AC-4102 Managerial Economics Syllabus
AC-4102 Managerial Economics Syllabus
SYLLABUS
COURSE DETAILS
Course No. : AC 4102 Professor: Rey D. Amaya CPA, MAIA
Course Title : The Managerial Economics Office: Department of Accountancy
Credit Units : 3
Pre-requisites : Contact No: 253-1000 loc. 208
th
Term : 4 year 1st semester Email Add: [email protected]
Schedule :
Course Description
The course presents concepts and principles from the perspective of managerial economics. It is primarily designed on the application of economic principles and
methodologies to key management decisions within organizations to maximize wealth as well as the strategic decisions designed to create and protect wealth in the long run.
Learners are expected to grasp the underlying concepts and relationships of supply and demand, production analysis and its associated cost, market equilibrium, market
structure and market regulations. Ultimately, learners will be able to isolate the economic principles mentioned above to understand business and solve managerial problems
especially on the products to produce, costs to consider and prices to charge. As managerial economics an integrative course and managerial decisions are interdisciplinary, it
is expected that various learning’s from previously taken course from Finance, Cost and Management courses will be used in solving case based exercises.
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PEO#1 An accounting professional who can build a career at national and international levels.
An accounting professional who is competent and capable in creating, managing, and distributing wealth whether in manufacturing, merchandising, and service
PEO#2
related enterprise.
PEO#3 An accounting professional who contributes his/her expertise to the industry, professional body, and society.
Upon completing the BS Accountancy program, graduates will demonstrate the following:
PEOs
Domain Domain Definition Skills
PEO#1 PEO#2 PEO#3
The ability to acquire and apply knowledge of science, mathematics, business and
PO#1: Business Knowledge economics and to understand key terms, facts and processes related to Finance and Cognitive
Accounting.
The ability to verbalize and articulate business information to be used by financial
PO#2: Communication/Reporting
information users in making economic decisions.
Psychomotor
The ability to direct and influence others towards a common goal and to recognize Affective/
PO#3: Leadership/Teamwork
individual performance and work with others towards achieving a common goal. Psychomotor
PO#4: Multi-disciplinary Teams The ability to function in collaboration with other disciplines. Psychomotor
The ability to be professionally competent, noble in character, sensitive to the
PO#5: Witness to the Word Gospel's mission and adhere to the Code of Professional Ethics for the accounting Affective
profession.
The ability to demonstrate personal and intellectual autonomy and information
PO#6: Life-long Learning
literacy.
Affective
The ability to embrace the diversities and complexities of the world across Cognitive/
PO#7: Global Citizenship disciplines and perspectives, at the same time preserve and promote “Filipino Affective/
historical and cultural heritage”; to demonstrate corporate citizenship, social Psychomotor
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Course Structure
Demand Analysis (4 hours) CO1; CO3 1. Short quiz 1. Assign an advanced reading
1. Use various elasticities of demand as quantitative 2. Seatwork 2. Lecture
A. Measuring Market Demand tool to forecast changes in revenues, price and/or 3. Oral exam discussion/powerpoint
