Department of Business ECON600 Managerial Economics 3 Credit Hours 8-Weeks Prerequisite(s): None

Table of Contents Instructor Information Course Description Course Scope Course Objectives Course Delivery Method Course Materials Instructor Information Instructor: Dr. Frederic Bouchet Email: fb1867@online.apus.edu Phone: (703) 335-9483 Office Hours: Located in Eastern Time Zone Table of Contents Course Description (Catalog) ECON600 Managerial Economics (3 hours) Managerial Economics is an applied microeconomic course that investigates how managerial decisions are made within organizations using the tools, framework and concepts of economic analysis. In this course students learn a variety of techniques that will allow them to solve business problems relating to demand, costs, prices, revenues, profits, and competitive strategies. Statistical methods such as regression analysis and forecasting methods are used for estimating demand for products and services, cost of production and output. Topics include demand and supply analysis, consumer demand theory, production and cost analysis, and market structure. Table of Contents Course Scope Evaluation Procedures Grading Scale Course Outline Policies Academic Services Selected Bibliography

Managerial Economics is an application of microeconomics for solving management problems. It attempts to optimize business decisions given the firm's objectives and constraints imposed by scarcity. Managerial economics draws heavily from quantitative techniques such as regression analysis and correlation. Topics draw from microeconomics includes demand theory, production decisions, market structure and pricing, profit analysis, and profit management
Table of Contents Learning Objectives

LO-1. LO-2. LO-3. LO-4. LO-5. LO-6. LO-7. LO-8. LO-9.

Identify the purpose of managerial economics. Identify and discuss the six-step model of decision making. Identify how the firms profit-maximizing level of output is determined including the optimal condition in terms of the basic components, marginal revenue and marginal cost. Define a multi-variable demand function and identify its purposes. Explain the relationship between price elasticity of demand and revenue. Discuss how a firm can maximize its profit by using optimal markup pricing and price discrimination. Explain how empirical analysis is both art and science. Explain the statistics that are generated by regression analysis. Discuss the relationship between production and cost.

LO-10. Explain and contrast short-run concepts (fixed inputs, marginal product, diminishing marginal returns, etc.) and long-run concepts (returns to scale). LO-11. Identify the impact of economies of scale and scope on production decisions. LO-12. Apply optimization concepts to cost minimization and optimal decision making. LO-13. Identify the relationship between a perfectly competitive market structure and managerial decision making. LO-14. Examine equilibrium in the short run and long run and the dynamics of entry and exit. LO-15. Explain the dynamic of price and output decisions under pure monopoly.

LO-16. Contrast competitive and monopolistic outcomes.

Table of Contents Course Delivery Method

This course will offer the student a highly interactive virtual classroom. Each weeks lesson will have a course announcement, assigned readings and assignments based on either course readings or an internetbased project. The course will provide the student with the necessary knowledge of the economics system to better appreciate and comprehend world events and motivations of the numerous key players involved with shifts in economic environments. Students are expected to research course concepts and be able to discuss current events in relationship to course concepts. Since the student is expected to fully participate in forums and interact with the instructor and other students, reading assignments and assigned projects should be completed in a timely manner.

Table of Contents Course Materials

1. Samuelson and Marks, Managerial Economics, 6th Edition. 2. Comprehensive Lecture Notes
3. Online Research Library

Table of Contents Evaluation Procedures Grades for this course will be based upon four grading instruments. There are discussion questions that are provided in the Forum. The student will respond to forum topic and the posting of other students. The assignments are used to review what you have learned from reading and independent research. The grade scale for each of the evaluation procedures is below: Component Forum Posts (7) Weekly Assignments (12) Research Projects (2) Points 100 points each 100 points 100 points Percentage 26% 24% 50%

