Syllabus

Course Number: ECO 6150 Course Title: Managerial Economics Program: Master in Business Administration Pre- requisites: ECO 340 and ECO 3501 or BUS 5213 Professor: Class Information: Contact Information: Required Text: Managerial Economics and Business Strategy, 7th Edition Michael R. Baye McGraw Hill Publishing, 2010, ISBN: 0073375969 A textbook is required for this course. All materials for this course can be found in the textbook and Internet site for this course. Other Course Materials: Web site for Managerial Economics and Business Strategy at http://highered.mcgrawhill.com/sites/0073375969/student_view0/index.html provides a host of information for students, including PowerPoint presentations, flash cards with key terms for each chapter. Course Description This course focuses on the problem of business decisions, making extensive use of cases. Topics include basic supply-demand theory and marginal analysis, the structure of decision problems, the impact of the market setting (i.e., competitive, oligopolistic or monopolistic structures) and strategic interactions among firms using Game Theory. The emphasis throughout is on the use of economic reasoning to solve actual business decision problems. (3 credit hours) (45 contact hours) Goals The intention of this course is to introduce to you a wide variety of problems faced by managers. Faced with these problems, you will be given the opportunity to develop strategies and tools for solving the problems, including computer solutions, used by managers every day. Managers, the decision makers in firms, determine their pricing strategy, who to hire and fire, how to reward workers, and how to motivate workers. Managers must also solve logistical problems such as how to distribute their goods for sale, how to minimize the cost of producing a given production target, how much inventory to hold, where and how to spend advertising dollars, whether or not to expand the firm with more factory lines or more factories, and how to optimally

search the market place for new ideas/technologies or competitors' prices. Firm owners must also decide how to reward their managers In addition, this course will attempt to: Show how students who successfully complete the course have a good understanding of economic concepts and tools that have direct managerial applications. The course will sharpen their analytical skills through integrating their knowledge of the economic theory with decision making techniques. Students will learn to use economic models to isolate the relevant elements of a managerial problem, identify their relationships, and formulate them into a managerial model to which decision making tools can be applied. Student Learning Objectives At the completion of this course students will be able to: Justify how incentives affect behavior Illustrate the application of elasticity to managerial decision making Integrate marginal analysis to the decision making process Clarify how transactions cost affect the buy/sell decision Determine how prices are determined and different pricing strategies. Specify the role of public policy in the economy Point out the efficiency of perfectly competitive markets, sufficient conditions for efficiency, and the problem of market failure 8. Analyze firm behavior using the principles of strategic interaction among firms 9. Utilize organizational architecture to analyze and explain firm behavior Course Methodology Class periods will comprise a variety of the following techniques: reading textbook, research, case studies, current issues, discussions, etc. Course Assignments This course is divided into 8 weeks. Weeks may include the following assignments: Self-test and practice problems in the CD ROM or at the end of each chapter in the textbook. Web-exercises (textbook publisher website, if available) Tests (problems, and short essays) Discussion questions (short essays) Case studies Research project Weekly Out of Class Assignments There will be a mid-term and final exam encompassing the material covered in the course. The final exam will encompass a comprehensive review of the course materials (problems and short essay format) For case studies, the write-up must at least address the following: What are the main problems or issues of the case? What attempts were made to resolve the issues? (note, there may be multiple issues) What alternatives have been attempted to resolve the problems or issues? If unsuccessful what further recommendations can be made to resolve the issues? 1. 2. 3. 4. 5. 6. 7.

Discuss the relevance of the issues raised in the case to real life business problems and applications Other questions raised by the instructor

Course participation for this course is essential to enable the student to apply the knowledge and skills listed in the course learning objectives. Threaded Discussions/Forums Students are encouraged to critically discuss issues related to the learning activities of the class (small and large group online or via chat sessions, discussions, study questions, and reflective writing assignments). Technical Requirements Students are required to have a computer, e-mail and Internet access to enroll in this course. Course Schedule The course calendar is located on the course website. For the on- ground and on-line students this is an eight week course where you are expected to cover one week per week. Homework Assigned discussion questions from the textbook material. Scored on completeness and applied learning Attendance Students are encouraged to participate in the required discussions and forums. Semester Credit Hour Definition and Clock Hour Conversion California Miramar University measures its programs in semester credit hours. A clock hour is equal to a minimum of 50 minutes of instruction. Credit for academic and financial aid purposes is measured in semester credit hours. A semester credit hour for credit hour courses and programs is equivalent to a minimum of 15 clock hours of lecture 30 clock hours of laboratory, 45 clock hours of externship/practicum, or a combination of these three. These definitions also assume appropriate out-of-class learning activities to support the credit awarded for courses. Federal regulations for the allocation of student financial assistance for credit hour courses and programs establish an expectation of two-hours of out-of-class work for each hour of lecture or direct instruction for which credit is awarded. This means for a 3 semester credit course with 45 clock hours of lecture, students will be expected to spend 90 hours of out-of-class learning activities. Time Management The average student should anticipate minimum of 45 hours of contact work (5 1/5 6 hours per week) using the online course platform (Moodle) coupled with 90 hours (11 1/2 -12 hours per week) of outside preparation for one eight weeks course.
8 Discussion board assignments, 3 Case study assignments, End of the chapters questions/problems Mid-term exam 9 hours of online activity, and 16 hours of out of class learning activity 11 hours of online activity, and 15 hours of out of class learning activity 10 hours of online activity, and 25 hours of out of class learning activity 0 14 hours of out of class learning activity