units sold. 4. Course presentation
B. Demand Sensitivity Analysis:
2. Illustrate the relationship between the elasticity of preparation 3. Discussion of illustrative
Elasticity
demand and total revenues, and discuss three assignment examples
C. Price elasticity of demand factors that influence whether the demand for a 5. Group 4. Guided practice exercises
given product is relatively elastic or inelastic activity 5. Seatwork – problem based
D. Price elasticity and Marginal 3. Explain the relationship between marginal learning
Revenue revenue and the own price elasticity of demand 6. Team-based exercises
7. Group game – quizbowl
E. Price elasticity and Optimal Pricing
Policy
F. Cross Price elasticity of demand
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Forecasting (4 hours) CO1;CO2;C 1. Explain the application of forecasting both in 1. Short quiz 1. Assign an advanced reading
O3 micro and macro level 2. Seatwork 2. Lecture
A. Applications of Forecasting 2. Explain and apply the basic theory behind 3. Oral exam discussion/powerpoint
the several techniques for economic 4. Course presentation
B. Forecasting Techniqes (Qualitative
forecasting. preparation 3. Discussion of illustrative
Analysis, Trend Analysis,
3. Explain and differentiate the rhythmic assignment examples
Exponential Smoothing and
pattern of contraction and expansion in the 5. Group 4. Guided practice exercises
Econometric methods)
overall economy. activity 5. Seatwork – problem based
C. Business Cycle 4. Evaluate and apply appropriately forecasting learning
technique in a given scenario 6. Team-based exercises
D. Judging Forecast Reliability
E. Choosing the Best Forecast technique
IV. Production and Cost Analysis CO1;CO2;C 1. Explain alternative ways of measuring the 1. Short quiz 1. Assign an advanced reading
The Production Function (6 hrs) O3 productivity of inputs and the role o the manager 2. Seatwork 2. Lecture
in the production process. 3. Oral exam discussion/powerpoint
A. Properties of Production function 2. Determine input demand and cost minimizing 4. Course presentation
combination of inputs for given production preparation 3. Discussion of illustrative
B. Measures of Productivity ( Total
functions, and use isoquant/isocost analysis to assignment examples
Product, Average Product and
illustrate optimal input substitution. 5. Group 4. Guided practice exercises
Marginal Product)
3. Derive cost function from a production function activity 5. Seatwork – problem based
C. The Role of the Manager in the and explain how economic costs differ from learning
Production Process accounting costs. 6. Team-based exercises
7. Group game – quizbowl
D. Algebraic Measures of Productivity
E. Law of Diminishing Returns to a
Factor
F. Input Combination Choice
(Production Isoquants, Input Factor
substitution, marginal rate of
technical substitution, rational limit
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of input substituon).
G. Marginal Revenue Product and
Optimal Employment
H. Optimal Combination and Levels of
Multiple Inputs
I. Returns to Scale
MIDTERM EXAMINATION
Cost Analysis and Estimation (6 hours) CO1;CO2;C 1. Explain the difference between the economic 1. Short quiz 1. Assign an advanced reading
O3 relevance of fixed costs, sunk costs, variable 2. Seatwork 2. Lecture
A. Link between Accounting and costs and marginal costs 3. Oral exam discussion/powerpoint
Economic Valuations 2 Calculate average and marginal costs from 4. Course presentation
algebraic or tabular cost data and illustrate the preparation 3. Discussion of illustrative