Weekly Assignments. Please review the weekly calendar posted in the first week announcement. Forum Please join the forum during the class session. Students must post a reply to the weekly forum question and at least one reply to other students. Replies must be posted in the week due and replies after the end of the each week will not be graded. The forum are for student interaction and submitting input after the weekends serves no learning objectives. Students should demonstrate their own knowledge in the forums and avoid copying and pasting from web sites. Students should NOT post their forum replies as an assignment. Your grade earned for the forum discussions will be based on your total engagement during the week. For example, your initial reply might be lacking some content or detail but through engagement with other students your discussions might conclude with enough detail and explanation to earn full points. Your forum grade will be based on your first reply (possible 50%) and your further engagement with your classmates (50%). Just replying does not guarantee full credit. You must provide meaningful input that will further the discussion in the forums. Please note that the forum is an important part of your grade in this class. Please do not decide you will submit your initial forum reply as an assignment just to be safe. Instructors have a direct link to the grade book from the forum. I will grade directly from the forum. Be aware: Instructors must grade all assignments submitted by students. If you decide to go against the class policy and submit your forum reply as an assignment, I will grade that one input as you request (50%) and will not go back to the forum to grade. There is no way students can earn full points for forum activity if they submit one note as an assignment. Avoid making this mistake. Submission of assignments and grading Be sure to turn in assignments on time. I will grade assignments once a week. If your assignment is submitted after the weekly grading, I will grade it during the next grading period for our class. Your assignment will not be counted late if you submit it on time but not in time for the weekly grading. It is preferred that students visit the class each week and submit assignments during the week they are due. Table of Contents

Course Outline

Week 1

Topic(s) Economic Decision Making

Learning Objective(s) LO-1. Identify the purpose of managerial economics. LO-2. Identify and discuss the six-step model of decision making. LO-3. Identify how the firms profit-maximizing level of output is determined including the optimal condition in terms of the basic components, marginal revenue and marginal cost. LO-4. Define a multivariable demand function and identify its purposes. LO-5. Explain the relationship between price elasticity of demand and revenue. LO-6. Discuss how a firm can maximize its profit by using optimal markup pricing and price discrimination. LO-7. Explain how empirical analysis is both art and science. LO-8. Explain the statistics that are generated by regression analysis. LO-1. Identify the purpose of managerial economics. LO-2. Identify and discuss the six-step model of decision making. LO-3. Identify how the firms profit-maximizing level of output is determined including the optimal condition in terms of the basic components, marginal revenue and marginal cost. LO-4. Define a multivariable demand function and identify its purposes. LO-5. Explain the relationship between price elasticity of demand and

Reading(s) Samuelson and Marks Chapter 1

Assignment(s) Assignment 1 Assignment 2 Forum 1 Forum 2 Assignment 3 Assignment 4 Forum 3

Optimal Decisions Using Marginal Analysis

Samuelson and Marks Chapter 2

Demand Analysis and Optimal Pricing, and Estimating and Forecasting Demand

Samuelson and Marks Chapters 3 and 4

Assignment 5 Assignment 6 Forum 4

Research Project 1

Research Project 1 Rubric for Research Project

Research Project 1

revenue. LO-6. Discuss how a firm can maximize its profit by using optimal markup pricing and price discrimination. LO-7. Explain how empirical analysis is both art and science. LO-8. Explain the statistics that are generated by regression analysis. 5 Production Analysis LO-9. Discuss the relationship between production and cost. LO-10. Explain and contrast short-run concepts (fixed inputs, marginal product, diminishing marginal returns, etc.) and long-run concepts (returns to scale). LO-11. Identify the impact of economies of scale and scope on production decisions. LO-12. Apply optimization concepts to cost minimization and optimal decision making. LO-13. Identify the relationship between a perfectly competitive market structure and managerial decision making. LO-14. Examine equilibrium in the short run and long run and the dynamics of entry and exit. LO-15. Explain the dynamic of price and output decisions under pure monopoly. LO-16. Contrast competitive and monopolistic outcomes. LO-9. Discuss the relationship between production and cost. LO-10. Explain and contrast short-run concepts Samuelson and Marks Chapter 5 Assignment 7 Assignment 8 Forum 5

Cost Analysis

Samuelson and Marks Chapter 6

Assignment 9 Assignment 10 Forum 6

Perfect Competition and Monopoly

Samuelson and Marks Chapters 7 and 8

Assignment 11 Assignment 12 Forum 7

Research Project 2

Samuelson and Marks Chapter 6

Research Project 2

(fixed inputs, marginal product, diminishing marginal returns, etc.) and long-run concepts (returns to scale). LO-11. Identify the impact of economies of scale and scope on production decisions. LO-12. Apply optimization concepts to cost minimization and optimal decision making. LO-13. Identify the relationship between a perfectly competitive market structure and managerial decision making. LO-14. Examine equilibrium in the short run and long run and the dynamics of entry and exit. LO-15. Explain the dynamic of price and output decisions under pure monopoly. LO-16. Contrast competitive and monopolistic outcomes.

