Syllabus for GBUS 582–Managerial Economics 3 Credit Hours Spring 2016

I. COURSE DESCRIPTION

Analysis of the basic premises of both macroeconomic and microeconomic theory, including production, price, distribution, and interrelationships with the national economy. Emphasizes applications in managerial economics and economic forecasting. Prerequisites: Principles of Economics – BUS 201.

Economic Theory is approached from the managerial perspective. The foundation is provided by the traditional theory of the firm. The course explores the fundamentals of constrained utility- maximizing behavior, constrained cost minimization, production, and profit-maximization as properly analyzed in managerial decision making. In addition, organizational structure of the firm is explored along with forecasting and demand analysis.

II. COURSE GOALS

A. In line with the purpose of this University, this course seeks to do the following: 1. Contribute to the education of the whole person. 2. Sharpen the communication, computation, and critical analysis skills of each student. 3. Encourage the student in acquiring basic knowledge.

B. In line with the purpose of the MBA program, this course is designed to prepare a student for an active role in the business world. Economic Theory is part of a program to educate students who will be spiritually alive, intellectually alert, and physically disciplined to go into every man's world and be a positive influence on the business world.

C. In line with departmental objectives, this course seeks to prepare students in the following areas: 1. Critical thinking (skills in reasoning, objectivity, analysis, interpretation, research, and decision making relevant to the discipline). 2. Communication (abilities in written, oral, and nonverbal communication). 3. Broad interpretation of the dynamics of business within social and professional contexts.

III. STUDENT LEARNING OUTCOMES FOR THIS COURSE

A. Terminal Objectives After participating in class discussions, listening to class lectures, and participating in class projects and exercises, the student will able to apply economic theory, mathematics, and statistical analysis to identify, discuss, and analyze a variety of economic and business problems.

B. Performance Objectives As a result of successfully completing this course, the student will be able to do the following: 1. Discuss the role of managerial economics in business decision-making. 2. Analyze a variety of demand functions.

3. Use multiple regressions to estimate demand functions. 4. Calculate, interpret and apply varied demand elasticities. 5. Compute total and marginal revenue given a demand curve. 6. Use a variety of business and economic forecasting techniques. 7. Apply economic theory and statistical analysis to better manage export sales, import purchases, and exchange rate risk. 8. Analyze a variety of production functions. 9. Use multiple regressions to estimate production functions. 10. Determine the optimal combination of inputs. 11. Estimate, interpret, and apply short and long run cost functions. 12. Use linear programming for profit maximization and cost minimization problems. 13. Estimate learning curve parameters. 14. Construct optimal price and output strategies for purely competitive, monopolistically competitive, oligopolistic, and monopolistic markets. 15. List tactics for varied asymmetric information scenarios. 16. Use best-practice tactics using game-theoretic rivalry. 17. Analyze and determine likely impacts of varied organizational forms, governance and mechanism designs. 18. Evaluate and determine the impacts of varied pricing techniques (value-based, differential, price discrimination, multiple products, joint products, and transfer pricing). 19. Explain the economics of and tools used for revenue management. 20. Cite important antitrust legislation and their related economic arguments. 21. Discuss the economics of market failure. 22. Use economic theory and statistics to make improved long-term investment decisions. 23. Use microeconomic theory and statistical methods to model, explain, and predict firm and industry level economic phenomena. 24. Communicate economic principles, problems, and solutions in a concise, understandable, and professional manner.

IV. TEXTBOOK AND OTHER LEARNING RESOURCES

Required Materials Textbooks

Salvatore, Dominick. Managerial Economics in a Global Economy. (8th ed.) New York, NY: Oxford University Press, 2015. ISBN 978-0-19-939712-9.

Wheelan, Charles. Naked Economics: Undressing the Dismal Science. New York, NY: W.W. Norton and Company Inc., 2002, ISBN: 0-393-32486-9.

V. POLICIES AND PROCEDURES

A. Universities Policies and Procedures 1. Attendance at each class or laboratory is mandatory at Oral Roberts University. Excessive absences can reduce a student’s grade or deny credit for the course. 2. Students taking a late exam because of an unauthorized absence are charged a late exam fee. 3. Students and faculty at Oral Roberts University must adhere to all laws addressing the ethical use of others’ materials, whether it is in the form of

