COLLEGE OF ARTS AND SCIENCES

Department of Economics

COURSE OUTLINE IN AEC15

MANAGERIAL ECONOMICS
First Semester, AY 2018-2019

Credit Units: Three (3)

Pre-requisite: None.
Faculty: Jhon Louie B Sabal
Master of Arts, major in Economics (Ateneo de Manila University)
Email: jlsabal@xu.edu.ph
Consultation Hours: MTuThF: 1:00-4:00PM.

Course Description:
This course develops principles of microeconomics to enable managers to manage more
effectively in relation to customers, suppliers, competitors, and the regulatory environment.
The course introduces the basic microeconomic theories of marginal analysis and competitive
markets. It then develops principles of cost, strategic, and organizational analysis. Managerial
economics provides a set of fundamental building blocks for other disciplines, including
accounting, corporate finance, human resource management (incentives and organization),
marketing (brand extensions, promotion, and pricing), and general business strategy.

Course Learning Outcomes:

At the end of the semester, the students will be able to:
1. Trace the relationship of managerial economics to other fields of economics.
(Competence)
2. Demonstrate and develop managerial analysis using econometric modelling.
(Competence)
3. Examine the meaning and measurement of risk to managerial decision. (Competence
and Commitment)
4. Communicate the created estimation in appropriate forms and arena. (Competence and
Commitment)
5. Improve critical thinking skills including ability to identify, evaluate and engaged with
personal conviction. (Competence, Commitment and Conscience)
6. Propose managerial analysis based on sound economic principle, theories, methods and
optimization. (Competence, Commitment and Conscience)
7. Create sense of urgency and timelessness in accomplishing various tasks and
requirements. (Competence, Commitment and Conscience)

Official Textbook:
Samuelson, W. & Marks, S. (2012) Managerial Economics 7e. USA: Wiley and Sons. Inc.

Room 302, 3F, Social Sciences Building, Xavier University-Ateneo de Cagayan,

Corrales Avenue, Cagayan de Oro City, Philippines
Tel: 853-9800 local: 9353 or 9354
Email Address: economics@xu.edu.ph
Supplementary References:
1. Alhabeeb, M.J. & Moffitt, L. Joe (2013) Managerial Economics: A Mathematical
Approach. USA: John Wiley & Sons, Inc.
2. Baye, Michael R. Managerial Economics and Business Strategy. McGraw-Hill. 7th ed.
3. Besanko, David (2006). Microeconomics 2e. India: John Wiley & Sons (Asia).
4. Graham, Robert (2013). Managerial Economics. USA: John Wiley & Sons.
5. Png, Ivan (2012). Managerial Economics 4e. London: Routledge.
6. Varian, Hal (2010). Intermediate Microeconomics: A Modern Approach 8e. USA:
W.W. Norton and Company.
7. Wooldridge, Jeffrey M. (2009). Introductory Econometrics 4e. Asia: Cengage
Learning.

Course Requirements/ Summary of Assessment Tasks:

1. Prelim Exam
2. Midterm Exam
3. Semi-final Exam
4. Final Exam

Grading System:
AFTER MIDTERM
MIDTERM GRADE FINAL GRADE
GRADE
Semi-Final
Prelim Exam 20% 20% Final Exam 30%
Exam
Midterm Exam 30% Midterm Grade 35%
Class Standing 80% After Midterm
Class Standing 50% 35%
Grade
TOTAL 100% TOTAL 100% TOTAL 100%

Marking System:
Grade Percentage Indication
A 92-100 Excellent
A- 84-91.99 Very Good
B 76-93.99 Good
B- 68-75.99 Fair
C 60-67.99 Satisfactory
D 50-59.99 Passed
F below 50 Failed
Source: Student Handbook 2015

Content Outline:

Prelim
Chapter 1: Introduction to Economic Decision Making (Six Steps to Decision Making).
Chapter 2: Optimal Decisions Using Marginal Analysis.
Chapter 3: Demand Analysis and Optimal Pricing.

Midterm
Chapter 4: Estimating and Forecasting Demand.
 Chapter 5: Basic Production Concepts.

Semi-Final
Chapter 6: Cost Analysis.
Chapter 7: Perfect Competition.
Chapter 8: Monopoly.

Final
Chapter 9: Oligopoly.
Chapter 10: Game Theory and Competitive Strategy.
Chapter 11: Benefit Cost Analysis.
Chapter 12: Decision Making under Uncertainty.

Course Policies:
1. Students are expected to take full responsibility for his/her academic work and academic
progress especially in tracking their class standing using their SLMIS account.
2. Students are expected to attend class regularly; there are only seven (7) allowable absences.
Beyond the allowable absences, the student will be marked AF (Failure due to excess
absences). There are no excused absences.
3. INC mark is only given to students who failed to take the Final Requirement. If any other
major exams and projects were not submitted, the student is given a corresponding grade
accordingly.
4. Class participation is highly encouraged. Students are expected to contribute significantly
to discussions voluntarily or when called upon.
5. Feel free to come to the teacher to ask questions, discuss difficult material, or consult
problems related to the course. If the office hours are not convenient, you may set up an
appointment for an alternative time.
6. Students are highly encouraged to speak in English all the time. Code switching is
discouraged.

Classroom Courtesy:
The best kind of classroom environment is one in which each person believes that they are
being treated with respect for contributions to the class. To that end, the following must be
observed:
1. Class Preparation: You must read assignments before class sessions. Papers must be
handed on time. All projects must be submitted in order to earn a final grade.
2. Coming and Going: It’s courteous to be on time and not to leave the class early.
Students who arrive late may miss important announcements or disrupt class
unnecessarily. Students who walk out of class early risk giving an unintentionally
negative impression by exciting unexpectedly. If circumstances require you to be late
for class, or require you to leave early, please alert the instructor either before or after
 class. Punctuality is highly appreciated; habitual lateness is likely to have a negative
impact on one’s grade.
3. Respect for others: Having our opinions and ideas treated with respect is a basic
courtesy that we all appreciate. Respectful behaviors include listening carefully and
attentively to what others have to say, offering comments and challenges to ideas in
ways that address issues rather than personalities, coming to class on time, being
prepared for the day’s readings and activities, and refraining from talking reading while
others are speaking.
4. Use of cellphones, and other electronic devices: In today’s world, these devices are
part of the everyday gear that we carry yet we know also that the sounds they make can
be terribly disruptive, especially within the generally quiet ambience of the typical
classroom. Please make certain that all electronic devices cannot disrupt others or the
class in general. However, the use of it is not discouraged as long as it supplements the
classroom discussion.
5. Honesty: Cheating is a crime, if the student does not know the answer; the item must
be left blank. Glimpsing on the answers of your classmate or talking with your seatmate
during examinations is considered cheating.

I have read and clearly understood the demands and specified requirements with deadlines of the
course, AEC15: Managerial Economics.

I am fully aware that compliance and non-compliance of the same is detrimental to my grades as
representative of my academic performance.

___________________________ ___________________________
SIGNATURE OVER PRINTED NAME DATE SIGNED