Economics 315 - Intermediate Busines Microeconomics, Fall 2018 Syllabus
Economics 315 – Intermediate Business Microeconomics, Spring 2020 Syllabus
Faculty: Francis Mummery Schedule #: 11995; Section: 1; Time: 4:00 – 5:15 PM, Mon/Wed; Room: SGMH 1502; Office: SGMH 3384; Phone: 657 278-5650; email: fmummery@fullerton.edu
Office Hours: Mon/Tue: 5:15 - 5:45 PM and Wed/Thur: 3:30 – 4:00 PM, and by appointment
Introduction:
Welcome to Economics 315 – Intermediate Business Microeconomics! The primary objective of this course is to develop the complete set of tools required for a firm’s manager to make well informed, responsible, and efficient business decisions in an increasingly dynamic world. The course integrates traditional microeconomic analysis and standard topics with the treatment of current and important topics faced by today’s managers.
To be adequately prepared for today’s fast changing business environment, managers must have an understanding of the vast array of influences on the firm and an appreciation of the environment in which it operates. Hence, a business student’s education is incomplete without adequate exposure to the following perspectives: (i) Ethical issues; (ii) Global issues; (iii) Political, social, legal, regulatory, and environmental issues; (iv) Technological issues, and (v) The impact of demographic diversity on organizations. This class will provide the students with the tools to apply the insights of economics to the business environment with the perspectives outlined above.
Requirements:
Students taking this course must have completed Econ 201, Econ 202, and Math 135. In addition, students should have had, or currently be enrolled in ISDS 361A. All unqualified students should drop this course.
Text:
Managerial Economics and Business Strategy, 9th Edition, by Michael R. Baye and Jeffrey T. Prince, McGraw-Hill Irwin, 2018, with Connect.
Study Tools:
I encourage you to use the publisher’s website which works through some demonstration problems from each chapter, see: http://highered.mheducation.com/sites/1259290611/
There is also a website for an older edition of the text that provides some additional practice exercises, see: http://highered.mcgraw-hill.com/sites/0073523224/information_center_view0/
In addition, tutors are available at the College Tutoring Center. Here is the link to the website: https://business.fullerton.edu/Tutoring
I encourage you to read The Wall Street Journal or The Economist.
For a great deal on The Wall Street Journal, see the following website: http://r.wsj.com/PROF7phd
My experience has shown me that the students that perform best in this class are those that come to every class, take careful notes, continually review the material, and practice with homework exercises.
You will be required to do a number of homework exercises throughout the semester and your performance on these exercises will be included in your course grade. These assignments will be announced by email and in class and will be from chapters we cover. You will be doing all of the assignments in Connect. This program can be purchased as part of a package with your text at the bookstore, or you can purchase it by clicking the link below which will provide you with the software and an e-book.
The Connect Web Address for this class is:
https://connect.mheducation.com/class/f-mummery-spring-2020-monday-wednesday-11995
PLEASE BE SURE THAT YOU REGISTER USING THE ABOVE ADDRESS ONLY IF YOU ARE IN THE MONDAY/WEDNESDAY 4:00 PM CLASS.
TO AVOID A FIVE-POINT PENALTY , REGISTER IN THE CORRECT CLASS USING YOUR ENTIRE NAME EXACTLY AS IT APPEARS IN THE UNIVERSITY’S RECORDS.
There are several outstanding teacher assistants for this course. More information about their office hours will be forthcoming.
Supplemental instruction is available for this course. Times and locations will be forthcoming.
Assessment:
Course grades will be assigned based on student performance in the following areas:
Evaluation |
Points Counted |
Actual Points Available |
Exam 1 |
100 |
100 |
Exam 2 |
100 |
100 |
Exam 3 |
100 |
100 |
Comprehensive Final Exam (Optional – see below) |
100 |
100 |
Homework (through Connect) |
100 |
110 |
Total |
400 |
410 |
Students are required to take three exams. If you miss any of the first three exams, you must take the comprehensive final exam. If you take the first three exams and are happy with your course grade, you do not need to take the final exam. If you take all four exams the lowest exam score will be dropped. Notice that there are 10 bonus points possible in the homework. Students can only earn points from the highest three exams and the homework. There are no exceptions.
The grading scale is based on the points counted: A = 360+ (= 90% + of 400); B = 320 – 359.99; C = 280 – 319.99; D = 240 – 279.99; F: < 240. Note that the cut-offs for the grades are firm. THERE IS NO ROUNDING. There are no exceptions. No plus/minus grades are given in this course. Students will need Scantron 882 and a photo ID for all exams. Exams 1, 2, and the final exam will be a mixture of true/false, multiple choice, and short answer/graphing/calculation. Exam 3 will be a mixture of true-false and multiple-choice questions. No note cards, crib sheets, or scratch paper are allowed during the exams.
