ECON 455
Principles of Managerial Economics
1. Catalog Entry
ECON 455
Principles of Managerial Economics
Credit hours (3)
Prerequisites: ECON 306 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 microeconomic principles and quantitative economic analysis can be used by managers to solve problems and make optimal decisions. The course starts with an analysis of the consumer behavior and the demand side of the market. It explains optimal resource allocation and different cost types in production. It demonstrates how managers make optimal pricing and output decisions to maximize profit under different market structures. Game theory and the role of asymmetric information are analyzed from a managerial point of view.
Topic Outline
1) Scope and Context of Managerial Economics
2) Use of Models
3) Demand and Consumer Behavior
4) Production and Cost
5) Price and Output Decisions
6) Perfect Competition
7) Monopoly
8) Monopolistic Competition
9) Oligopoly
10) Game Theory
11) Selected Topics in Managerial Economics
3. Detailed Description of Conduct of Course
The following teaching strategies may be employed:
Lectures, videos, discussions, in-class and/or at-home activities and assignments.
4. Goals and Objectives of the Course
After successfully completing the course the student will be able to:
1) Analyze how consumers make decisions given market outcomes. (SLO3, SLO4, SLO6)
2) Apply marginal analysis. (SLO3, SLO4, SLO6)
3) Estimate the demand function the firm faces. (SLO3, SLO4)
4) Apply production and cost theories and their methods. (SLO4)
5) Identify the market structure the firm faces based on market characteristics. (SLO3, SLO4)
6) Employ quantitative techniques to find optimal decisions for firms. (SLO4, SLO6)
5. Assessment Measures
The following assessment measures may be employed: Tests, quizzes, homework, reports,
presentations, or class participation. Grades and percentages depend on individual
professors.
6. Other Course Information
None
Review and Approval
September 2, 2014
December 2013 C. Vehorn
April 16, 2012
December 2004 N. Hashemzadeh, Chair