First Semester 2007
EC 209: Managerial Economics
Group A
Course Contract
Professor
Dr. Jacqueline Khorassani
Class Hours & Locations
Mondays: 11:00-11:50, Fottrell (AM)
Tuesdays: 15:00-15:50, Cairnes Theatre
Thursdays: 15:00-15:50, Tyndall Theatre
310 St. Anthony’s
Office
Office Hours
Voice
Mondays: 14:00-15:00
Tu & Th: 12:00-13:00
Wednesdays: 13:00-14:00
& by appointment.
091- 493105 (office)
E-mail
khorassj@marietta.edu
or jacqueline.khorassani@nuigalway.ie
Web:
http://www.marietta.edu/~khorassj
Blackboard
http://blackboard.nuigalway.ie (More information on this later.)
Course Description
This course is about the application of economic principles to managerial decision
making. What types of decisions? Well, in an ever changing economic environment, the
managers of a firm have to continuously assess their pricing strategies and find ways to
optimize productivity, efficiency, cost and profitability. This is not as easy task as
managers don’t have full information about the present condition of their input or output
markets and they are uncertain about the state of these markets in the future. So, they not
only need to use the microeconomic tools such as the supply and demand model but they
also need to use the statistical tools such as the regression analysis to learn more about the
current status of the markets and to forecast the future.
Course Objectives
Upon the completion of this course you will get a better understanding of the
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fundamentals of managerial economics.
supply and demand model.
quantitative demand analysis.
consumer behavior.
measures of productivity and cost.
organization of the firm.
nature of the industry
managing in competitive, monopolistically competitive, oligoplistic, and monopolistic
markets.
Means of
Communication
Our main means of communication is the classroom. The students are expected to attend
classes on a regular basis. In addition, I may also communicate new information to you
via my web page and/or blackboard. Similarly, please feel free to visit me in my office,
call me, or e-mail me to discuss your concerns and questions. I have also made it possible
for you to send me your comments anonymously via my web page.
Texts
The textbook for the course is Managerial Economics and Business Strategy, fifth edition,
by Michael R. Baye. You must purchase a copy of this book. Please make sure that you
purchase this book from the college bookshop because a chapter from another economics
textbook is included with the version of the book available in the college bookshop. We
will be using this chapter during the course.
Aplia.com
Is a source that enables you to complete your assignments on line. These
assignments carry 100 points. Note the course is called EC 209: Managerial Economics
(FT B. Commerce) in Aplia and please make sure that you register for the correct course.
Registration Instructions:
1. Connect to http://www.aplia.com
2. Click the System Configuration Test link below the Sign In and Register sections
to make sure you can access all of the features on Aplia's website. This takes just a
few seconds and tells you how to update your browser settings if necessary.
3.
Return to http://www.aplia.com. If you have never used Aplia before, click the
New Student button and enter your Course Key: R8WC-VRSZ-SCBQ. Continue
following the instructions to complete your registration.
4. If you have used Aplia before, sign in with your usual e-mail address and
password and enter your Course Key when prompted: R8WC-VRSZ-SCBQ. If
you are not prompted for a new Course Key, click the Enter Course Key button to
enrol in a new Aplia course. Enter your Course Key when you are prompted.
5. If you understand your payment options, pay now. Otherwise, postpone your
purchase decision by choosing the option to pay later. Your payment grace period
ends at the end of the day on 09/23/2007.
My Teaching Philosophy
I believe that straight lecturing is not the most effective way to teach economics. I also
believe that you are capable of studying and understanding most of the material covered in
the book on your own if you give it your best shot. Thus, I am not going to stand here and
repeat the chapters of your textbook everyday. In other words, I am not going to be a
transmitter of knowledge. Rather I view myself as designer. Further, I view students as
knowledge constructors rather than sponges.
My task therefore, is (1) to design a map that will lead you toward the construction of
your knowledge; (2) to help you figure out how to ask the right questions when you feel
lost; (3) to ask you questions in an attempt to find out if you are on the right track; (4) and
to give clear and meaningful answers to your questions. I realize that you are different
form each other. You have different backgrounds, skills and learning styles. That is why
I use a variety of strategies and media in this class. I plan to give each of you as much
support and guidance as possible.
Your task is (1) to study the map; (2) to follow the map; (3) to ask questions when you
feel lost (I always prefer an stupid question to no question as the alternative is remaining
stupid.); (4) and to respond to my questions. (Be prepared to be wrong sometime. Being
wrong is okay as making mistakes is an inevitable part of learning.)
Our joint task is to build a learning environment in which we feel free and comfortable to
express our thoughts; to respectfully disagree with each other at times; and to learn from
each other.
Tentative Course Outline
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Grading
Introduction to managerial economics Baye, Chapter 1
Review of Demand and Supply. Baye, Chapter 2
Quantitative Demand Analysis. Baye, Chapter 3
Consumer Choice Theory and Applications. Baye, Chapter 4
Criticisms of Rational Choice Theory. Frank, Chapter 8; Papers by Camerer on
Blackboard
Production and Costs. Baye, Chapter 5
The Organization of the firm. Baye, Chapter 6; Papers by Jensen and Gibbons on
Blackboard;
The Nature of Industry. Baye, Chapter 7
Perfect competition, monopolistic competition and monopoly. Baye, Chapter 8
Oligopoly. Baye, Chapter 9
Game Theory. Baye, Chapter 10
Pricing strategies. Baye, Chapter 11
The Economics of Information. Baye, Chapter 12
Advanced Topics in Business Strategy. Baye, Chapter 13
The following table shows the weight of different assignments in your final grade.
Assignments
25%
Exam
75%
Examination
You will be given an exam according to a schedule to be determined by the university.
Weekly Study Guides
In the beginning of each week, look for a study guide for that week on my website.
Study Guides come in the form of PowerPoint Slides and they are designed to guide you
in your studying and keep you on track. They may also contain assignments that you must
complete and turn in on their due dates. So, make sure that you carefully read these study
guides on Monday of each week.
At the end of each week, look for classroom PowerPoint slides on my website.
Classroom PowerPoint
Slides