MBA Syllabus: Managerial Economics Department of Finance & Economics College of Industrial Management
Year 2014-2015 (141)
Assistant Professor: Dr Reza F. Aghdam Office: Room 215, Building 24; Phone: 03 860 7525; Email: rezafa@kfupm.edu.sa Course Description: This course basically is about the application of economics in various economic problems that managers often face in real world business. In this respect, the course presents how principles of economics (predominantly microeconomics) can be used for achieving sound managerial decisions that would lead to efficient allocation of resources, mainly through implementing appropriate corporate planning strategies and effective tactics.
Course Objectives: Upon competition of this course, students should be able to understand and analyze basics of: demand function, applying some empirical estimation techniques and making sound demand-side forecasting; production, cost and supply functions; output and pricing decisions; efficiency and productivity (and techniques for measuring them); business condition and environment (e.g., trends, cycles and seasonal effects); markets of factors of productions (e.g., labor, capital, and natural resources); and competitors behaviors under various market structures.
Textbook: James McGuigan, Charles Moyer and Fredrick Harris (2011) Economics for Managmers 12 th
COELLI, PRASADA RAO, and BATTESE, (2005) An introduction to efficiency and productivity analysis, 2 nd edition, Boston, Springer ( This will be provided to Students. A limited chapters will be covered as a part of the course)
Further Readings: Thais Ten Raa (2013) Microeconomics: Equilibrium & Efficiency Palgrave macmillan
Evaluation Arrangement: Major1 (Week 6) Tuesday 28 Oct 2014 (Class @ 18:30) 30% Five Chapters (1-5) Major2 (Week 11) Tuesday 25 Nov 2014 (Class @ 18:30) 30% Five Chapters (7-9 mixing with Chapter 3 and 5 of Coelli et al 2005) Final Exam Tuesday 30 Dec 2014 (TBA; 19:00) 25% Four Chapters (11-14) Term Project & Presentation 10% Other Assignments (including in-class tests) 5%
Total 100% Rezafa
Exams will be a mix of both multiple choice and essay questions. Term paper topic must be approved by the instructor by week 6. Term paper is a major project, and it is expected that students will spend quality time to write the paper. Paper presentation is required. A term paper submitted without presentation will receive a zero grade. Final version of the paper must be submitted in Turnitin website for plagiarism check. Topics must relate to the subject matter of this class. Class participation is highly encouraged. An MBA class should be full of live real life discussions. Weekly Chapter Topic Outline: Week 1 Chapter 1 Introduction Week 2 Chapter 2 Fundamental Economic Concepts Week 3 Chapter 3 Demand Analysis In-Class Test: Chapters 1-3; Sunday 21 Sep 2014 (Class @ 18:30) Week 4 Chapter 4 Estimating Demand Week 5 Chapter 5 Demand-side forecasting Week 6 1 st Major Exam Tuesday 28 Oct 2014 (Class @ 18:30) Approval of Term Papers Week 7 Chapter 7 Production Economics Week 8 Chapter 8 Cost Analysis Week 9 Benchmarking; Input-Output Model & measuring efficiency and productivity Week 10 Benchmarking; Input-Output Model & measuring efficiency and productivity Week 11 2 nd Major Exam Tuesday 25 Nov 2014 (Class @ 18:30) Discussing Term Papers Week 12 Chapter 10 Price, Output and Strategy: Pure and Monopolistic Competition Week 13 Chapter 11 Price and Output: Monopoly and Dominant Firm Week 14 Chapter12 Oligapoly Week 15 Chapter 13 Best-Practice Tactics: Game Theory Presentations of Term Papers Final Exam Tuesday 30 Dec 2014 (TBA; 19:00)
Electronic Resources: Weekly modules are available in my Blackboard (BB)
Consultation Hours: Class Time: UT 18:30 19:45 Office Hours: UT 19:4521:00 Other Times: by appointment via email (USE THE BB INTERNAL MAIL).
Important Note: The first three weeks will be instructed by Dr Tayseer Al-Khunaizi. A test on these materials will be conducted by Dr Al-Khunaizi as well on 21 September 2014 before Eid Holiday.