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