B. Opportunity Costs, Incremental cost,
relationship between average and marginal assignment examples
sunk cost and other costs in Decision
costs. 5. Group 4. Guided practice exercises
Analysis
4. Distinguish between short run and long run activity 5. Seatwork – problem based
C. Short Run and Long Run Costs production decisions and illustrate their impact 6. Summative learning
on costs and economies of scale long exam 6. Team-based exercises
D. Short Run and Long Run Curves 5. Determine whether a multiple output production 7. Group game – quizbowl
process exhibits economies of scope or cost
E. Minimum Efficient Scale complementaries and explain their significance
F. Firm and Plant Size for managerial decision.
G. Learning Curves
H. Economies of Scope
V. Markets CO3 1. Describe the competitive environment in the 1. Short quiz 1. Assign an advanced reading
market for any goods or service. 2. Seatwork 2. Lecture discussion/powerpoint
The Nature of Industry (6 hours) 2. Discussed and differentiate the real or perceived 3. Oral exam presentation
A. Competitive Markets differences in the quality of goods and services 4. Course 3. Discussion of illustrative
(Characteristics, Factors that Shape offered to consumers. preparation examples
the Competitive Environment; 3. Discuss what is perfect competition. assignment 4. Guided practice exercises
Marginal Cost and Firm Supply, 4. Compute and apply concepts on normal profit, 5. Group 5. Seatwork – problem based
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Competitive Market Supply Curve, marginal analysis both on short run and long run activity learning
Competitive Market Equilibrium) firm supply. 6. Team-based exercises
B. Performance and Strategy in 7. Group game – quizbowl
Competitive Market
Imperfect Competition (6 hours) CO3 1. Determine whether an industry is best described 1. Short quiz 1. Assign an advanced reading
as perfectly competitive, a monopoly, 2. Seatwork 2. Lecture discussion/powerpoint
A. Monopoly and Monopsony monopolistically competitive or an oligopoly. 3. Oral exam presentation
2. Recognize sources of power and strategies from 4. Course 3. Discussion of illustrative
B. Monopolistic Competition and
different kinds of firms. preparation examples
Oligopoly
3. Explain and illustrate the effect of previously assignment 4. Guided practice exercises
C. Game Theory and Competitive learned economic principles in an imperfect 5. Group 5. Seatwork – problem based
Strategy competition. activity learning
6. Team-based exercises
7. Group game – quizbowl
VI – Pricing Practices (6 hours) CO2;CO3 1. Implement pricing strategies that permit firms to 1. Short quiz 1. Assign an advanced reading
extract additional surplus from consumers 2. Seatwork 2. Lecture
A. Pricing Rules of Thumb 2. Implement pricing strategies that enhance profits 3. Oral exam discussion/powerpoint
for special cost and demand structure. 4. Course presentation
B. Markup Pricing and Profit
preparation 3. Discussion of illustrative
Maximization
assignment examples
C. Price Discrimination 5. Group 4. Guided practice exercises
activity 5. Seatwork – problem based
D. Multiple Product Pricing learning
6. Team-based exercises
E. Joint Products 7. Group game – quizbowl
F. Transfer Pricing
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Educational Resources
A. Book
Hirschey, M. (2006), Fundamentals of Managerial Economics (8th edition). Ohio, USA: Thomson South-Western
References
Hirschey, M. (2006), Fundamentals of Managerial Economics (8th edition). Ohio, USA: Thomson South-Western
Thomas,C.R. & Maurice S.C(2011), Managerial Economics: Foundations of Business Analysis and Strategy (10th edition).USA: McGraw-Hill
Baye, M.R. (2009), Managerial Economics and Business Strategy (6th edition) Mc-Graw Hill
Course Requirements
As a students in this course, you must comply with the following requirements:
1. Attendance and Class Participation
You are expected to attend all classes. Attendance in the lectures is very important because the lectures present new information and provide background for the
assignments. You are responsible for all of the material presented in lectures.
The USC Student Manual (2006 Edition) specifies that “a student who incurs absences of more than 20% of the prescribed number of class hours or laboratory periods
during the term should be given NC or 5.0.” A 3-unit course has 48 class hours. Students with three absences are required to get a readmission permit from the college
dean.
Class participation is evidenced by individual or group outputs from in-class exercises. These outputs shall be collected at the end of a class meeting. In-class exercises
could include Short quizzes, seatworks, and group discussions.
2. Out-of-Class Learning Tasks and Assignments
To ensure learning engagement and constant timely practice, you are required to do out-of-class tasks in the form of small projects and recommended problems relevant to
a particular unit. To this end, you are required to have a notebook intended only for exercises. From time to time, your exercise notebooks will be checked in order to
assess the timeliness of your learning efforts.
3. Tests and Examinations
A minimum of four (4) exams are given during the semester and are scheduled following the schedules set by the university. The midterm exam and the final exam are
three-hour examinations and require students to present valid examination permits for participation in the examination.
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4. Portfolio/Term Report
A portfolio of documents will be submitted at the end of the term. It will contain the introduction, problems, alternative course of actions, corresponding descriptions,
analyses, and conclusion and recommendations thereof.
