MANAGERIAL ECONOMICS
2014
Syllabus
Instructor: To Trung Thanh, Assoc. PhD
E-mail: [email protected]
Cell phone: 0942 399 337
COURSE DESCRIPTION:
Businesses face important decisions every day and it is the job of managers to choose among the
options available for a certain goals of the firm. Managerial economics is a collection of concepts and
methods that help managers make these decisions. In fact, success sometimes depends upon luck, but
thinking like an economist will often allow you take full advantage of lucky opportunities and minimize
the effect of bad luck. Creative ideas are also a key to success, yet they are necessary but not sufficient.
Again thinking like an economist will allow you to capitalize on creativity.
There are many questions that so importantly affect firms. Should we enter a new line of work or
introduce a new product or service? How should we price our products? Can we charge different prices
to different customers? Why? How? Should we close the production or suffer losses? All these decisions
affect the profitability of the firm and hence its ability to grow and survive. By the end of this course,
you will be familiar with the basic tools of managerial economics and be able to apply them to questions
like those just mentioned.
COURSE OBJECTIVES:
The purpose of this course is to provide students with a basic understanding of the economic
theory and analytical tools that can be used in decision making problems. Students who successfully
complete the course will 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.
Although the context of real-life cases used in the course is largely not in Vietnam, students will
be able to build and develop their capability to link with and solve for cases in the Vietnamese business
context.
PREREQUISITES:
Microeconomics, Mathematics for Economics and Business, Business Statistics and Foundations
of Management.
COURSE MATERIALS:
Required Textbook:
1) Samuelson W. F. and S. G. Marks (2010) Managerial Economics, 6th edition (ISV), Wiley.
Recommended readings:
1) Paul G. Keat and Philip K.Y.Young (2006): Managerial Economics: Economic Tools for
Today’s Decision Makers (3rd Edition).
2) Harrison E. F. (1999) The Managerial Decision-Making Process, Houghton Mifflin Company,
Massachusetts.
3) Michaels R.J. (2011) Transactions and Strategies: Economics of Management, SouthWestern CENGAGE Learning.
Although it is very likely that we will not have enough time to go through these books, they will
be provided on demand if you have the courage and desire to strengthen your knowledge.
Other readings:
Other reading materials such as news articles, professional and academic papers… will be
provided if applicable.
GRADING POLICY:
The final grade in this course will be determined according to the following weights:
Individual performance
Group presentation
Mid-tem exam
Final exam
10%
20%
20%
50%
COURSE SCHEDULE:
IV. Course Structure

Introduction and Firm Decision Making

Demand Analysis

Theory and Estimation of Production

Theory and Estimation of Cost
2

Pricing Decision in Market Structures

Strategic Interactions - Game Theory
V. Course Calendar and Readings
Session
Topic
Reading
1
Introduction & Firm Decision Making
Chapters 1 & 2
2
Demand Analysis (Elasticity)
Chapter 3
3
Revision, Cases and Exercises
4
Presentation: Estimating Demand
5
Theory and Estimation of Production
Chapter 5
6
Theory and Estimation of Cost
Chapter 6
7
Pricing Decision in Market Structures
Chapter 7+8+9
8
Pricing Decision in Market Structures
Chapter 7+8+9
9
Revision and Exercises
10
Mid-term exam
11
Strategic Interactions - Game Theory
12
Revision and Exercises
13
Final Group Presentation
Chapter 10
3
ATTENDANCE POLICY:
Students are required to attend classes regularly and actively participate in all classroom
activities. All class assignments must be completed on indicated time. Make-up exams are given only
when a student misses an exam as a result of a professionally diagnosed and treated illness and other
verified extenuating circumstances. Make-up exams may or may not have the same format as the
scheduled tests.
CELL PHONE AND LAPTOP NOTICE:
These devices are strictly prohibited for being operational during the class unless otherwise
indicated by the instructor.
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