A syllabus for managerial economics class in 2014

1. ManEcon Syllabus
Dr. F. Raouf
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Goldey-Beacom College
Managerial Economics (ECO 642 YA)
Fatma Abdel-Raouf Fall II, 2014
General Information:
Text: (Optional)
Bruce Allen, K. Weigelt, N. Doherty, and E. Mansfield (2013). Managerial Economics: Theory, Application, and Cases. Eighth Edition. W. W. Norton. ISBN 978-0-393-91277-7.
Instructor:
Fatma Abdel-Raouf, Ph.D.
Professor of Economics and Finance
Office 2-A, Tel # (302) 225-6212
E-mail raouff@gbc.edu
Office Hours:
Monday and Wednesday 12:30 – 3:30 PM
Tuesday 12:00 noon – 2:00 PM
Thursday 12:00 noon – 2:00 PM and 3:30 – 4:30 PM
Online Hours Thursday 5:00 – 9:00 PM
Students are also welcome to stop by anytime or to make an appointment for another time.
Class Dates: 10/18/2014, 11/1/2014, 11/15/2014, and 11/22/2014
Makeup Class 12/6/2014
Course Description:
This course focuses on the application of economic principles and methodologies to the decision-making process of a profit-maximizing firm. This course establishes a foundation in theories of consumer behavior, market analysis, production and cost analysis. This course, then, uses this foundation to build students’ skills to apply economic tools in a variety of decision- making situations, including market analysis, product level and pricing.
Prerequisite:
BUS 598 (Quantitative Foundations and Business Applications) or equivalent.

2. ManEcon Syllabus
Dr. F. Raouf
Page 2 of 4
Course Objectives:
The objective of the course is to provide students with strong analytical foundations to relate economic theory, particularly microeconomics theory, to real world business applications and to the process of decision making. The implications of the theory will be applied to real world through case studies.
Upon successful completion of Managerial Economics, students should be able to:
1. Students will demonstrate a professional understanding of demand, supply, and market equilibrium with evaluation of demand elasticities and its application to the pricing policy.
2. Students will be able to analyze the theories of consumer behavior.
3. Students will show an understanding of the production process and the cost of production.
4. Students will show how to analyze the behavior of a profit-maximizing firm in different market structures.
5. Students will demonstrate how to evaluate and compare different pricing techniques.
6. Students will understand the effect of government intervention in business.
Method of Instruction:
The instructor is planning to conduct this course as follows:
 Lectures: Fully explain the materials covered with several real world examples to
clarify the materials.
 Exercises: Measures students’ understanding of the course content.
Course Requirements:
Midterm Exam (Saturday November 15, 2014)
Final Exam (Saturday November 22, 2014)
Assignments and Case Studies
Term Paper (Covers Government and Business, due on Tuesday November 25, 2014)
Method of Evaluation:
Midterm counts 30% of the grade.
Final counts 30% of the grade.
Assignments and case studies count 20% of the grade.
Term paper counts 20% of the grade. Option: Skip the paper and have 40% for the midterm and 40% for the final exam. Details are in the first class.
Note the Following:
● Date for the midterm is subject to change depending on the materials covered.
 Incomplete and makeup exams will be given in real emergency only.
● Cell phones ARENOT to be used during exams. They should be turned off and kept in your back bag. You can’t use your phone as a calculator in the exams. Bring calculator with you to the exams.

3. ManEcon Syllabus
Dr. F. Raouf
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 All assignments are to be submitted electronically via:
1. Campus Web (Coursework)
or
2. Email attachment
● All assignments are due by the end of the day Saturday following class meeting. Late assignments are penalized by taking one point off of the grade. Assignments are not accepted after the answer is already posted on Campus Web.
 Grade for the course is based on curving the total course grade for students at the end of the
semester. The grade distribution will then be compared to the College’s grading scale. The
student will be granted the higher of the two grades. Goldey-Beacom College grading scale is
A+ 95-100 B 80-84.9
A 90-94.9 C+ 75-79.9
B+ 85-89.9 C 70-74.9
 Students are expected to attend all classes, to be in class on time, to stay in class until the end of the class, not to interrupt the class in any way, and to participate in class discussion.
● This course is governed by the Academic Honor Code and the Respectful Learning Environment Policy of the College. Any violation of this policy will be penalized. The web site for the Academic Honor Code is http://www.gbc.edu/advisement/honorcode.html
Course Outline
I. Foundations of Managerial Economics October 18, 2014
1.1 Basic Process of Decision Making (Chapter 1)
1.2 Forms of Business Organizations Class Notes
1.3 Principal-Agent Problem (Chapter 1)
1.4 Demand and Supply Analysis (Chapter 1)
1.5 Price Controls (Chapter 1)
1.6 Optimization Techniques (Chapter 18)
II. Demand Theory October 18 – November 1st, 2014
2.1 Demand and Elasticity (Chapter 2)
2.1.1 Market Demand
2.1.2 Price Elasticity of Demand
2.1.3 Cross Elasticity of Demand
2.1.4 Income Elasticity of Demand
2.2 Consumer Behavior (Chapter 3)
2.2.1 Marginal Utility Theory
2.2.2 Indifference Curves Theory
Review for the Midterm November 1st, 2014
Midterm Exam November 15, 2014

4. ManEcon Syllabus
Dr. F. Raouf
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III. Production and Cost November 15, 2014
3.1 Production Theory (Chapter 5)
3.1.1 Law of Diminishing Marginal Returns
3.1.2 Optimal Combination of Inputs
3.1.3 Analyzing Managerial Decisions
3.2 Analysis of Cost (Chapter 6)
3.2.1 Average and Marginal Costs
3.2.2 Economies of Scale
3.2.3 Break-Even Analysis
IV. Market Structure, Strategic Behavior, and Pricing November 15 - 22, 2014
4.1 Perfect Competition, Monopoly, and Monopolistic
Competition (Chapters 7 and 8)
4.1.1 Perfect Competition
4.1.2 Monopoly
4.1.3 Monopolistic Competition
4.2 Oligopoly and Strategic Behavior (Chapter 11)
4.2.1 Collusive Agreements
4.2.2 Price Leadership
4.3 Pricing Techniques (Chapters 8, 9 and 10)
4.3.1 Cost-Plus Pricing
4.3.2 Pricing for Multi-product Firm
4.3.3 Price Discrimination
4.3.4 Transfer Pricing
4.4 Government and Business (Chapter 17)
4.4.1 Antitrust Policy
4.4.2 Patent Rules
Review for final exam November 22, 2014
Final Exam November 22, 2014