Grading System
This course will follow the standard grading system of the University as follows:
Assessment Tasks Weight (%) Assessment Reference
Class participation 15 Rubric No. 1
Pre-midterm summative exams and midterm exam 25 Multiple choice, open ended questions
Pre-final summative exams and final exam 25 Multiple choice, open ended questions
Team-based activities presentation 15 Rubric No. 3, Rubric No. 4
Team-based activities portfolio submission 10 Rubric No. 3
Peer assessment 10 Rubric No. 2
Total 100
GPA Scoring
For purposes of transmutation, the standard equivalents will be used as follows:
Score Range 100-95 94-93 92-91 90-89 88-87 86-85 84-83 82-81 80-79 78-77 76-75
Grade Equivalent 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0
Score Range 74-73 72-71 70-69 68-67 66-65 64-62 61-59 58-56 55-53 52-50 49 below
Grade Equivalent 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 3.0 5.0
Note:
1. Students who obtain grades below 3.0 is equivalent to a failing grade of 5.0.
2. BSA students must maintain a 2.0 GPA in each core and professional course.
3. BSMA, BSAIS, and BSIA students must maintain a 2.5 GPA in each core and professional course.
4. Students who have not complied with their final requirements for the subject will be given an INC grade.
5. Students with an INC grade are given at most one year to comply with the necessary requirements to be given a final grade. Students whose grades are not changed
within one year will automatically receive a final grade of No Credit (NC).
6. Students can only have a maximum of nine (9) units of INC grades at one time. Students who violate this rule will not be allowed to enroll in further subjects until
they comply with the requirements and have their INC grades changed.
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Classroom Management
1. Attendance is a MUST. Students may incur only ten (10) absences for MWF schedules or seven (7) absences for TTH schedules. Otherwise, they will automatically
be dropped from class and receive a grade of either NC (No Credit) or a failing grade of 5.0, whichever is applicable.
2. Students who incur three (3) absences will be asked by the instructor to see the Department Chair to secure permission to be re-admitted to class. A re-admission slip
should be properly accomplished for this.
3. Tardiness is discouraged. It is a source of irritation and class disruption when students arrive late. Students who arrive 15 minutes after the start of class are
considered tardy. Please note that three (3) tardiness is equivalent to one (1) absence.
4. A permanent seat plan will be made at the start of the semester. Students are advised to keep to their assigned seating arrangement; otherwise, they will be marked
absent for that day.
5. Classes should always start and end with a short prayer. The instructor can opt to lead the prayer or assign students to do this alternately.
6. Students should assist in maintaining the orderliness and cleanliness of the classrooms. Graffiti writing is strictly prohibited. Any student found violating this rule
will be punished with the appropriate sanction. Before leaving the classroom, the instructor with the help of the students, should ensure that no litter/garbage is left
behind and that chairs are in their proper order. Should the class be the last schedule for the day, the instructor should arrange that the lights and air conditioning units
are switched off.
7. Going out of the classroom at any time is strictly discouraged. Students should make it a habit to go to the restroom during their vacant period or before the start of
their classes. If they must visit the restroom, permission should be sought from the instructor.
8. Use of mobile phones inside the classroom is strictly prohibited. They should be switched off or placed in silent mode before entering classes. The instructor has the
right to confiscate mobile phones that ring and/or are used during class hours. The confiscated unit can only be claimed from the Dean’s Office at the end of the
semester.
9. The teacher reserves the right to ask the student to leave the room if his behavior is disruptive in class.
10. It is the responsibility of the students to properly schedule their classes so that meals and snacks will be taken at the proper time.
11. Students are encouraged to see the instructor during consultation hours for any concerns, questions and assistance with regards to the course.
Comments are uninformative, Comments sometimes Comments mostly insightful Comments always insightful and
lacking in appropriate constructive, with occasional and constructive; mostly uses constructive; uses appropriate
terminology. Heavy reliance signs of insight. Student does appropriate terminology. terminology. Comments
2. Quality of
on opinion and personal taste. not use appropriate Occasionally comments are too balanced between general 2
comments
terminology; comments not general or not relevant to the impressions, opinions and
always relevant to the discussion. specific, thoughtful criticisms or
discussion. contributions.
Does not listen speak or does Student is often inattentive and Student is mostly attentive Student listens attentively when
not pay attention while other needs reminder of focus of when other present ideas, other present materials,
speak; detracts from class. Occasionally makes materials, as indicated by perspective, as indicated by
discussion; sleeps, etc. disruptive comments while comments that reflect and comments that build on others'
3. Listening skills others are speaking. build on others' remarks. remarks, i.e. student hears what 2
Occasionally needs say and contributes to the
encouragement or reminder dialogue.
from T.A. of focus of
comment.
