand Estimation
Assignment 3 - Empirical Estimation of Demand
Lesson 6 - Student Presentations
Presentation 4 – Assignment 3 (Empirical Estimation of Demand)
Presentation 5 - Major economic Indicators and their Impact
Lesson 7 – Forecasting
McGuigan, Moyer, and Harris, Ch. 5 - Business Forecasting
Assignment 4 – Business Forecasting
Midterm Exam – Tuesday, March 4
Lesson 8 – Production
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McGuigan, Moyer, and Harris, Ch. 7 – Production Economics
Lesson 9 – Cost Analysis
McGuigan, Moyer, and Harris, Ch. 8 and Ch. 9 - Cost Analysis and Applications
Student Presentations:
Presentation 6 – Maital, Chapters 2, 3, 4
Presentation 7 – Maital, Chapters 5, 6, 7
Assignment 5 – Cost Applications
Lesson 10
McGuigan, Moyer, and Harris,
Chs. 10-13
Ch. 16 – Pricing Techniques and Analysis
Lesson 11
McGuigan, Moyer, and Harris, Ch. 17 – Government Regulation
Final Exam – Tuesday, May 6
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