MBA 603 – Managerial Economics 
                    Basic Information 
                    Course Title:                         Managerial Economics 
                    Code:                                 MBA 603 
                    Hours:                                Lecture: 3      Credit Hours: 3 
                    Academic Year / Level:                Year: 1         Term: 1         
                            
                    1 - C o u r s e   D e s c r i p t i o n   a n d   O v e r a l l   O b j e c t i v e s :  
                    Managerial Economics is the use of economic theory and mathematical and statistical 
                    techniques in order to examine how a firm can make optimal managerial decisions given 
                    the constraints it faces. The main objective of this course is to equip students with the 
                    necessary theory and techniques and the ability to apply them in order to inform and 
                    enhance  managerial  decision  making.  Topics  covered  include:  goals  of  the  firm, 
                    optimization techniques, demand theory and estimation, forecasting and measurement, 
                    theory  of  production  and  estimation,  cost  theory  and  estimation,  pricing  and  output 
                    determination under different market structures, game theory, and pricing in practice. 
                      
                    Course Objectives: 
                     
                        A.  Use Economic tools to explain the optimal allocation of resources within the firm. 
                        B.  Use the tools of economic theory to explain optimal production and pricing 
                           decisions by the firm in each market structure 
                        C.  Apply regression analysis, estimation and forecasting, and game theory to guide 
                           managerial decision-making.  
                            
                            
                    2 - I n t e n d e d   L e a r n i n g   O u t c o m e s   o f   t h e   C o u r s e  
                    ( I L O s ) :  
                    (A) Through knowledge and understanding, students will be able to: 
                           (K1)    Define the economics way of thinking. 
                           (K2)    Define the main economic tools and theories available for decision-
                                   making policies to stabilize and stimulate the economy. 
                           (K3)    Distinguish between the different market structures and pricing practices 
                                   available to and used by firms. 
                     
                    (B) Through intellectual skills, students will be able to: 
                           (I1)    Critically assess and describe the environment and the main determinants 
                                   of demand and competition facing the firm. 
                           (I2)    Use the tools of economic theory to explain optimal production and 
                                   pricing decisions by the firm in each market structure. 
                               (I3)    Appraise some of the current and emerging issues in managerial 
                                       economics at the national and international levels. 
                                        
                                        
                                        
                                        
                                        
                                        
                                        
                      (C) Through professional and practical skills, students will be able to: 
                               (P1)    Use the tools of marginal analysis to explain the optimal allocation of 
                                       resources within the firm. 
                               (P2)    Use the tools of estimation and forecasting to support decision-making. 
                               (P3)    Use game theory to define the optimal course of action a firm can take 
                                       when dealing with competitors. 
                                        
                      (D) Through general and transferable skills, students will be able to: 
                               (G1)    Develop analytical skills related to economic theories in business contexts. 
                               (G2)    Develop business stimulation ability. 
                               (G3)    Formulate and apply the right economic tools for business decision-
                                       making. 
                                        
                                        
                      3 - C o u r s e   O u t l i n e :  
                               Week Number 1:      Introduction: What is Economics?   
                               Week Number 2:      The Firm and Its Goals  
                               Week Number 3:      Supply and Demand 
                               Week Number 4:      Demand Elasticity 
                               Week Number 5:      Demand Estimation and Forecasting 
                               Week Number 6:      Continue: Demand Estimation and Forecasting 
                               Week Number 7:      First Assessment (Lecture will continue after the assessment) 
                               Week Number 8:      The Theory and Estimation of Production  
                            Week Number 9:    The Theory and Estimation of Cost 
                            Week Number 10:   Pricing and Output Decisions: Perfect Competition and 
                                              Monopoly 
                            Week Number 11:   Pricing and Output Decisions: Monopolistic Competition and 
                                              Oligopoly 
                            Week Number 12:   Second Assessment (Lecture will continue after the assessment) 
                            Week Number 13:   Special Pricing Practices 
                            Week Number 14:   Game Theory 
                            Week Number 15:   Managerial Economics in Action 
                            Week Number 16:   Final Examination 
                    4 - T e a c h i n g   a n d   L e a r n i n g   M e t h o d s :  
                    The class will meet one a week for lecture. Some exercises will be solved in class and 
                    case studies covering the lectures will be analyzed. Students are expected to present a 
                    case analysis in class. 
                     
                    Required facilities: Overhead Projector and Data Show. 
                     
                    5 - S t u d e n t   A s s e s s m e n t   M e t h o d s ,   S c h e d u l e   a n d  
                    Grading: 
                           Assessment                                        Start     Submit      Weight 
                                No.                     Type                 Week       Week         % 
                                                                              No.        No. 
                                 1               First Assessment               1         7          30 
                                 2              Second Assessment               8         12         30 
                                 3               Final Examination                        16         40 
                                                          Total                                      100 
         
        6 - L i s t   o f   R e f e r e n c e s :  
        (a) Course Notes: 
           Notes will be distributed to the students throughout the semester 
        (b) Essential Books: 
           Keat, P., Young, P.K. and Erfle, S., Managerial Economics, 7th  Edition, Prentice 
           Hall, 2013.  
            
        (c) Recommended Books: 
           Salvatore, D., Managerial Economics: Principles and Worldwide Applications, 
            7th Edition, Oxford University Press, 2011. 
        (d) General References: 
           Emerald Database through iConnect.bau.edu.lb