1 Individual paper assignment, Final Exam Total hours

15 hours of online activity, and 16 hours of out of class learning activity 0 14 hours of out of class learning activity 45 100

Written Assignments/Case Studies All written work is to be concise, clear, organized, and well supported in a professional manner for the issues under consideration. Students are required to identifying the underlying causes of the problem/issues, the theory underlying the problem/issues/cases and a welldefended solution. The write-up shows originality in the details and is comprehensive in format. Refer to the Weekly Assignments table for Out of Class Assignments for each week. Assessment Rubric for Case Analysis Content/Points 80-90 Points Students show the ability to see interrelationships of facts. Has the capacity to make sound decisions and provides the oral and writing skills to effectively communicate those decisions. Has the ability to recognize that there may be numerous effective ways to dealing with issues and acknowledges and listens to other peoples opinions. And understands that there are many perspectives to an issue 70-80 Points Students show some ability to see interrelationships of facts. Somewhat has the capacity to make sound decisions and provides the oral and writing skills to effectively communicate those decisions. Somewhat has the ability to recognize that there may be numerous effective ways to dealing with issues and acknowledges and listens to other peoples opinions. And Somewhat understands that there are many perspectives to an issue Below 70 points A student does not show some ability to see interrelationships of facts. Does not have the capacity to make sound decisions and provides the oral and writing skills to effectively communicate those decisions. Does not have the ability to recognize that there may be numerous effective ways to dealing with issues and acknowledges and listens to other peoples opinions. And cannot understand that there are many perspectives to an issue

Case Analysis Process

Analysis and Preparation

The student first reads the case quickly to see what is going on, and then reviews the exhibits. Once this is completed, the student reads the preparation questions to help focus intent of the case. Then, then the student thoroughly

The student reads the case and quickly answers the questions.

The student answers the questions without reading the case thoroughly. Skims the case and attempts to find the answers to the questions without clear, thoughtful analysis.

re-reads the case to analyze all available information.

Evaluation, Decision Making, and Synthesis

The student succinctly states the problem(s), identifies key players and decision maker(s), denote relevant facts, data, and rationale. Then, the student determines feasible alternative actions or programs, evaluate the alternatives, and finally and most importantly, make a decision.

The student somewhat succinctly states the problem(s), identifies key players and decision maker(s), denote relevant facts, data, and rationale. Then, the student somewhat determines feasible alternative actions or programs, evaluate the alternatives, and finally and most importantly, makes a decision.

The student does not succinctly state the problem(s), identify key players and decision maker(s), and denote relevant facts, data, and rationale. Then, the student does not determine feasible alternative actions or programs, evaluate the alternatives, and finally and most importantly, make a decision.

Threaded Discussions Learning is strongly enhanced through social construction. This means that as we share our experiences, points of view, and understandings of the course content, other members of our class can use this sharing to build or construct their own knowing. For social construction to be of benefit to all class members, it is essential that all class members contribute. Contribution is the addition of meaningful information that is relevant to the topic being discussed and shows critical thinking in terms of analysis, synthesis, and the ability to distinguish between facts and opinions. Active participation in your courses is an opportunity to demonstrate critical thinking regarding the course subject matter. Students are expected to read the materials assigned and incorporate the learning into all discussions. Normally, discussion sessions are conducted by one student posting his, or her, view of the issues under consideration. You may make a 3-4 paragraph (or more if you like) posting to each question, although the amount of write-up for discussion is up to you. Each paragraph could be a few lines, or up to a page or more, as long as the points you make have substance, logic, meaning, add new insights, are integrative, and comprehensive. Responses should also follow a process similar to posting discussions (3 4 paragraphs, or as appropriate). Note: One or two-line responses of just agreeing or disagreeing with someone (or everyone) is considered an inadequate response, unless substantiated with substance and logic. When you make a statement the instructor will ask the question, "So what?" The student then has to state his/her rationale as to why that statement was made, as well as show supporting evidence to justify that statement. Participation in Threaded Discussions

