ECO-607-01 Managerial Economics- CRN:12813

Fall 2013

ECO-607-01 Managerial Economics- CRN:12813

Graduate Course: Graduate Managerial Economics

COURSE SYLLABUS

DR. REZA HAMZAEE

BOG-Distinguished Professor of Economics

Missouri Western State UniversityOffice: PH 212-C

Department of Economics, Pol. Sc. & Soc.Office Phone:271-4262

Home Phone:913-912-1773

E-Mail:

Teaching & Office Hours Schedule

COURSE / MONDAY / TUESDAY / WEDNESDAY / THURSDAY / FRIDAY / BLDG-Room
ECO 363-Sec. 01
Schedule Line #
12663 / 3:30-4:50 / 3:30-4:50 / PH 204
ECO 460-Sec. 01
Schedule Line #
12665 / 11:00-12:20 / 11:00-12:20 / PH 204
Graduate Course
ECO 607
Sec. 1
Schedule Line #
12813 / 6:30-9:20 / PH 204
Office
Hours* / 12:30-3:30 / 12:30-2:30 / PH 212-C

*If the above office hours may not match with your free time, make an appointment in advance.

TESTS AND FINAL EXAM SCHEDULE

COURSE / TEST (I) / TEST (II) / TEST (III) / TEST (IV)
FINAL EXAM
ECO 363-Sec. 01
Schedule Line #
12663 / Thursday, Sep 26 / Thursday, Oct 24 / Tuesday, Dec 3 / Thursday, Dec. 12:
2:00 - 3:50 p.m.
ECO 460-Sec. 01
Schedule Line #
12665 / Thursday, Sep 26 / Thursday, Oct 24 / Tuesday, Dec 3 / Tuesday, Dec. 10:
11:30 a.m. – 1:20 p.m.
Graduate Course
ECO 607
Sec. 01
Schedule Line #
12813 / Tuesday, Sep 24 / Tuesday, Oct 22 / Tuesday, Dec 3 / Tuesday, Dec. 10:
6:30 – 8:20 p.m.
Fall Semester 2013
Saturday, December 7 through Friday, December 13
Classes whose first meeting of each week is on Monday or Wednesday:
Class Time / Final Exam Date / Final Exam Time
8:00 a.m. / Wednesday, December 11 / 8:30 - 10:20 a.m.
9:00 a.m. / Friday, December 13 / 8:30 - 10:20 a.m.
10:00 a.m. / Monday, December 9 / 8:30 - 10:20 a.m.
11:00 a.m. / Friday, December 13 / 11:30 a.m. - 1:20 p.m.
12:00 noon / Wednesday, December 11 / 11:30 a.m. - 1:20 p.m.
1:00 p.m. / Monday, December 9 / 11:30 a.m. - 1:20 p.m.
2:00 p.m. / Wednesday, December 11 / 2:00 - 3:50 p.m.
3:00 p.m. / Friday, December 13 / 2:00 - 3:50 p.m.
4:00 p.m. / Monday, December 9 / 2:00 - 3:50 p.m.
Classes whose first meeting of each week is on Tuesday or Thursday:
Class time / Final Exam Date / Final Exam Time
8:00 a.m. / Tuesday, December 10 / 8:30 - 10:20 a.m.
9:30 a.m. / Thursday, December 12 / 8:30 - 10:20 a.m.
11:00 a.m. / Tuesday, December 10 (ECO 460) / 11:30 a.m. - 1:20 p.m.
12:30 p.m. / Thursday, December 12 / 11:30 a.m. - 1:20 p.m.
2:00 p.m. / Tuesday, December 10 / 2:00 - 3:50 p.m.
3:30 p.m. / Thursday, December 12 (ECO 363) / 2:00 - 3:50 p.m.
6:30 p.m. / Tuesday, December 10 (ECO 607) / 6:30 – 8:20 p.m.