RUBRIC SCORE {[(4+2+2)/3] + 1} x 20 *3 refers to the # of criteria, 1 and 20 are constants 73.3333
PERCENTAGE SCORE Computed as Rubric Score divided by 100 *100 is a constant 73.3333%
TRANSMUTATION EQUIVALENT Computed as Percentage Score multiplied by -4 plus 5 *-4 and 5 are constants 2.1
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Completes all assigned tasks by Completes all assigned tasks by Completes all assigned tasks by Completes all assigned tasks by
2. Individual deadline. deadline; work accomplished deadline; work accomplished is deadline; work accomplished is
contributions advances the project. thorough, comprehensive, and thorough, comprehensive, and
advances the project. advances the project. Proactively 4
outside of helps other team members complete
team meetings their assigned tasks to a similar level
of excellence.
Supports a constructive team climate Supports a constructive team climate Supports a constructive team climate Supports a constructive team climate
by doing any one of the following: by doing any two of the following: by doing any three of the following: by doing all of the following:
Treats team members respectfully Treats team members respectfully Treats team members respectfully Treats team members respectfully
by being polite and constructive by being polite and constructive by being polite and constructive in by being polite and constructive
in communication. in communication. communication. in communication.
Uses positive vocal or written Uses positive vocal or written Uses positive vocal or written Uses positive vocal or written
3. Fosters tone, facial expressions, and/or tone, facial expressions, and/or tone, facial expressions, and/or tone, facial expressions, and/or
constructive body language to convey a body language to convey a body language to convey a body language to convey a
positive attitude about the team positive attitude about the team positive attitude about the team positive attitude about the team 1
team climate and its work. and its work. and its work. and its work.
Motivates teammates by Motivates teammates by Motivates teammates by Motivates teammates by
expressing confidence about the expressing confidence about the expressing confidence about the expressing confidence about the
importance of the task and the importance of the task and the importance of the task and the importance of the task and the
team’s ability to accomplish it. team’s ability to accomplish it. team’s ability to accomplish it. team’s ability to accomplish it.
Provides assistance and/or Provides assistance and/or Provides assistance and/or Provides assistance and/or
encouragement to team members. encouragement to team members. encouragement to team members. encouragement to team members.
RUBRIC SCORE {[(2+4+1)/3] + 1} x 20 *3 refers to the # of criteria, 1 and 20 are constants 66.6667
PERCENTAGE SCORE Computed as Rubric Score divided by 100 *100 is a constant 66.6667%
TRANSMUTATION EQUIVALENT Computed as Percentage Score multiplied by -4 plus 5 *-4 and 5 are constants 2.3
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2. Developing a Plan to Student does not develop a Student develops a marginal Student develops an adequate Student develops a clear and
Solve the Problem coherent plan to solve the plan, and does not follow it to plan and follows it to concise plan to solve the
problem. conclusion. conclusion. problem, with alternative 3
strategies, and follows the plan to
conclusion.
3. Collecting and Student collects no viable Student collects inadequate Student collects adequate Student collects information from
Analyzing information. Incorrect information to perform information and performs multiple sources and analyzes the
Information/application analysis based on partial meaningful analyses. basic analyses. information in-depth. Excellent 3
of analytical techniques understanding of the application of the appropriate
problem. techniques
4. Interpreting Findings Student does not interpret the Student provides an Student provides an adequate Student provides a logical
and Solving the findings/reach a conclusion. inadequate interpretation of interpretation of the findings interpretation of the findings and
Problem, Incorrect recommendation. the findings and does not and solves the problem, but clearly solves the problem,
Recommendations No managerial insights. derive a logical solution to the fails to provide alternatives. offering alternative solutions. 2
&Managerial insights problem. Reasonable Reasonable recommendation, With solid recommendation and
recommendation, but does not but weak managerial insights. managerial insights.
offer a managerial insights.