Research Project 2 Rubric for Research Project

Table of Contents Policies Please see the student handbook to reference all University policies. Quick links to frequently asked about policies are listed below. Drop/Withdrawal Policy Grading/APUS Grading System Extension Process and Policy Plagiarism Policy Disability Policy

PLAGIARISM 1. All students are expected to commit to the highest level of academic honesty and personal integrity. Please, review carefully the University policies concerning plagiarism using the link below: http://www.apus.edu/center-teachinglearning/Students/Resources/Plagiarism/index.htm 2. Students are required to use turnitin.com for written assignments and for their initial post in the forums. 3. If students do not use turnitin.com, the instructor will accomplish this. 4. Students received a grade of zero for plagiarized work. 5. All incidents of plagiarism are reported to academics for the proper academic sanctions.

6. Instructions for using turnitin.com are in the resources, under course tools. WRITING EXPECTATIONS All written submissions should be submitted in a font and page set-up that is readable and neat. It is recommended that students try to adhere to a consistent format, which is described below. Typewritten in double-spaced format with a readable style and font and submitted inside the electronic classroom (unless classroom access is not possible and other arrangements have been approved by the professor). Arial 12-point font or Times New Roman styles. Page margins Top, Bottom, Left Side and Right Side = 1 inch, with reasonable accommodation being made for special situations and online submission variances. CITATION AND REFERENCE STYLE Assignments completed in a narrative essay or composition format must follow APA format. LATE ASSIGNMENTS Late assignments are not automatically graded. Students having difficulties meeting class commitments must communicate with the instructor. Students are expected to complete assignments on time. A 10% penalty may be applied for each week assignments are late unless the student contacts the instructor ahead of time about an extenuating situation. NETIQUETTE Online universities promote the advance of knowledge through positive and constructive debate--both inside and outside the classroom. Discussions on the Internet, however, can occasionally degenerate into needless insults and flaming. Such activity and the loss of good manners are not acceptable in a university setting--basic academic rules of good behavior and proper Netiquette must persist. Remember that you are in a place for the fun and excitement of learning that does not include descent to personal attacks, or student attempts to stifle the discussion of others.

Technology Limitations: While you should feel free to explore the full-range of creative composition in your formal papers, keep e-mail layouts simple. The Educator classroom may not fully support MIME or HTML encoded messages, which means that bold face, italics, underlining, and a variety of color-coding or other visual effects will not translate in your e-mail messages. Humor Note: Despite the best of intentions, jokes and--especially--satire can easily get lost or taken seriously. If you feel the need for humor, you may wish to add emoticons to help alert your readers: ;-), : ), J

DISLCAIMER STATEMENT Course content may vary from the outline to meet the needs of this particular group. Table of Contents Academic Services ONLINE LIBRARY RESEARCH CENTER & LEARNING RESOURCES The Online Library Resource Center is available to enrolled students and faculty from inside the electronic campus. This is your starting point for access to online books, subscription periodicals, and Web resources that are designed to support your classes and generally not available through search engines on the open Web. In addition, the Center provides access to special learning resources, which the University has contracted to assist with your studies. Questions can be directed to orc@apus.edu.

Charles Town Library and Inter Library Loan: The University maintains a special library with a limited number of supporting volumes, collection of our professors publication, and services to search and borrow research books and articles from other libraries. Electronic Books: You can use the online library to uncover and download over 50,000 titles, which have been scanned and made available in electronic format.

Electronic Journals: The University provides access to over 12,000 journals, which are available in electronic form and only through limited subscription services. Turnitin.com: Turnitin.com is a tool to improve student research skills that also detect plagiarism. Turnitin.com provides resources on developing topics and assignments that encourage and guide students in producing papers that are intellectually honest, original in thought, and clear in expression. This tool helps ensure a culture of adherence to the University's standards for intellectual honesty. Turnitin.com also reviews students' papers for matches with Internet materials and with thousands of student papers in its database, and returns an Originality Report to instructors and/or students. Smarthinking: Students have access to 10 free hours of tutoring service per year through Smarthinking. Tutoring is available in the following subjects: math (basic math through advanced calculus), science (biology, chemistry, and physics), accounting, statistics, economics, Spanish, writing, grammar, and more. Additional information is located in the Online Research Center. From the ORC home page, click on either the Writing Center or Tutoring Center and then click Smarthinking. All login information is available. Table of Contents