2013 Fall Semester Academic Calendar

March 27...... (Wednesday)...... Advisement begins

April 1...... (Monday)...... Registration begins

August 20...... (Tuesday)...... Walk-In Registration

August 26...... (Monday)...... Classes Begin

August 26-30...... (Monday-Friday)...... Late Registration/Add Period

August 30...... (Friday)...... Last day to change from “audit” to “credit”

September 2...... (Monday)...... Labor Day (no classes)

September 3...... (Tuesday)...... Withdrawal period begins (“W” recorded on transcript)

September 20...... (Friday)...... Last day to choose A/CR/U (Pass/Fail) Option

October 23...... (Wednesday)...... Mid-term grades due

October 30...... (Wednesday)...... Spring advisement begins

November 1...... (Friday)...... Deadline for Spring graduation application

November 1...... (Friday)...... Last day to withdraw (“W” recorded on transcript)

November 1...... (Friday)...... Last day to change from “credit” to “audit”

November 4...... (Monday)...... Registration begins for Spring

Nov 24 - Dec 1...... (Sunday-Sunday).....Fall Break (no classes)

December 6...... (Friday)...... Last day of classes

December 7-13...... (Saturday-Friday)...... Final Exams

December 14...... (Saturday)...... Commencement

December 17...... (Tuesday)...... Final grades due

All tests, including final exams, will be given in the regular classrooms. All tests for ECO 260 will be of multiple-choice type, and essay for ECO 363 and ECO 607. Final exams for all classes will be comprehensive covering the whole materials taught during the semester.

2.The Text & articles:

Managerial Economics and Business Strategy, Michael R. Baye, McGraw-Hill Irwin, 6th Edition, 2009, or the latest. ISBN – 978 – 0 - 07- 337568 -7, or the latest edition, if available.
The Wall Street Journal (Newspaper)
“Minimum wage hike works: Conservatives Can Embrace Missouri’s New Minimum Wage Law,” Reza G. Hamzaee, St. Joseph (Mo.) News-Press, December 17, 2006, p. A6.
On Managing Water Prices: "An Empirical Examination of the Demand for Water in a Midwestern City," Reza G. Hamzaee,Regional Business Review, Northwest Missouri State University, Maryville, Missouri, May 1997, pp. 63-80.

3.Recommended (Not required) References:

"Modern Banking & Strategic Portfolio Management," Reza G. Hamzaee , The Journal of Business & Economics Research (JBER), coauthored by Bob Hughs (2nd author), volume 4, No. 11, November 2006, pp. 85-95.

“A Collective Airport - Airline Efficiency Strategic Model,” Reza G. Hamzaee , and Bijan Vasigh, The International Journal of Applied Management and Technology, volume 4, No. 1, May 2006, pp.67-78.

“The Environmental-Economic Effects of Landfill Expansion on a Nearby Community,” Reza G. Hamzaee, The Scholar-Practitioner, May 2006, USA.

“A Survey & a Theoretical Model of Distance Education Program,” Reza G. Hamzaee, International Advances in Economic Research, volume 11, No. 2, May 2005, pp. 215-229.

“Testing Sensitivity of Student Enrollment with Respect to Tuition at an Institution of Higher Education,” Reza G. Hamzaee, International Advances in Economic Research, Volume 10, No. 2, May 2004, pp. 133-149.

"The Economic Conditions and the Housing Markets", Reza G. Hamzaee, National Social Science Journal, 1991, on reserve on the MWSC Library.

The Economist (A British economic magazine)

U.S.A. Today (Newspaper)

4.Additional Reading Materials:

i.The class notes

ii.Reading Assignments (lists of questions provided by the instructor on each covered chapter and designated materials) to lead you to study more efficiently.

iii.Occasional assignments on (external) hot issues.