Students will be graded for their online participation on the universitys LMS. Students will be asked to respond not only to the postings by the instructor but also to the postings of their peers. Specific expectations are: Each student will be expected to respond to the postings by the instructor according to the instructions given Each student may start discussion threads concerning topics relevant to the discussion for the week. Students can attach articles, websites, etc from reputable sources that relate to the posts Each student is required to lead and facilitate his or her own postings as well as respond to at least two posts from the other students. Assessment Rubric for the Threaded Discussion Assignments Content/Points 15-20 Points Students response to Critical issues under consideration Thinking was rich in content, full of thought, insight, and analysis. The student displayed clear Connections connections to previous and current knowledge of the subject matter and related topics to real-life scenarios. The student made all Timeliness required posting, early in the discussion, and throughout the discussion. In addition, the student responded to at least one other students work with a thorough and critical analysis. 10-15 Points Student provided substantial information and thought, insight, and analysis has taken place. Less than 10 points Student provided rudimentary and superficial information. No analysis or insight is displayed. The students displayed The student did not some ideas and connections make adequate but lacked depth and/or connections and was detail. off the topic. The student made all required postings. Some not in time for others to read and respond. Occasional responses were made to others and in some instances they were late and may not even have been viewed by the students. The student had some or all required postings missing. Responses were ineffective and in most cases where not read by other students due to lateness.

Rubric the instructor will use when grading the research paper Content/Points 95-110 The student was able to Substance of write a paper that the research conforms to the overall project subject of the course, develops major aspects of the central ideas of his or her assignment, and has academically written with application to an actual administrative environment when Less than 80 To some extent, the Student was unable to student was able to write a write a paper that paper that conforms to the conforms to the overall overall subject of the subject of the course, course, develops major develops major aspects aspects of the central of the central ideas of his ideas of his or her or her assignment, and assignment, and has has academically written academically written with with application to an application to an actual actual administrative administrative environment environment when
80-95

appropriate. The student writes clearly and complies with the instructions of the Organization assignment. The of the Applied structure and pattern of project the paper is coherent and each paragraph is developed carefully. Transitions from one idea to another are presented logically. The student was able to write sentences that flow smoothly. Topics are Mechanics of organized using writing paragraphs. The sentence of the beginning of each paragraph correlates with the last sentence in the paragraph. Punctuation and spelling errors are rare.

when appropriate. Student has some difficulty writing clearly and following the instructions of the assignment. The structure and pattern of the paper is somewhat coherent and each paragraph is somewhat developed. Transitions from one idea to another are not logically presented. The student was partially able to write sentences that flow smoothly. Topics were somewhat presented in an organized manner using paragraphs. The sentence of the beginning of each paragraph partially correlates with the last sentence in the paragraph. Punctuation and spelling errors are somewhat common. The student partially presented statements that are accurate and opinions are somewhat supported. Some quotes are supported in the reference section and some references have quotes in the body of the termpaper. The paper reflects a somewhat appropriate level of critical analysis. Sources of research are somewhat identified and documented using APA style.

Evidence of research

The student presented statements that are accurate and opinions are adequately supported. All quotes are supported in the reference section and all references have quotes in the body of the paper. The term-paper reflects an appropriate level of critical analysis. Sources of research are properly identified and documented appropriately using APA style.

appropriate. Student was unable to write clearly and following the instructions of the assignment. The structure and pattern of the paper is somewhat coherent and each paragraph is somewhat developed. Transitions from one idea to another are not logically presented. The student was unable to write sentences that flow smoothly. Topics were not presented in an organized manner using paragraphs. The sentence of the beginning of each paragraph did not correlate with the last sentence in the paragraph. Punctuation and spelling errors are common. The student was unable to present statements that are accurate and opinions are not supported. Quotes are not supported in the reference section and references do not have quotes in the body of the term-paper. The paper reflects an inappropriate level of critical analysis. Sources of research are not identified and documented using APA style

Length of paper

Student was able to meet or exceed the required minimum for the paper. Proper title, student name, course name and number, date, and professor information was stated clearly on the first page of the term-paper. Pages were all numbered.

