MBA 531

Managerial Economics

Fall 2003

Instructor: S. Atri

Office: 431A, Mahar

E-mail: atri@oswego.edu

URL: http://www.oswego.edu/~atri/

Office Hours: Tuesday and Thursday - 4:00- 5:00

Wednesday - 2:00 - 3:30 (and by appointment)

methodology to managerial decision making problems within various organizational settings such as

a firm or a government agency. The emphasis in this course will be on demand analysis and

estimation, production and cost analysis under different market conditions, forecasting and decision

making under uncertainty. Students taking this course are expected to have had some exposure to

economics and be comfortable with basic algebra. Some knowledge of calculus would also be

helpful although not necessary.

- Project 20%
- Midterm exam 25%
- Other assignments 20%
- Final exam 35%

making requires timely and efficient use of information. 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. Among the topics covered in the course are: price determination in alternative market structures, demand theory, production and cost functions, and decision making under uncertainty. In addition, the course will provide a basic introduction to econometric analysis and its role in managerial decision making.

**TEXTBOOK**

Mark Hirschey, *Managerial Economics*, 10th edition, Thomson/South-Western
College Publishing: 2003

**COURSE REQUIREMENTS: **In addition to in-class exams and homework
assignments,** **each student will undertake a short econometric project.
In this project, students will use regression methods of analysis to examine
an econometric model they themselves will construct to address a topic
of their interest. Students will be directed to use the library as well
as the Internet resources to obtain the required data. Students will use
hypothesis testing techniques and other standard statistical tests to evaluate
their regression results. They will be required to report the results of
their analyses in the form of a term paper. The paper will be due one week
before the last meeting of the semester. Further instructions about the
course project will be given in class.

The final grade in the course will be determined according to the following
weights:

I. Introduction

What Is Managerial Economics?

Firms and Managerial Objectives

Economic Optimization

Firms and Profits

Tools of Economic Analysis

Marginal Analysis

II. Demand and Supply

Demand

Supply

Demand Analysis

Elasticity

III. Regression Analysis: Demand Estimation

Measuring Economic Relationships

Statistical Relations and Regression Analysis

Forecasting

The Business Cycle

Time Series Trends

IV. Production and Cost

Theory of Production

Cost and Profit Analysis

Empirical Analysis of Production and Cost

V. Market Structure

Perfect Competition

Monopolies

Measuring Firms' Performance

Making Decisions under Noncompetitive Conditions

Oligopolies

Pricing Methods

VI. Regulating the Market Economy

Economies of Scale

Taxes and Subsidies

Costs of Regulation

VI. Project Decisions

Decision Making under Uncertainty: Risk Analysis

- ........Midterm.....................October 27
- ........Final...........................December 15
- ........Project due date....... .December 1

**Note:** Students who have a disabling condition which might
interfere with their ability to successfully complete this course are

encouraged to speak, confidentially, to the class instructor, or to
contact the Office of Disability Services

ATTENDANCE POLICY

Students are required to attend classes regularly and actively participate
in all classroom activities. All class assignments must be handed in on
time. Students may submit their class assignments by email *only*
when they are so instructed or permitted by the instructor. Make-up tests
are given only when a student misses a test as a result of a professionally
diagnosed and treated illness and other verified extenuating circumstances.
Make-up tests may or may not have the same format as the scheduled tests.

Said Atri - atri@oswego.edu

Department of Economics, SUNY-Oswego, Oswego, NY 13126