◙  Objectives of the Course This course is designed to show the ways in which modern economics can be used to manage a business enterprise. It discusses the demand for the firm’s products, how to organize production within the firm, the effects on costs, and the firm’s inputs as well as output decisions. The course pays special attention to sophisticated strategies both towards customers and towards rival firms, and organizational structures. Other topics include vertical relationships, personnel economics, and the impacts of national and international economic conditions on the firm. ◙  Prerequisites Students must have had some college-level survey (or principles) of economics (for instance EC 523 and EC 524 offered at Wright State University) . Basic college algebra (solving systems of simultaneous equations) is also a must. Prior exposure to elementary calculus is desirable but not necessary. The real prerequisite is a desire to learn, a willingness to work hard, and some demonstrated enthusiasm for the subject. ◙  Textbook Required: Tran Huu Dung, Economics for Managers (2002 Edition) TO BE DISTRIBUTED IN CLASS NOTE: Previous edition is not acceptable. ◙  Class Rules Exams One mid-term exam 50% One final exam 50% Type: Variety of Questions and Problems Coverage: Textbook and lectures Class Participation Students MUST read the assigned material before coming to class. Attendance Policy Regular class attendance is indispensable. A huge amount of interesting (and sometimes difficult) material will be covered in class. Missing class is missing a lot. Indeed, if you expect to be absent in more than one session, you might consider taking this course some other time. Remember: The class needs you as much as you need the class. Retake Policy Retakes are not allowed. Makeup Policy Requests for makeups must be made before the scheduled exam times. ◙  Grading Policy The final grade will be based on the final and the midterm. A: 90-100 B: 75-89 C: 60-74 D: 50-59 F: < 50 Since class participation is crucial for this course, NO STUDENT will get an A (regardless of exam score) if he/she misses three or more class sessions. There is NO exception to this rule. ◙   Summer 2003 Schedule (tentative) You should read the assigned material before class and make an honest attempt at the exercises prior to the next class. In addition to the weekly assignments below, you should read the business sections of the local newspapers, the Wall Street Journal, Business Week, and The Economist, and prepare to contribute intelligently to in-class discussion of current topics.  NOTE:  THIS SCHEDULE IS THE MOST RECENT AND SHOULD REPLACE THE PRINTED VERSION HANDED OUT AT THE START OF THE QUARTER SESSION DATE TOPIC CHAPTER NOTES 1   Introduction Demand and Supply -  Guide Chapter 1 Chapter 2 Preface, Elasticities 2   Demand and Supply Production and Costs - Guide Chapter 2 Chapter 3 - How to add demand 3   Production and Costs Chapter 3   4   Profit Maximization - Guide Chapter 4 Break-even Analysis 5   MIDTERM EXAM (75 min) Markets without Rivalry Exam coverage: Ch. 1-4 Chapter 5 -   6   Strategies toward Customers (I) Chapter 6   7 M 7/7 Strategies toward Customers (II) - Guide Chapter 6   8 W 7/9 Strategies toward Rivals - Guide Chapter 7 Game Theory 9 M 7/14 Vertical Relationships - Guide Chapter 8   10   Personnel Economics Chapter 10     W 7/16 FINAL EXAM (7:45-9:45) Exam coverage: Ch. 6-10

      
STUDY GUIDE CHAPTER 2:

1.  D (does not satisfy the law of demand)
2.  C
3.  D (pkug in the given values for all variables except P_X
4.  C
5.  A (Price drops but TR increases)
6.  A
7.  E
8.  B
9. B
10.  B (because demand is inelastic in that range)
11. B
12. D
13. B

STUDY GUIDE CHAPTER 3:

1. B	2.  A	3.  C	4.  A	5.  A	6.   B	7.  B	8   D	9.  C	10.  B
11.  D	12.  B	13.  C	14.  B	15.  E	16.  B	17.  A	18.  B	19.  B	20.  B

STUDY GUIDE CHAPTER 4

1.   D	2.  D	3.  C	4.   C	5.  C	6.  D	7.  A	8.  A
9.  B	10.  A	11.  C	12. $4	13.  A	14.  A	15.  B	16.  D

 

ANSWERS TO TRUE-FALSE QUESTIONS, CHAPTER 2

1.  True
2.  False
3.  False [the elasticity of demand would be 2, and it's elastic]
4.  False [price always varies inversely with quantity demanded, whether demand is elastic or inelastic]
5.  False [Normal goods are defined according to the income elasticity of demand, not to the price elasticity of demand]
6.  False [there is noreason why they should be equal]
7.  True
8.  True [the law of demand may not hold for some inferior goods]
9.  False
10. False [inferior goods are goods whose demands actually DECREASE when income increases]
11. True
12.  False [if the producer of a product complementary to ours raises his price, the quantity demanded for his product would go down, which would reduce the demand for our product]

 

STUDY GUIDE CHAPTER 6

1.   D	2.  C	3.  C	4.   B	5.  B	6.  B	7.  D	8.  A
9.  A	10.  B	11.  B	12. P1= 6 P2 = 5	14.  E	15.  C	16.  B	16.  C

STUDY GUIDE CHAPTER 7: In Study Guide

STUDY GUIDE CHAPTER 8 - In Study Guide