5.Grading Policy:

Your grades will be determined competitively (i.e. will be curved) based on 3 tests, the final exam, a team-term project, and your class participation in the following manner:

Midterm Exam:100 points
Applied Research, applying critical thinking:100 points
Comprehensive Final Exam (applying critical thinking)150 points
Class Attendance, quizzes, test preps discussions,

applying critical thinking 60 points

Total possible for the course:410 points

The comprehensive final exam will be made on three parts of the course materials in the following credit order:

i.20 credit points allocated to part one (covered for the midterm exam)

ii. 10 credit points allocated to the Applied Research material

iii. 120 credit points reserved for material taught after the midterm, excluding Applied Research material.

6.Online Class Attendance:

Consulting with my statistical results on the correlation between students’ grades and their participation, I am quite convinced that although class participation is not a sufficient condition to do well in a class after all, it is certainly a necessary condition. In one of my statistical surveys, I found that 95% of the students, who had not participated regularly in their corresponding classes, could not earn any grades close to “C” or above it.

Since I really want to see all of you excel in this class, I have allocated 60 credit points for your regular class participation, discussions, quizzes, etc. If you do not participate regularly, you are going to take less of the designated points. Participation credit will include taking of unannounced quizzes and test preparations within a period of 2-3 days, which cannot be postponed.

7. Regular Class Participation:

Students are expected to do all the required activities within the designated deadlines as will be described later. What is considered as class attendance is simply an effective attendance including participation in discussions, communication with other members of the class, and, if the course is online, taking of unannounced quizzes and test preparations within a period of 2-3 days, which cannot be postponed.

Grading Guide (Adopted from: Foundation for Critical Thinking Press, 2007)

First Part of the Test: Analysis of Reasoning (each item 0-10 points) Total Points Possible: 80:
0 – 2 points – unacceptable analysis (unskilled)
3 – 4 points – low level analysis (minimally skilled)
5 – 6 points – mixed level analysis (beginning skills)
7 – 8 points – commendable analysis (skilled)
9 – 10 points – excellent analysis (highly skilled)
Second part of the Test. Evaluation of Reasoning (grade holistically) Total Possible Points: 20:
0 – 4 points – unacceptable evaluation (unskilled)
6 – 8 points – low level evaluation (minimally skilled)
10 – 12 points – mixed level evaluation (beginning skills)
14 – 16 points – commendable evaluation (skilled)
17 – 20 points – excellent evaluation performance (highly skilled)

To earn an “A” grade, one must demonstrate the following (Grading the ICAT Test, 2007):

Excellence in thinking and performance

A clear development of a range of knowledge acquired through the exercise of thinking skills and abilities
A clear, precise, well-reasoned, and insightful writing and communication
Good command of basic terms and distinctions at a high level which implies insight into basic concepts and principles
Internalization of the basic intellectual standards appropriate to the assessment of his/her own work in a subject and demonstrates insight into self-evaluation
Frequently raising important questions and issues, analyzing key questions and problems clearly and precisely
Recognizing key questionable assumptions, clarifying key concepts effectively
Using language in keeping with educated usage
Frequently identifying relevant competing points of view
A commitment to reason carefully from clearly stated premises in the subject, as well as marked sensitivity to important implications and consequences
Excellent reasoning and problem-solving within a field.

Grade Appeal Process (according to MWSU’s Academic Policies)

Effective: 07/01/2010

Students are responsible for meeting the standards for academic performance established

for each course in which they are enrolled. The establishment of the criteria for grades

and the evaluation of student academic performance are the responsibilities of the

instructor delegated by this University.

The grade appeal procedure is available for the review of allegedly capricious grading or

clerical error by the instructor and not for the purpose of evaluating the student’s

academic excellence in any particular course. Capricious grading, as the term is used

here, consists only of any of the following:

• the assignment of a grade to a particular student on some basis other than the

performance in the course;

• the assignment of a grade to a particular student by resorting to more exacting or

demanding standards than were applied to other students in the course;

• the assignment of a grade by a substantial departure from the instructor’s

previously announced standards.