Exams cannot be scheduled for other dates. There are no make-up exams.
Unprofessional conduct (late arrival, early departure, absence, disruptive behavior, texting in class) could result in a 10% (or more) course grade reduction. No phones, tablets, or laptops are to be used in class. DO NOT TEXT OR CHECK YOUR PHONE IN CLASS.
Academic Dishonesty:
Academic dishonesty, when detected, will result in a grade of F for the course plus additional university level disciplinary action leading to expulsion.
Course Outline:
The outline below is tentative and subject to change. The Roman numerals (i) through (v) reflect the perspectives mentioned in the Introduction that are interwoven in the course material.
Date |
Chapter (perspectives) |
01/20/2020 |
No Class |
01/22/2019 |
1: The Fundamentals of Managerial Economics (ii) |
01/27/2020 |
1: The Fundamentals of Managerial Economics (ii) |
01/29/2020 |
2: Market Forces: Demand and Supply (ii, iii, iv, v) |
02/03/2020 |
2: Market Forces: Demand and Supply (ii, iii, iv, v) |
02/05/2020 |
3: Quantitative Demand Analysis (ii, iii, iv, v) |
02/10/2020 |
3: Quantitative Demand Analysis (ii, iii, iv, v) |
02/12/2020 |
3: Quantitative Demand Analysis (ii, iii, iv, v) |
02/17/2020 |
3: Quantitative Demand Analysis (ii, iii, iv, v) |
02/19/2020 |
EXAM 1 – Remember to bring photo ID to class. |
02/24/2020 |
5: The Production Process and Costs (ii, iii, iv) |
02/26/2020 |
5: The Production Process and Costs (ii, iii, iv) |
03/02/2020 |
6: The Organization of the Firm (ii, iii, iv) |
03/04/2020 |
6: The Organization of the Firm (ii, iii, iv) |
03/09/2020 |
7: The Nature of Industry (iii, iv) |
03/11/2020 |
7: The Nature of Industry (iii, iv) |
03/16/2020 |
8: Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets, (i, iii, iv) |
03/18/2020 |
8: Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets, (i, iii, iv) |
03/23/2020 |
9: Basic Oligopoly Models (i, iii) |
03/25/2020 |
EXAM 2 – Remember to bring photo ID to class. |
03/30/2020 |
No Class |
04/01/2020 |
No Class |
04/06/2020 |
9: Basic Oligopoly Models (i, iii) |
04/08/2020 |
10: Game Theory: Inside Oligopoly (i, iii) |
04/13/2020 |
10: Game Theory: Inside Oligopoly (i, iii) |
04/15/2020 |
11: Pricing Strategies for Firms with Market Power (i, iii) |
04/20/2020 |
11: Pricing Strategies for Firms with Market Power (i, iii) |
04/22/2020 |
11: Pricing Strategies for Firms with Market Power (i, iii) |
04/27/2020 |
11: Pricing Strategies for Firms with Market Power (i, iii) |
04/29/2020 |
13: Advanced Topics in Business Strategy (i, iii) |
05/04/2020 |
14: A Manager’s Guide to Government in the Marketplace (iii, v) |
05/06/2020 |
EXAM 3 – Remember to bring photo ID to class. |
05/11/2020 |
No Class |
05/13/2020 |
FINAL EXAM, 5:00 – 6:50 PM – Remember to bring photo ID to class. |
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Additional Course Information:
You are expected to arrive in class before the start of the lecture. If you must arrive late, please be as undisruptive as possible.
There are no exceptions to the course grading outlined above.
There are no exceptions to the final exam date set by the University.
Students with disabilities have the right to accommodations for documented special needs via the Disability Support Services, UH 101 or via http://www.fullerton.edu/disabledservices/
All students should be aware of the required steps for campus emergencies: http://prepare.fullerton.edu
College of Business and Economics Assessment Statement
The programs offered in College of Business and Economics (CBE) at Cal State Fullerton are designed to provide every student with the knowledge and skills essential for a successful career in business. Since assessment plays a vital role in the college’s drive to offer the best, several assessment tools are implemented to constantly evaluate our program as well as our students’ progress. Students, faculty, and staff should expect to participate in CBE assessment activities. In doing so, the college is able to measure its strengths and weaknesses, and continue to cultivate a climate of excellence in its students and programs.
Learning Outcomes for Economics 315
Overview: After taking this course, students should understand how to apply economic theory and methods to managerial decisions. They should be able to link external market forces to business output and pricing decisions, know how to apply marginal analysis to discrete business choices, and recognize the market structure in which a business operates and its effects on decision making. Students should be able to:
- Recognize the difference between opportunity and accounting costs and understand the impact of opportunity costs on managerial decision making.
- Understand the importance of converting future values to a present value and apply present value tools to calculations of the value of the firm, project choice and other applications.
- Distinguish marginal impacts from total impacts and use marginal analysis for the determination of an optimal choice variable in a discrete and continuous setting.
- Identify the factors in consumer demand and producer supply.
- Determine a predicted market equilibrium graphically and algebraically.
- Clarify the welfare impacts to society of a market equilibrium.
- Determine the direction of market equilibrium changes following governmental interventions in a market.
- Determine the direction of market equilibrium changes following external changes in a market (comparative statics).
- Explain the concept of own-price and other elasticities.
- Calculate elasticities using point estimates and functional formulas.
- Identify the factors affecting an own-price elasticity for a firm’s product.
- Use own-price elasticity concepts to determine the optimal price/ quantity combination to maximize a firm’s total revenue.
- Obtain elasticities using different types of demand functions.
- Analyze demand and supply function coefficients to analyze the nature of a good and its market impacts.
- Clarify the relationship between inputs and outputs in a production function.
- Distinguish the short-run and long-run frameworks for planning.
- Calculate short-run measures of efficiency and use these measures to determine the optimal amount of a variable input for a profit-maximizing firm.
- Conceptualize the long-run technology choice of a firm to minimize costs to achieve production goals.
- Calculate the associated costs of input usage in the short and long-run.
- Determine the optimal scale of firm production in relation to average costs.
- Calculate concentration statistics and other ratios which identify the different types of market structure in which a firm operates.
- Understand how market structure impacts a firm’s pricing and quantity decisions.
- Calculate the optimal quantity and pricing decisions of firms in different market structures (perfect competition, monopoly, monopolistic competition) to achieve profit maximization.
- Apply the shutdown analysis to firms operating with short-run losses.
- Use the tools of marginal analysis or game theory to determine pricing and quantity strategies for firms operating in an oligopolistic market structure.
Economics 315 and the B.A. in Business Administration
How does this class relate to others you will take in your B.A. in Business Administration? Below you will find a chart listing concepts covered in this class and how they relate to other subjects covered in your other classes.
Economics 315 Intermediate Business Microeconomics |
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Key Concepts |
Link to Core |
1 |
Key Concept 1: Firm goals, choices & constraints Key Concept 2: Opportunity (implicit) costs Vs. accounting (explicit) costs Key Concept 3: 5 Forces affecting firm outcomes |
Accounting 201B |
2 |
Key Concept 1: Net present value, time value money Key Concept 2: Project analysis/value of the firm Key Concept 3: Math review (calculus, graphs) |
Finance 320 |
3 |
Key Concept 1: Optimization using table data and functions Key Concept 2: The role of marginal analysis Key Concept 3: Review |
n/a |
4 |
Key Concept 1: Demand analysis using table and function data Key Concept 2: Supply analysis using table and function data Key Concept 3: Market price and quantity equilibrium |
n/a |
5 |
Key Concept 1: Forecasting sales changes given demand shift factors Key Concept 2: Forecasting output changes with supply shift factors Key Concept 3: Impact of government price interventions |
ISDS 361A |
6 |
Key Concept 1: Own-price elasticity of consumer responsiveness Key Concept 2: Use of elasticity to maximize total revenue Key Concept 3: Calculation and use of other elasticities |
Marketing 351 |
7 |
Key Concept 1: Distinguishing short vs. long-run firm production choices Key Concept 2: Productivity measures and choice of a variable input in the short-run Key Concept 3: Optimal mix (or location) of inputs for cost-minimization in the long-run |
Management 339 |
8 |
Key Concept 1: Engineering production relationships (functions) Key Concept 2: Costs (fixed and variable) derived from use of inputs Key Concept 3: Choices of scale (sales level) and unit costs |
Accounting 201B |
9 |
Key Concept 1: Definition of transaction costs Key Concept 2: Methods and choice of input provision Key Concept 3: Different wage packages for incentives |
Management 246 |
10 |
Key Concept 1: Profit maximization analysis Key Concept 2: Application of profit maximization in perfect competition Key Concept 3: Relevant costs and firm shutdown decisions |
n/a |
11 |
Key Concept 1: Applications of profit maximization in monopoly Key Concept 2: Barriers to entry and market power Key Concept 3: Monopolistic competition, advertising |
Marketing 351 |
12 |
Key Concept 1: Profit maximization in oligopoly settings Key Concept 2: Game theory applied to 2-firm actions Key Concept 3: Summary of four market structures |
n/a |
13 |
Key Concept 1: Pricing strategies for firms with market power Key Concept 2: Levels of price discrimination Key Concept 3: Two-part pricing, block pricing, bundling |
n/a |