print, electronic, video, multimedia, or computer software. Plagiarism and other forms of cheating involve both lying and stealing and are violations of ORU’s Honor Code: “I will not cheat or plagiarize; I will do my own academic work and will not inappropriately collaborate with other students on assignments.” Plagiarism is usually defined as copying someone else’s ideas, words, or sentence structure and submitting them as one’s own. Other forms of academic dishonesty include (but are not limited to) the following: a. Submitting another’s work as one’s own or colluding with someone else and submitting that work as though it were his or hers; b. Failing to meet group assignment or project requirements while claiming to have done so; c. Failing to cite sources used in a paper; d. Creating results for experiments, observations, interviews, or projects that were not done; e. Receiving or giving unauthorized help on assignments. By submitting an assignment in any form, the student gives permission for the assignment to be checked for plagiarism, either by submitting the work for electronic verification or by other means. Penalties for any of the above infractions may result in disciplinary action including failing the assignment or failing the course or expulsion from the University, as determined by department and University guidelines. 3. Final exams cannot be given before their scheduled times. Students need to check the final exam schedule before planning return flights or other events at the end of the semester. 4. Students are to be in compliance with University, school, and departmental policies regarding Whole Person Assessment requirements. Students should consult the Whole Person Assessment handbooks for requirements regarding general education and the students’ majors. a. The penalty for not submitting electronically or for incorrectly submitting a Whole Person Assessment artifact is a zero for that assignment. b. By submitting an assignment, the student gives permission for the assignment to be assessed electronically.

B. Course Policies and Procedures

1. Evaluation Procedures a. Point Distribution Mid-Term Exam 150 Final Exam 150 Exercises and Quizzes 200 Group Research Project 100 Total Course Points: 600

b. Grading Scale 540 - 600 points => 90-100% = A 480 - 539 points => 80-89% = B 420 - 479 points => 70-79% = C 360 - 419 points => 60-69% = D Below 360 points => 0-59% = F c. Exams consist of questions over the text, handouts, and class lectures. . Any disputes regarding exam questions or grades must be submitted in writing. Students should indicate the accepted response, his or her response, and justification for the accuracy of his or her response. d. Exams must be taken on the assigned date. If extenuating circumstances arise and the professor is notified at least 24 hours in advance, a make-up exam may be scheduled. Those students who are ill the day of the exam must notify the department secretary by phone (x6555) prior to the time of the exam. A doctor's written excuse at the time the student returns to the classroom is required to schedule a make-up exam. Failure to comply with these rules results in a student forfeiting the right to take a make-up exam. e. Each student is placed in a team with at least one other student to complete group assignments for this course. f. The Group Research Project requirements are detailed in class and on D2L. g. Exercises and Quizzes are based on assignments and in-class activities. When indicated by the instructor, assignments, texts and activities may reflect group work. 2. Whole Person Assessment Requirements - none 3. Other Policies and/or Procedures Office hours are announced in class and posted on the professor’s door. Professor’s Name: Dr. James R. Russell Office: Graduate Center 3F02 Telephones: 918-495-6551

VI. COURSE CALENDAR

Week Topic Chapter 1 The Nature and Scope of Managerial Economics 1

2 Demand, Supply, and Equilibrium Analysis 2

3 Optimization Techniques and New Management Tools 3

4 Demand Theory 4

5 Demand Estimation 5

6 Demand Forecasting 6

7 Mid-Term Exam 1-6

8 Production Theory and Estimation: 7

9 Cost Theory and Estimation: 8

10 Market Structure: Perfect Competition, Monopoly, and Monopolistic Competition 9

11 Spring Break

12 Oligopoly and Firm Architecture 10

13 Game Theory and Strategic Behavior 11

14 Pricing Practices 12

15 Regulation and Antitrust: The Role of Government in the Economy 13

16 Final

17 Group Presentations

Course Inventory for ORU’s Student Learning Outcomes

Managerial Economics GBUS 582 Spring 2016

This course contributes to the ORU student learning outcomes as indicated below: Significant Contribution – Addresses the outcome directly and includes targeted assessment. Moderate Contribution – Addresses the outcome directly or indirectly and includes some assessment. Minimal Contribution – Addresses the outcome indirectly and includes little or no assessment. No Contribution – Does not address the outcome. The Student Learning Glossary at http://ir.oru.edu/doc/glossary.pdf defines each outcome and each of the proficiencies/capacities.

Significant Moderate Minimal No OUTCOMES & Proficiencies/Capacities Contribution Contribution Contribution Contribution

1 Outcome #1 – Spiritually Alive Proficiencies/Capacities 1A Biblical knowledge x 1B Sensitivity to the Holy Spirit x 1C Evangelistic capability x 1D Ethical behavior x

2 Outcome #2 – Intellectually Alert Proficiencies/Capacities 2A Critical thinking x 2B Information literacy x 2C Global & historical perspectives x 2D Aesthetic appreciation x 2E Intellectual creativity x

3 Outcome #3 – Physically Disciplined Proficiencies/Capacities 3A Healthy lifestyle x 3B Physically disciplined lifestyle x

4 Outcome #4 – Socially Adept Proficiencies/Capacities 4A Communication skills x 4B Interpersonal skills x 4C Appreciation of cultural & linguistic differences x 4D Responsible citizenship x 4E Leadership capacity x