BBA Program Managerial Economics

Course Code: ECO311 Pre-requisite Courses: Microeconomics & Business Mathematics WELCOME TO THE CLASS

Introduction: I look forward to have a fruitful and meaningful interaction with each one
of you during the term. This will however depend on your active participation and attention during the class sessions and an active follow up afterwards. Course Description: This course will teach students how to make decisions regarding price, production, investments and various other economic parameters y using different mathematical tools. The course is consisting of theory of consumer ehavior, theory of firm, investment, capital formation and input!out model. Course Objective: The main o "ective of this course is to teach students how to use some advance mathematical techni#ue for economic analysis. $tudents will learn how to apply an appropriate mathematical procedure%tool to solve an economic pro lem and how to perform proper mathematical analysis. They will e taught how, in terms of economics, usiness firms make decisions on price, output, investment and related matters and some of the conse#uences of such decisions. Te c!in" Met!odo#o"$ % &equire'ents: Please arrive and leave on time. &lass will egin promptly five minutes after the hour and will end e'actly on the hour. (ate arrivals and early departures disrupt class and ruin the presentations of others. They are unprofessional. )o your own work. Plagiarism and cheating will lead to dismissal. )o not copy the work of others. )o not use others to do your work. )o not pass off work done in past semesters as work done for this course. Assignments must incorporate lessons taught in class. Personal assignments must e produced individually. *roup assignments must e produced y the mem ers of the group. $tudents will e e'pected to read assignments in advance of their discussion in class. &lass time will e used to emphasi+e and clarify some te't material, ut additional topics will e discussed as well. This will not e a lecture!only course. ,ou will e asked to discuss what you have read. -hile you should e'pect to e fre#uently called on in class, you should also voluntarily discuss and ask #uestions. .EA) A/) BE P.EPA.E) T0 )I$&1$$ A(( )I$&1$$I0/ 21E$TI0/$ A/)%0. &A$E$ AT T3E E/) 04 EA&3 &3APTE..

&lass meetings will /0T cover everything in the te't. $eparate instructions will e provided for assignments. All written assignments must e handed in at the eginning of class on the due dates. They will not e accepted after the class has egun. All assignments not completed on time 5not handed in efore class has egun6 will receive a +ero. &heck the schedule for due dates. It is essential to keep current with the chapter assignments. &lassroom conduct is predicated on the assumption that you have read the relevant material. ,ou are most welcome to ask #uestions in class dealing with any material eing presented, and to take an active role in class participation. Course Contents .eview of matri' alge ra (eontief Input!0utput Model .eview of alge ra and analytical geometry .eview of calculus 5differentiation6 Theory of consumer ehavior o )emand and supply functions o &oncept of parameters of demand and supply functions o Market e#uili rium o (aws of demand and supply o .elationship etween parameters of demand and supply functions and market e#uili rium. o Elasticity 5 oth arc and point6 o Price elasticity of demand o Income elasticity o &ross elasticity o .elationship etween revenue and price 5with reference to elasticity6 .eview of calculus 5optimi+ation techni#ues6 Theory of firm o &ost, revenue and profit functions o 0ptimi+ation of cost, revenue and profit o Incidence of ta'ation Investments 7 E'ponential function 5concept of continuous compounding6 .eview of &alculus 5Integration6 &apital formation Theory of firm 5cont.6 8optional9 o .eview of calculus 5Partial derivatives6 o 0ptimi+ation with more then one independent varia les o Profit ma'imi+ation 5multi!plant firm, multi!product firm, price discrimination6

Testin" nd (r din": (earning will e accomplished through lectures, outside readings case analysis and student participation in classroom discussion and presentations. *rading will tend to focus on your overall personality rather than one or two aspects. A

mid!term e'amination and a comprehensive final e'amination will e given. Another portion of the course grade will include the discussion%attendance grade, #ui++es, cases and%or other assignments. Each student will also e re#uired to complete individual pro"ect. The mid!term e'amination will e of :; percent and final e'amination will e of <= percent. E'cessive a sences 5more than := percent6 will result in >4 *rade?. Test #uestions may e taken from te't ook readings, hyperte't material, additional material discussed in class and %or other assigned readings. $tudents may prepare note ook for taking notes and for references. M r)s Distribution o* +,,-: 2ui++es Assignments &lass -orkshops &ases Pro"ects Mid!term 4inal E'am Total @@@@@@@@@@@@@@ @@@@@@@@@@@@@@ @@@@@@@@@@@@@@ @@@@@@@@@@@@@@ @@@@@@@@@@@@@@ @@@@@@@:;@@@@@ @@@@@@@<=@@@@@ 100_____

&eco''ended &e din"s: M n "eri # Econo'ics by H. Craig Petersen and W. Cris Lewis &e*erence .oo)s: App#ied M t!e' tics *or .usiness/ Econo'ics nd Soci # Sciences by ran! ". Budnic! M t!e' tic # Econo'ics by #$%ha Chiang. P#e se 0ote: In the unlikely event of an unplanned a sence y the instructor, the material to have een covered during that class meeting will e shifted to the ne't meeting. If a test was scheduled for that class meeting, the test will e given during the ne't class meeting. In the event of any necessary planned a sences, information on schedule changes will e provided in advance.