Student was partially able to meet the required minimum for the paper. Proper title, student name, course name and number, date, and professor information was partially stated clearly on the first page of the paper. Pages somewhat numbered

Student was not able to meet the required minimum for the paper. Proper title, student name, course name and number, date, and professor information was not stated clearly on the first page of the paper. Pages not numbered

Grading and Evaluation Students will be evaluated on the basis of Class Participation, Individual paper/project (will be provided by your instructor) and Assignments relating to case studies/chapters. The individual Paper/project is expected to be 10-12 pages long and will be due in the eight week. The topic should be related to the issues of the course. Grading Criteria Final grade will be based on following: Course requirement Points 8 Posting and participation in the online discussion board worth 20 points each 160 16% 8 Weekly out of class assignments (20 points for each week assignments) 160 16% 3 Case Studies worth 90 points each 270 27% 1 Mid-term exam 150 15% 1 Individual Term Paper/research project worth 110 points 110 11% 1 Comprehensive Final Exam worth 150 points 150 15% TOTAL 1000 100%

Grading Scale Grade A AB+ B BC+ Score 100-95 90-94.9 87-88.9 84-86.9 80-83.9 77-79.9 Grade C CD+ D F Score 74-76.9 70-73.9 67-69.9 64-66.9 64 and below

Academic Policies Academic Dishonesty/Plagiarism: In an effort to foster a spirit of honesty and integrity during the learning process, California Miramar University requires that the submission of all course

assignments represent the original work produced by that student. All sources must be documented through normal scholarly references/citations and all work must be submitted using the Publication Manual of the American Psychological Association 6th Edition (2010). Washington DC: American Psychological Association (APA) format. Please refer to Appendix A in the Publication Manual of the American Psychological Association, 6th Edition for thesis and paper format. Students are encouraged to purchase this manual (required in some courses) and become familiar with its content as well as consult the California Miramar University catalog for further information regarding academic dishonesty and plagiarism. Americans with Disabilities Act Policy It is the policy of California Miramar University to make reasonable accommodations for qualified students with disabilities, in accordance with the Americans with Disabilities Act (ADA). If a student with disabilities needs accommodations, the student must notify the Director of Student Services. Procedures for documenting student disability and the development of reasonable accommodations will be provided to the student upon request. Students will be notified by the Director of Student Services when each request for accommodation is approved or denied in writing via a designated form. To receive accommodation in class, it is the students responsibility to present the form (at his or her discretion) to the instructor. In an effort to protect student privacy, the Department of Student Services will not discuss the accommodation needs of any student with instructors. Faculty may not make accommodations for individuals who have not been approved in this manner.

Topical Outline Lesson Chapter 1 1

Chapter Topic The Fundamentals of Managerial Economics Market Forces: Demand and Supply Quantitative Demand Analysis

Skills Acquired The economics of effective management Demand, Supply, and Market Equilibrium Elasticity and Regression

2 3

4 5

The Theory of Individual Behavior The Production Process and Costs Case Study #1 Research Project Proposal is due The Organization of the Firm The Nature of Industry Mid-term Exam Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets Case Study #2 Basic Oligopoly Models Game Theory: Inside Oligopoly Pricing Strategies for Firms with Market Power

Consumer behavior analysis The Production, Cost, and Multiple-Output Cost functions

7 5 8

Transaction costs, input procurement, and the PrincipalAgent problem Market structure, conduct, and performance Differences between perfect competition, monopolies, and monopolistic competition

9 6 10 11

Profit maximization and different oligopoly models One-shot, multistage, finite, and infinitely repeated games Pricing strategies that account for greater profits, and different costs, demands, and competition Uncertainty and issues pertaining to the firm and the market Limit pricing, price discrimination, and penetration pricing to overcome network effects Market failure, government policy, and international markets

12

13

The Economics of Information Case Study #3 Advanced Topics in Business Strategy

14

A Managers Guide to Government in the Marketplace Final Exam Research Project is due Weekly Assignments

Week 1

Assignment 1. Read Chapter 1 2. Out of class graded assignments: Answer end of chapter study questions/problems 2 and 3 from chapter 1 1. Read Chapter 2 and 3 2. Out of class graded assignments: Do problem 4 from chapter 2

Due date End of the week 1

End of the week 2

Do problem 6 from chapter 3

1. Read Chapter 4 and 5 2. Out of class graded assignments: Do problem 2 from chapter 4 Do problem 6 from chapter 5 3. Case study #1 4. Research proposal is due 1. Read Chapter 6 and 7 2. Out of class graded assignments: Do problem 9 from chapter 6 Do problem 2 from chapter 7 3. Complete Mid-term Exam 1. Read Chapter 8 and 9 2. Out of class graded assignments: Do problem 4 from chapter 8 Do problem 7 from chapter 9 3. Case Study #2 1. Read Chapter 10 and 11 2. Out of class graded assignments: Do problem 3 from chapter 10 Do problem 2 from chapter 11 1. Read Chapter 12 and 13 2. Out of class graded assignments: Do problem 4 from chapter 12 Do problem 7 from chapter 13 3. Case Study #3 1. Read Chapter 14 2. Out of class graded assignments: Do problem 6 from chapter 14 3. Complete the Final Exam 4. Research Paper is due

End of the week 3

End of the week 4

End of the week 5

End of the week 6

End of the week 7

End of the week 8