Syllabus
ECON 6313-001
Fall Semester, 2010
Course: Managerial Economics
Course Objectives: (1) To survey applications of economic theory and statistical tools to
managerial decision making; and (2) to gain proficiency in the use of software tools helpful in the
application of economic theory and statistical tools to decision making.
Professor:
Christopher Brown
412 Business
870-972-3737 (tel.)
870-972-3417 (fax)
crbrown@astate.edu (e-mail)
myweb.astate.edu/crbrown (web)
Office Hours: MTW, 1:30 to 3:00 p.m.
R, 10:30-12:00 a.m.
Texts:
William F. Samuelson and Stephen G. Marks. Managerial Economics, 6th edition. New
York: Wiley & Sons, 2009.
Note you may purchase a hardcover version of this text for $174.95 (ISBN: 978-0-470-28242-7) or
you may purchase the E-Book for $104.50.50 (ISBN: 978-0-470-47278-1). If you purchase the EBook you may print one copy. The Binder-Ready version is $113.95 (ISBN: 978-0-470-41827-7).
William F. Samuelson and Stephen G. Marks. Managerial Economics, Study Guide, 6th
edition. New York: Wiley Publishing, 2009.
The Study Guide is available in paper only for $42.95 (ISBN 978-0-470-42346-2).
The Study Guide is optional but it is recommended. Problems completed in the Study Guide will
not be graded. However, experience shows that work in the Study Guide is an excellent way to
master course material and prepare for examinations.
Web Site: You can visit to the course home page by browsing to
mywebs.astate.edu/crbrown/6313.htm. The course home page contains class announcements,
links to course materials (such as Power Point slides used during course lectures), and links to
articles or other materials relevant to the course.
Examinations, Homework, and Grades: Your grade will be determined on the basis of your
performance on three (3) examinations, four (4) homework assignments, and two (2) case study
exercises (see description below). Examinations will consist of essay questions and problems. The
Final Exam is NOT comprehensive. The various components have the following “point” values:
Item
Homework
Case Studies
Exam 1
Exam 2
Final Exam
Total
Points
40 (10 each)
30 (15 each)
100
100
130
400
The following scale will be applied to determine your final grade:
Points
Grade
352-400
A
300-351
B
240-299
C
200-239
D
Below 200
F
Case Study Exercises: The course requirements include two (2) group case study assignments. The
cases are:
‘Atlantic Computer: A Bundle of Pricing Options’, Harvard Business School (Brief)
Case, May 28, 2007.
‘Wal-Mart Stores: ‘Everyday Low Prices’ in China’, Harvard Business School Case,
September 11, 2006.
Students will be divided into teams. Each team will receive ONE (1) copy of the case. Your team
will need to designate one member as the “case handler.” This person will receive the case and
will be responsible for making the case available to other team members. The case is copyrighted
material. Copyright permission to print additional copies of the case for team members can be
obtained for $6.95 per copy at
Your grade on case study exercises depends on the grade received by your team. Your team grade
will has 2 components of equal weight:
1. The instructor will distribute a set of questions/issues pertaining to the case. Your team is to
submit a typed report of 2 to 3 pages addressing these issues/questions. The report should
well-organized, to-the-point, cogent and should make reference to the concrete facts of the
case where relevant. Rambling discussions will be disregarded.
2. The remaining ½ of your grade is based on the quality of the in-class discussion of the case by
your team.
Make-up Policy: Should a student be forced to miss an examination, the student should make
every effort to notify the professor in advance of the exam to be missed. If unable to contact the
professor (by phone or e-mail) prior to the exam, the student should contact the professor as
soon as possible. Presuming the student has made a good faith effort to notify the instructor, and
if the student can present a credible excuse for his or her absence, then a make-up exam will be
arranged.
Schedule of Course Topics, Reading Assignments, and Exams
Date
Topic
Reading Assignment
Aug 26
Introduction to economic
decision making
Optimal decisions using
marginal analysis
Calculus and optimization techniques;
optimization using spreadsheets
Demand analysis and optimal pricing
EXAM 1
Estimating demand using
regression analysis
Problems with regression;
regression using spreadsheets
Components of a time series;
forecasting with time series data1
EXAM 2
Costs of production; economies
of scale and scope
Decision making under uncertainty
The value of information2
Competition, Monopoly;
and Oligopoly
Case Study3
Final Examination 4
Chapter 1
Sept 2
Sept 9
Sept 16
Sept 23
Sept 30
Oct 7
Oct 14
Oct 21
Oct 28
Nov 4
Nov 11
Nov 18
Dec 2
Dec 13
Chapter 2
Appendices 1, 2 to
Chapter 2
Chapter 3
Chapter 4, pp. 123-140
Appendix to Chapter 4
Chapter 4, pp. 140-170
Chapter 6
Chapters 12
Chapter 13
Chapter 7, Chapter 8 and
Chapter 9, pp. 326-348.
There will be an in-class forecasting exercise on this date.
There will be an in-class case study exercise on this date (“Atlantic Computer”).
3 There will be an in-class case study exercise on this date (“Wal-Mart in China”).
4 12:30-2:30 p.m.
1
2