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Economics 455

ECON 455
Principles of Managerial Economics

1. Catalog Entry

ECON 455
Principles of Managerial Economics

Credit hours (3)
Prerequisites: ECON 206 and STAT 200

Demonstrates the use of microeconomic theory and quantitative methods in the formulation of business plans and the solution of business problems.  

2. Detailed Description of Course

The objective of the course is to show how economic analysis can be used by managers to solve problems and make optimal decisions.  It demonstrates how managers can analyze: (a) demand side of their business, (b) the production and cost side, and (c) the effects that the market structure is going to have.  The course focuses on the quantitative techniques managers use to carry out their analyses.  

Topic Outline
    1) Scope and Context of Managerial Economics
    2) Use of Models
    3) Elementary Mathematical Concepts
    4) Demand and Consumer Behavior
    5) Production and Cost
    6) Price and Output Decisions
    7) Selected Topics in Managerial Economics

3. Detailed Description of Conduct of Course

The following teaching strategies will be employed:

Lectures, discussion, homework sets.  Occasionally guest speakers from local businesses may be invited.

4. Goals and Objectives of the Course

After successfully completing the course the student should be able to:
    1) Know marginal and incremental analysis.
    2) Understand the methods used to derive the demand function the firm faces.
    3) Know the theory of the production function.
    4) Understand cost theory and the methods used to estimate cost functions.
    5) Recognize the characteristics of the market structure the firm faces and how this structure
       affects pricing and output decision.

5. Assessment Measures

Students will be evaluated on the basis of tests, homework problems, other assignments, and class participation.  The individual professor will determine the respective weights.

6. Other Course Information

None

Review and Approval

September 2, 2014
December 2013 C. Vehorn
April 16, 2012
December 2004 N. Hashemzadeh, Chair