Louisiana Tech University
Econ 510: Managerial Economics Syllabus
Spring 2016
Professor:
Office:
Office Hours:
Dr. Menuka Karki
COBB 331
Monday, Wednesday and Friday:
Phone:
Email:
Class time:
Classroom:
257–2917
[email protected] (email is the best way to contact me)
Monday, Wednesday 2:00 – 3:50 PM
COBB 106 (College of Business Building)
8:00 – 9:30 AM
11:00 – 11:50 AM
1:00 – 2:00 PM
Or by appointment
REQUIRED TEXT: Managerial Economics and Business Strategy by Michael R. Baye and
Jeffrey T. Prince, 8th Edition
COURSE DESCRIPTION: Applications of microeconomic theory to business policies and
decisions. The utilization of analytical and decision-making tools derived mainly from economic
theory, quantitative methods, and marketing theory. Topics considered include pricing practices
and market structures, investment decision-making, and estimation of demand and cost of
production.
Students are expected to know basic Economics and college algebra. The course material
emphasizes use of graphical methods to illustrate concepts, and it is expected that the students
are acquainted with simple two-dimensional graphs.
COURSE OBJECTIVES: By the end of this course, a successful student will:
• Be able to apply analytical methods and economic principles to study and analyze real world
situations and business practices.
• Know how to use game theoretic concepts that are useful not only in Economics, but in many
other disciplines and areas.
• Improve analytical and quantitative skills that you can use beyond this course, during the rest of
your studies at Louisiana Tech University and later in your future career.
Students will also develop an understanding of the following principles and how they
apply to managerial decision-making
• Compute the relevant costs of any decision.
• Use marginal analysis to make extent (how much) decisions.
• Make investment decisions that increase firm value.
• Set optimal prices.
• Predict industry-level changes using demand/supply analysis.
• Develop long-run strategies to increase firm value.
COMMUNICATION: Most announcements will be done through Moodle announcement. I will
also announce the upcoming assignments and due dates at the beginning of class. However, I
strongly recommend you to check Moodle in regular basis for important announcements. Also,
check class schedule in page 4. To communicate with me, you can see me during my office
hours or you can send me an email to schedule an appointment.
CLASS POLICY AND PROCEDURE
Disruptive behavior: I expect you to be attentive and interactive in class. I expect you to
respect others around you and not disrupt others with any kind of behavior like talking, texting,
surfing internet etc. I strongly suggest you take notes while you are in class. It will help you do
well in your exams. Past classes have shown that final grades closely resemble the amount of
effort put forth in note taking and studying.
Reading: It is very important to read the chapters before you come to class. Class schedule sheet
outlines the courses covered on specific date which gives you information about which chapter to
read before you come to class.
Academic honor code: Students are expected to read, understand and adhere to the Louisiana
Tech Academic Honor Code, found at https://www.latech.edu/documents/honor-code.pdf.
Failure to follow the honor code may result in a failing grade for the course or, in some
instances, expulsion from the university.
Accessibility Services: Qualified students with disabilities needing appropriate academic
adjustments should speak with me as soon as possible to ensure their needs are met in a timely
manner.
Emergency Notification System: All Louisiana Tech students are strongly encouraged to enroll
and update their contact information in the Emergency Notification System. Here is the link:
http://www.latech.edu/administration/ens.php. It takes just a few seconds to ensure you’re able to
receive important text and voice alerts in the event of a campus emergency.
Emergency and Disaster Plan: If an emergency or disaster results in a campus closure, you
should refer to Moodle within 36 hours for information on how to proceed with this course. I will
provide information concerning how exams, class discussions, and Homeworks will be
conducted remotely.
Drop Date: The last day to drop with a grade of W is April 29, 2016.
Changes to this syllabus: Any component of this syllabus is subject to change at the discretion
of the professor. Changes will be announced in a timely manner during class and announced on
Moodle before any change takes effect. Whenever this is necessary, an addendum to the syllabus
will be made available on Moodle.
GRADING POLICY (subject to change) There are four components to the grades:
Component
Homework
Exam 1
Exam 2
Market Analysis Paper
Weight (%)
33
20
20
20
Paper Presentation
7
HOMEWORK (33% i.e., 11% per HW): There will be 3 homework assignments given
throughout the semester. The homework will be available on Moodle and the due dates of each
homework are given in class schedule sheet in page 4. No late work will be accepted.