Student Appeal Process

Step One- The student must discuss the course grade fully with the instructor of the

course. This must be done no later than thirty (30) calendar days into the

succeeding regular academic semester, beginning with the first day of classes.

Step Two- If the student desires to appeal the grade further, he or she may utilize the

departmental/school grade appeal procedure.

Every academic unit must have a set of grade appeal procedures which are to be

made available to student upon request; copies of those procedures are to be on

file in the office of the relevant academic Dean and the Provost and Vice

President for Academic Affairs. The challenge must be made in writing to the

appropriate departmental chairperson/school dean. The appeal must be made no

later than ten (10) calendar days after the aforementioned thirty (30) day deadline.

The departmental chairperson/school dean shall notify the student, in writing, of

the department’s/school’s decision within thirty (30) calendar days of receipt of

the written appeal.

Step Three- If the appeal is not resolved at the departmental/school level, the student may

appeal to the Academic Regulations and Standards Committee in accordance with

its rules and regulations. This appeal must be made in writing no later than ten

(10) calendar days after receipt of the departmental/school decision. The student

must submit his/her written appeal to the department chairperson/school dean and

request that the appeal and any relevant documents regarding the case be sent to

the chairperson of the Academic Regulations and Standards Committee.

Examples of relevant documents include, but are not limited to: (1) course

syllabi, (2) course assignments, (3) the graded work of the appellant, and (4)

samples of the graded work of other students who were in the same course as the

appellant. The department chairperson/school dean will obtain all relevant

documents from the course instructor and forward them to the committee

chairperson within ten (10) calendar days of the student’s request. The course

instructor is expected to comply with all requests for relevant documentation from

his/her department chairperson/school dean. Upon review of the evidence, the

committee may request any additional information that it deems necessary from

the appellant and the course instructor. The committee chairperson will forward

the request for additional information to the appellant and to the department

chairperson/school dean. The appellant and the department chairperson/school

dean must provide the additional material to the committee chairperson within

five (5) calendar days of the committee’s request. Furthermore, the committee

may wish to interview any of the parties involved in the appeal. If so, the

committee chairperson will notify the parties to schedule the interview. The

course instructor and the appellant are expected to comply with all requests for

additional information and interviews.

The committee chairperson will notify the student of the committee’s decision in

writing, within thirty (30) calendar days of receipt of the written appeal. This

notification will be delivered by regular mail to the postal address on file for the

student and by e-mail to the student’s university e-mail address. The committee

chairperson will also notify the course instructor, the department

chairperson/school dean, the relevant academic dean, the Provost and the

Registrar of the committee’s decision. This notification will be transmitted to

these individuals by campus e-mail.

If the committee determines that the student’s grade ought to be changed, the

committee chairperson must submit a Revised Grade Report Form to the

Registrar’s Office. The Registrar will modify the student’s transcripts within ten

(10) calendar days after receipt of the form from the committee chairperson. The

decision of the Academic Regulations and Standards Committee is final.

The grade appeal process shall be complete within the semester succeeding the

awarding of the original grade.

It is the responsibility of the student to initiate the grade appeal process.

8.Academic Honesty Policy and Due Process:

Academic honesty is required in all academic endeavors. Violations of academic honesty include any instance of plagiarism, cheating, seeking credit for another’s work, falsifyingdocuments or academic records, or any other fraudulent activity. Violations of academic honesty may result in a failing grade on the assignment, failure in the course, or expulsion from the University. When a student’s grade has been affected, violations of academic honesty will be reported to the Provost or designated representative on the Academic Honesty Violation Report forms.

9.Course Objectives:

Learning Managerial Economics
Learn how to apply economic critical thinking in confronting managerial issues
Learn various business and economic strategies in various market circumstances
Learn key terms and concepts
Understand conceptual and computational cases
Learn about some of the relevant managerial economic problems, solutions, and applications
Learn some case-based exercises
Learn about some applied research work in the field of Managerial Economics
Simplifying the comprehension of economic subjects in order to enjoy-not hate economics!!!

