TROY UNIVERSITY
MASTER SYLLABUS
SORRELL COLLEGE OF BUSINESS
ECO 6655
Managerial Economics
Prerequisites
BUS 5503 and BUS 5505 or Principles of Microeconomics and Statistics or equivalents.
Description
A study of the decision-making process of business firms in the resource allocation process. Both
the functioning of markets and the decisions of firms in a variety of market structures are
considered. Various theories of the firm are used to study the optimal decision-making rules for
business firms under conditions of uncertainty.
Objectives
On completion of the course, the student should be able to:
1. Apply microeconomic models to real-world managerial problems using basic calculus
techniques, as well as statistics and/or linear programming as appropriate. Use function
maximization, minimization, and optimization to determine optimal price and production
levels for a firm.
2. Synthesize price theory, optimization, and elasticity concepts to solve managerial problems
within the four market structures.
3. Apply demand theory and estimation to managerial decision-making.
4. Apply cost theory and estimation to product pricing and production levels.
5. Demonstrate familiarity with the literature on microeconomics.
6. Explain the concept, applications, and implications of competitive advantage, including the
importance of aligning core products with core competencies and core values.
Purpose
To provide strong familiarity with the theories and quantitative techniques of managerial
economics, i.e., applied microeconomic analysis. In particular, these theories and techniques will
be used to show how optimal economic solutions are reached by managers who operate firms in
various market environments. The aspects of economics which are relevant to the managerial
decision-making processes are stressed. The basic techniques of calculus will be applied when
solving various problems.
Master Syllabi are developed by the senior faculty in each business discipline. This Master Syllabus must be used as the basis for developing the
instructor syllabus for this course, which must also comply with the content specifications outlined in the Troy University Faculty Handbook.
The objectives included on this Master Syllabus must be included among the objectives on the instructor’s syllabus, which may expand upon the
same as the instructor sees fit. The statement of purpose seeks to position the course properly within the curriculum and should be consulted by
faculty as a source of advisement guidance. Specific choice of text and other details are further subject to Program Coordinator guidance.
19 April 2011
Master Syllabus: ECO 6655 (Revised August 2013)
2
Approved Texts
Baye, M. & Prince, J. (current). Managerial Economics and Business Strategy. McGraw Hill.
Farnham, P. (current). Economics for Managers. Prentice Hall.
Hirschey, M. (current). Managerial Economics. South-Western/Cengage Learning.
Keat, P. & Young, P. (current). Managerial Economics. Prentice Hall.
Truett, L. & Truett, D. (current). Managerial Economics. Wiley.
Recommended Optional
SPSS Version 15 (Student Version). (8th ed.) McGraw Hill/Irwin – SPSS Inc. ISBN-13:
9780077223519
Supplements
As deemed appropriate.
Sorrell College of Business Mission and Vision statements
Mission Statement
Through operations that span the State of Alabama, the United States, and the world, Sorrell
College of Business equips our students with the knowledge, skills, abilities and competencies to
become organizational and community leaders who make a difference in the global village and
global economy. Through this endeavor, we serve students, employers, faculty, and Troy
University at large as well as the local and global communities.
Vision Statement
Sorrell College of Business will be the first choice for higher business education students in
their quest to succeed in a dynamic and global economy. Sorrell College of Business will create
the model for 21st century business education and community service.
Troy University Faculty Handbook (2010): Section 3.9.2.8 [extract] — essential elements of the syllabus (somewhat modified for space):
1. Course title
2. Course number +
section
3. Term
4. Instructor
5. Prerequisites
6. Office hours
7. Class days, times
8. Classroom
location
9. Office location +
e-mail address
10. Office telephone
11. Course
description,
objectives
12. Text(s)
13. Other materials
14. Grading methods, 16. General supports
criterion weights,
(computer works,
make-up policy,
writing center)
mid-term grade
17. Daily assignments,
reports
holidays, add/drop
15. Procedure, course
& open dates, dead
requirements
day, final exam
18. ADA statement
19. Electronic device
statement
20. Additional
services,
statements
21. Absence policy
22. Incomplete-work
policy
23. Cheating policy
24. Specialization
requirements
(certification,
licensure, teacher
competencies)