Text:   Hirschey and Pappas, Fundamentals of Managerial Economics, 6th edition

Disclaimer:   Until I find a way to FTP from my brain to yours or I discover the secret of Vulcan mind meld, part of the responsibility for learning about economics will be yours.

E-mail:   I will give you a computer account on Rocko that you can use for e-mail I will send you assignments and other communication by e-mail. Occasionally, I will e-mail questions to you about the reading assignment. Those who respond by e-mail with correct answers before the deadline will receive extra credit. I will not give you any e-mail assignments after 6 p.m. that are due before 6 p.m. the next day.

Computer Exercises:   Assignments must be completed with a word processor and you will be given computer exercises including Internet assignments and spreadsheet exercises.

Assignments:   I will drop your two lowest scores. Any assignments turned in after class on the day that they are due will receive a grade of 0.

Course Grade:   At the end of the semester I will drop your two lowers scores, sum the remaining assignment scores and any extra credit points. Then I will divide the sum by the number of assignments and apply the following scale (in percent) to determine your grade for the course:

I will ask each of you to select a 4 digit code, and I will post your grades with the code on a web page immediately after grading each assignment.

Policies Regarding Adds and Drops:   Students may drop for any reason during the first 2 weeks of class. After that you need a documented "serious and compelling" reason. You may add if space permits during the first 2 weeks of class. During the third and fourth week, you will need to receive my permission to add.

Students cannot add after the fourth week of class. The state will not pay the University for your share of the cost nor will the department receive any credit for your participation if you add after the fourth week.

Policy Regarding Disabled Students:   Disabled students are encouraged to meet with me during the first week of class to jointly determine how their specific needs can be best accommodated.

READING ASSIGNMENTS

Week 1:   

Overview of this class (Ch. 1 & Ch. 2)

You will learn:

1.   How economists view the Marlboro Man
2.   Why the Ferengi are wrong
3.   How economists are different from accountants
4.   Why some firms make profits
5.   Why South Korea's economy was doomed to collapse
6.   How to determine the value of any asset

Assignment for Week 1 Due < 2 p. m., Thur., Feb. 5

Week 2:   

Spreadsheets & Basic Economic Relationships (Ch. 2)

You will learn:

1.   Why it's important to use incremental analysis
2.   The difference between maximizing profits and maximizing value
3.   A practical way to use spreadsheets
4.   Graphing with Excel

Assignment for Week 2 Due < 2 p. m., Thur., Feb. 12

Week 3:   

Methods of Data Presentation (Ch. 3)

Part 1 of Class Slides for Chapters 3

Part 2 of Class Slides for Chapters 3

You will learn about:

1.   Describing the typical using mean, median, and mode
2.   Explaining variation using range, variance & standard deviation
3.   Making graphs using a spreadsheet

Assignment for Week 3: Complete the Quiz for Chapter 3, and send the results to me < 2 p. m., Thur., Feb. 19

Week 4:   

Regression Analysis (Ch. 3)

Class Slides on Regression

You will learn:

1.   How to make a simple forecast
2.   How to decide if your forecast is useful

Week 5:   

Demand & Supply (Ch. 4)
Elasticity (Ch. 5)

Class Slides on Demand & Supply

Class Slides on Elasticity

You will learn:

1.   How consumers respond to changes in prices
2.   How to estimate the impact of a price change
3.   About the elasticity of demand for traffic fines
4.   How insurance firms profit from your traffic fines
5.   If a change in price will cause your firm's revenue to increase or decrease
6.   Why the Golden Gate Bridge Authority was surprised

Part 1 of Assignment for Week 5 Due < 2 p. m., Fri., March 5

Part 2 of Assignment for Week 5 Due < 2 p. m., Fri., March 5

Week 6:   

Finish Elasticity (Ch. 5)
Forecasting(Ch. 6)

Part 1 of Class Slides on Forecasting

You will learn about:

1.   Expert opinion
2.   Survey techniques
3.   Trend analysis and projection
4.    Barometric forecasting

More Forecasting (Ch. 6)

Part 2 of Class Slides on Forecasting

You will learn about:

1.    Econometric Models
2.    Input-Output Models

Week 8:   

Production Analysis (Ch. 7)

Class Slides on Production

You will learn about:

1.   The law of diminishing returns
2.   Returns to scale
3.   Other reasons why long-run costs vary
4.   Why mergers sometimes fail

Week 9:   

Spring Break (March 22-26)

Week 10:   

Cost Analysis (Ch. 8)

Class Slides on Cost Analysis

You will learn about:

1.   The importance of remembering implicit cost
2.   The importance of forgetting sunk cost
3.   Minimum efficient scale (MES)
4.   Transportation cost & MES
5.   Multiple-plant economics & diseconomies of scale
6.   Plant size and flexibility
7.   The learning curve
8.   Economies of scope

Week 11:   

More Cost Analysis (Ch. 8)

You will learn about:

1.   Cost-volume profit analysis
2.   Using a spreadsheet to analyze cost
3.   Why Microsoft is a threat to free enterprise
4.   How Microsoft plans to polish its image
Assignment 9 Due < 2 p. m., Thur., April 8.

Week 12:   

Methods of Competition (Ch. 10)

Class Slides: Competition VS. Monopoly

You will learn:

1.   How to identify purely competitive firms
2.   What it means to face the "going market price"
3.   How to maximize profits
4.   Barriers to entries
5.   The difference between a price taker and a price maker
6.   Why monopoly is bad for consumers
7.   The difference between a price taker and a price maker
8.   Why market niches are attractive
9.   How to use rate of return on equity (ROE)

Assignment 10 Due < 2 p. m., Thur., April 15.

Week 13:   

Methods of Competition (Ch. 11)

Class Slides on Monopolistic Competition

Class Slides on Oligopoly

You will learn:

1.   How to identify monopolistic competition and oligopoly
2.   Why Leggs panty hose comes in an egg shaped container
3.   When large size is a disadvantage
4.   Why there is no such thing as a typical oligopolist
5.    About horizontal, vertical & conglomerate mergers O
6.   About the most profitable firms in the U. S.

Assignment 11 Due < 2 p. m., Thur., April 22.

Week 14:   

Pricing Practices (Ch. 12)

Class Slides on Price Discrimination

You will learn about:

1.   The optimal mark-up price
2.   The real reason that restaurants offer "senior citizen" discounts
3.   Beating the airlines at their own game
4.   Transfer pricing

Assignment 12 Due < 2 p. m., Thur., April 29.

Week 15:   

Making Risky Decisions (Ch. 14)

Class Slides on Risk

You will learn about:

1.   The different types of risk
2.   The difference between risk and uncertainty
3.   Probablility Distributions
4.   Measuring risk

Assignment 13 Due < 2 p. m., Thur., May 6, 1999.

Week 16:   

Capital Budgeting (Ch. 15)

How would you complete this assignment?

You will learn about:

1.   Adjusting values for risky outcomes
2.   Rules for making good decisions
3.   Why people gamble
4.   Why people insure
5.   Why people insure
6.   Using decision trees

Week 17:   

Final Exam Week

Assignment 14 is due 4 p.m., Thursday, May 20, 1999.