10.Handicapped Students:

Any student in this course who has a disability that prevents the fullest expression of abilities should contact me personally as soon as possible so that we can discuss class requirements and accommodations.

11.FINAL GRADES:

DUE TO THE PRIVACY ACT, GRADES WILL NOT BE POSTED IN THE DEPARTMENT OF ECONOMICS. THE DEPARTMENT OFFICE PERSONNEL ARENOT PERMITTED TO DISCLOSE GRADES.

12.Course Outline

Introduction

The Fundamentals of Managerial Economics, text, chapter 1
Market Forces: Demand and Supply, text, chapter 2

a. Some Basic Mathematical Review

B. Economics Basics Review: Theories of Demand and Supply

“Minimum Wage Hike Works: Conservatives Can Embrace Missouri’s New Minimum Wage Law,” Reza G. Hamzaee, St. Joseph (Mo.) News-Press, December 17, 2006, p. A6.

Applied Managerial Analysis

The Demand Theory & Business Application:

Quantitative Demand Analysis, text, chapter 3

a. Formulating a demand function based on the theory and application

b. Price Elasticity of Demand & Supply

“Testing Sensitivity of Student Enrollment with Respect to Tuition at an Institution of Higher Education,” Reza G. Hamzaee, International Advances in Economic Research, Volume 10, No. 2, May 2004, pp. 133-149.
“An Empirical Examination of the Demand for Water in a Midwestern City,” Reza G. Hamzaee, Regional Business Review, Northwest Missouri State University, Maryville, Missouri, May 1997, pp. 63-80.

The Consumer Behavior & Business Application:

Utility, and Utility Maximization
The Theory of Individual Behavior, chapter 4
“The Environmental-Economic Effects of Landfill Expansion on a Nearby Community,” The Scholar-Practitioner, Reza G. Hamzaee, May 2006, USA.

Business Application of The Firm Theory:

A Review of Principles and Theory of Price
The Production Process and Costs. Text, chapter 5
The Organization of the Firm, text, chapter 6
The Nature of Industry, text, chapter 7
Managing in Competitive, Monopolistic, and Monopolistically-Competitive Markets, text, chapter 8

Analyses of Some Selected Industries: Banking, Airlines, and Aircraft

A Review of Principles and various market structures
Basic Oligopoly Models, text, chapter 9
Game Theory: Inside Oligopoly, text, chapter 10
Pricing Strategies for Firms with Market Power, text, chapter 11
“Comparative Analysis of Economic Performances of U.S. Commercial Airports,” Reza G. Hamzaee, and Bijan Vasigh, Journal of Air Transport Management, Center for Transportation, George Mason University, October 1998, Vol. 4, Issue 4, pp. 209-216.
“An Applied Model of Airline Revenue Management,” coauthored by Bijan Vasigh (second author), Journal of Travel Research, University of Colorado, Boulder, Colorado, Spring (May) 1997, vol. xxxv, No. 4, pp. 64-68.

13. How to Make a High Score on Your Research Paper

Research Paper Assessment Criteria:

Routinely ask questions (Paul & Elder, 2006, Idea # 25, pp. 37-38)* while focusing on the following points (in class discussions and on the test):

Research problem motivating the research effort
Purpose (of the chapter, function of a system)
Questions (key questions emerging) to be answered by the research
Information (what information, what sources, and credibility of information)
Inference (logical conclusions based on the aforementioned information)
Assumptions (the type and the acceptability of the adopted assumptions)
Concepts (key concepts and how to elaborate them)
Implications (given the credibility of the issues and conclusions, what are the corresponding implications for one’s real life issues)
Point of view (The authors’ point of view is one not the only one necessarily)
Avoidance of Risk (how could these ideas be possibly wrong?)
What societal change implications would be applied? What major problems would be eliminated or alleviated?

Grading Method: