Instructor:
Dr. Jin W. Choi
6216 DePaul Center
Phone: (312)362-8842
e-mail: jchoi@depaul.edu
Office Hours: Usual;ly one hour before
the class time at different campuses depending upon a teaching schedule
for a give quarter: O'Hare Campus @847-296-5348; Loop Campus @312-362-8842;
Naperville
Campus @630-548-9378. And at any other time by appointment.
Textbook: McGuigan, Moyer, and Harris. Managerial Economics, 8th Ed., The West Publishing Co., 1999.
Objective: To learn the tools
and techniques of microeconomic analysis that are useful to firm managers
in making
business decisions. The course will make heavy use of microeconomic theory,
optimization
techniques, college-level algebra, and statistics.
Course Schedule:
_____________________________________________________________
Week Topics to be Covered Chapters
1
Introduction
1 and 2
* Explanation of Syllabus
* Definitions: profit, cost, etc.
* Theories of Profit
* Time Value of Money
* Chapter 1 Assignments: 1, 2, 5, 6.
2
Economic Optimization
2 and 3
* Review of Basic Statistics
* Profit Maximization
* Marginal Analysis in Decision Making
* Types of Optimization Problems
* Basic Differentiation Rules
* Chapter 2 Assignments: 4, 5, 6, 7, 11, 12
* Chapter 3 Assignments: 5 thru 14, and 23
3
Demand Elasticity
4
* Point and Arc Elasticity Formula
* Own Price Elasticity
* Income Elasticity
* Cross Price Elasticity
* Other Types of Elasticity
* Own Price Elasticity of Supply
* The Share of an Excise Tax Burden
* Chapter 4 Assignments: 5, 6, 9 thru 17, 19, 21, 24
4
Demand Estimation
4 and 5
* Theoretical Derivation of a Demand Curve
* Empirical Derivation of a Demand Curve
* Regression Analysis
* Chapter 5 Assignments: 6 thru 15
5
Forecasting
5 and 6
* Intro to Forecasting Methods
* Use of Simple Forecasting Methods
* Use of Regression Methods
* Review for the Midterm Exam
* Chapter 6 Assignments: 6, 7, 8, 13, 14
6
Midterm Exam
1 thru 6
7
Production Theory and Linear Programming
7 and 10
* Review of the Midterm Exam
* Definitions
* Determining the Optimal Input Combination
* Returns to Scale
* The Primal and the Dual Problems of LP
* LP Solution Techniques
* Chapter 7 Assignments: 6, 7, 11
* Chapter 10 Assignments: 1, 7
8
Cost Theory and Its Applications
8 and 9
* Definitions
* Determination of A Short-run Supply Curve
* Determination of a Long-run Supply Curve
* Chapter 8 Assignments: 3, 8, 10
* Chapter 9 Assignments: 2, 4, 6, 8, 9, 11, 12
9
Perfect Competition & Monopoly
11 and 13
* Conditions for Perfect Competition
* Types of Monopoly
* Price Determination Under Monopoly
* Behavior of OPEC as a Cartel
* Chapter 11 Assignments: 7, 11, 12, 13, 15
* Chapter 13 Assignments: 9, 10, 11, 12, 17
10
Oligopoly and Pricing
14 and 16
* Oligopolistic Competition
* Price Discrimination
* Product Differentiation
* Various Pricing Concepts
* Product Pricing in Practice
* Review for the Final Exam
* Chapter 14 Assignments: 1, 2, 3, 4
* Chapter 16 Assignments: 3, 5, 6, 17
11 Final Exam 7 thru 11, 13, 14, and 16
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Grading Format:
There will be two exams of the midterm and the final with an equal weight of 50% each. Almost all exam questions will be of a short-essay type, similar to the chapter-end problems. Assignments are given as shown above but will NOT be graded. However, it is essential that you master all the problems assigned.
No make-up exam will be allowed unless prior
permission is granted. If you have to miss the scheduled exam,
please discuss the matter with the instructor a week before the exam or
arrange to take the exam BEFORE the scheduled date. Otherwise, it is assumed
that your total points for the missed exam will be zero (0). If a make-up
exam is to be given, it will be most likely to have a different format
and may not match the difficulty level of the original exam. A third-party
note explaining the reason for not being able to take the scheduled exam
is required unless waived by the instructor.
Grading Policy and Scale:
Please
visit the grading policy and scale site.