Outlines of Managerial Economics
1. The objective of the course
Managerial Economics is one of the important core courses for MBA students. This course
serves to integrate variousanalyticaland conceptualtools learned in thebusiness curriculum
into theframework of economic thinking.Heavy reliance isplacedon the ability to crystallize
students academic and practical experience into a coherent method of reasoning which can be
applied to abstract thought and practical application.
2. Course requirements
1).HomeworkAssignments.Atleast5homeworkassignmentswillbegiven.Homework isoptional,
but if it is turned in itwillbe graded and counted.Homework willbe assigned oneweek before
due date, and willusually consist of problems from the end of chapters. Homework is important
in terms of final grades, and as a preparation for exams. Collaboration with fellow students
is allowed, though answers should not be identical.
2). Working Papers
At least onepaper isrequired during the courseperiod. The subjectsof paper can be chosen
from the given options. The paper should be turned in before the final exam.
3). Exams
There isa final exam at the end of the course. The exam will consist of short answer essay
questions and problems.
3. Textbook and reference materials
1) S. Charles Maurice Christopher R. Thomas, Managerial Economics (Sixth edition),
McGraw-Hill Company, Inc.1999.
2) Robert S. Pindyck Daniel L. Rubinfeld, Microeconomics (Third Edition)
3) Various academic journals in economics field and references from internet.
4.Course Outline
I. Introduction
Define managerial economics
Theory of the Firm
objective and value of the firm
profits and the function of profit
Demand-supply analysis and market mechanism
Optimization Techniques
Economic Relationships:Total, Average and margin.
Optimization and constrained optimization with really basic calculus
Profit Maximization w
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