IN-CLASS EXAMS (40% i.e., 20% per Exam): There will be 2 in-class exams, a midterm and a
final. The midterm and final exam dates are given in class schedule sheet in page 4. The final
will NOT be cumulative. If you miss any exam, then your points are lost and you cannot
recover them.
MARKET ANALYSIS PAPER AND PRESENTATION (20% for Paper and 7% for
presentation): I will set up seven groups in class, and each group will be required to write a paper
about a firm (i.e. Apple, Amazon, BMW, Tesla etc.). The paper will require some research into
the number of firms in the market, substitutes and complements, evidence of changes in supply
and demand and their effect on equilibrium, and to make a qualitative estimate of the elasticities
in that market etc. This will be a five to seven page paper with all the usual expectations in terms
of expository form and content. Each group will submit a proposed topic, one draft, and a final
version as required in the schedule and give 15 minute presentation about their analysis. Specific
requirements will be discussed during the semester.
You will be given a chance to review your group members’ contribution to the projects
during the last class (This may count toward each individual’s Market Analysis and Presentation
score.). I would encourage you to actively manage this process. You should decide on an
appropriate division of duties during the projects (and homework) and solicit input from your
group members as the term progresses. Open communication with your group members will
minimize the chances of a negative surprise at the end of the course.
You should communicate about the makeup with a university excuse immediately and
before the exam as far as possible. No makeups will be administered after the final exam
time (i. e., Exam 3).
LETTER GRADE CALCULATION
A
90 or above
B
80 – 89%
C
70 – 79%
D
60 – 69%
F
Less than 60%
Grades will be posted on BOSS. All grades are rounded up or down to the nearest point. No
negotiations of rounding will be entertained.
Week(day)
Week 1
March 9(W)
March 11(F)
Week 2
March 14(M)
March 16(W)
March 17(TH)
March 18(F)
Week 3
March 21(M)
March 23(W)
March 24(TH)
March 25(F)
Week 4
March 28(M)
March 30(W)
March 31(TH)
April 1(F)
Week 5
April 4(M)
April 6(W)
April 7(TH)
April 8(F)
Week 6
April 11(M)
April 13(W)
April 14(TH)
April 15(F)
Week 7
April 18(M)
April 20(W)
April 21(TH)
April 22(F)
Week 8
April 25(M)
April 27(W)
April 28(TH)
April 29(F)
Week 9
May 2(M)
May 4 (W)
May 5(TH)
May 6(F)
Week 10
May 9(M)
May 11(W)
May 12(TH)
May 13(F)
Week 11
May 16(M)
May 18(W)
Class Schedule for Econ 510, Spring 2016
Lecture Topics (and Exams)
HW and Paper Due Dates
Campus close due to Weather, No Class
Campus close due to Weather, No Class
Ch 1: The Fundamentals of Managerial Economics
Ch 2: Market Forces: Demand and Supply
Ch 2: Market Forces: Demand and Supply
Ch 3: Quantitative Demand Analysis
Ch 3: Quantitative Demand Analysis
Ch 4: The Theory of Individual Behavior
Easter Holiday - No Class
Easter Holiday - No Class
Ch 4: The Theory of Individual Behavior
Ch 5: The Production Process and Costs
Exam 1[Ch 1,2,3,4,5]
Ch 5: The Production Process and Costs
Ch 6: The Organization of the Firm
Ch 6+ Ch 7: The Nature of Industry
HW#1 Due
Submit Market Analysis Paper Topic
Ch 7: The Nature of Industry
Ch 8: Managing in Competitive, Monopolistic..
Ch 8: Managing in Competitive, Monopolistic..
Ch 9: Basic Oligopoly Models
Ch 9+ Ch 10: Game Theory
HW#2 Due
Ch 10: Game Theory
Ch 11: Pricing Strategies for Firms
Ch 11: Pricing Strategies for Firms
Market Analysis Paper Draft Due
Ch 13: Chapter 13 – Advanced Topics in Business Strategy
Ch 13: Chapter 13 – Advanced Topics in Business Strategy
Exam #2 [Ch 7,8,9,23,24,25]
HW#3 Due
Chapter 14 – A Manager’s Guide to Government in the Marketplace
Chapter 14 – A Manager’s Guide to Government in the Marketplace
Class Discussion on some case studies
Class Discussion on some case studies
Market Analysis Paper Presentation
Market Analysis Paper Presentation
Market Analysis Paper (Final) Due