ECO 467-02: Managerial Economics

Fall, 2002

Dr. Donald G. Freeman                                                             Office: SHB 210-A
Phone: 294-1264                                                                      Hours: MW: 1:00 - 3:30 p.m.
email:                                                                     TTh: 9:30 -11:00 a.m.;
Homepage:                                                           2:00-3:30 p.m.

Course Description:

An integration of economic tools of analysis with optimization techniques such as calculus, LaGrangian multipliers and linear programming. Additionally, students are exposed to risk analysis  and decision-making under uncertainty, inventory control, profitability analysis, and capital budgeting. Prerequisites: ECO 230 or 233, BAN 232, FIN 367.

Course Objectives:

Upon completion of the course, the participant will be able to:

1. Apply the concepts, theories and methods of microeconomic analysis to real world examples.
2. Explain how business firms decide what is produced, how it is produced, and what to charge for it.
3. Describe how economic agents make decisions in order to maximize objectives given scarce resources.

Text: McGuigan, Moyer, and Harris, Managerial Economics, Ninth Edition


Grades will be computed from scores on 13 weekly quizzes, plus a final "replacement" exam. Each weekly quiz, consisting of 10 multiple choice questions/problems, will be worth 100 points, for a total possible score of 1300 points. The final, which is optional, will allow you to "replace" up to four of your quiz grades. It is your responsibility to keep track of your quiz grades and to inform me prior to the final which quiz grades you want to replace. This means that a quiz missed for any reason will automatically be a candidate for replacement (in other words, no make-ups), so plan your emergencies carefully. There is no "curve," no extra credit, no brownie points, no bonus points for showing up and/or looking good. Quizzes may have bonus questions for extra points, however.

Grading Scale:

A: 1170-1300 points                         C: 910-1039 points
B: 1040-1169   ""                              D: 780-909    " "


Is required. Recent studies indicate that regular attendance may make a difference of at least one letter grade in your final average.

Student Absences on Religious Holy Days:

Students who are absent from class for observance of a religious holy day will be allowed to take an examination or complete an assignment scheduled for that day within a reasonable amount of time. The student, no later than Friday, September 6, must notify the instructor of each scheduled class day that he/she will be absent for a religious holy day.


It is my intention to treat you with dignity and respect. I will do my best to be on time for class, to be prepared for class, and to be scrupulously fair in assessing your grades. In return, I also expect to be treated with respect. Therefore, I remind you that eating, drinking or dipping in class are not permitted. Also, as a personal request, unless there are religious reasons for doing so, there will be NO HEADGEAR worn in class at any time. Further, if you must leave in the middle of class, please take your things and do not re-enter; you will only be disturbing the class for a second time. Finally, if you must be late, please enter quietly and sit by the door.


Will be mainly end of chapter problems, with some supplemental assignments. Homework will not be collected, but will be worked in class. This puts the burden on you to do the homework. Because the quiz problems will closely resemble the homework problems, doing the homework will put you at a distinct advantage.

Disabled Student Policy:

It is the policy of Sam Houston State University that no otherwise qualified disabled individual shall, solely by reason of his/her handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any academic, Student Life Program, or activity. Disabled students may request help with academically related problems stemming from individual disabilities from their instructors, department/division chairs, or by contacting Dr. Patsy Copeland, Chair of the Committee for Continuing Assistance for Disabled Students and Director of the Counseling Center, Lee Drain Annex, or by calling (936) 294-1720

TENTATIVE SCHEDULE (Quiz Dates are Firm)

Week  Beginning                     Quiz Grade    Date                                    Topic                                                                     Chapter

08/18                                                                                                        Introduction                                                                 1
                                                                                                                 Scarcity and Choice

08/25                                       _____         08/29                                     Optimization theory                                                       2,
                                                                                                                                                           Web chapter 1:
                                                                                                                                                                    or SHSU Library Electronic Reserves

09/01                                       _____         09/05                                     Optimization continued

09/08                                       _____         09/12                                     Demand Analysis                                                         3

09/15                                       _____         09/19                                     Demand Analysis, continued

09/22                                       _____         09/26                                     Cost Analysis                                                               8

09/29                                       _____        10/03                                     Applications of Cost Theory                                         9

10/06                                       _____         10/10                                    Competition                                                                 10
Fri., Oct 11: Last day to drop with a "W"

10/13                                      _____         10/17                                   Asymmetric Information                                                 11

10/20                                      _____         10/24                                     Monopoly                                                                     12

10/27                                      _____         10/31                                     Monopoly, cont.

11/03                                                                                                       Oligopoly                                                                       13

11/10                                     _____         11/12                                      Game Theory                                                                 14

11/17                                     _____         11/19                                      Pricing Techniques                                                         16

11/24                                     _____         11/26                                     Government Regulation                                                   17

12/01                                                                             Final Exam (Tues, Dec 4) or (Thurs, Dec 12)