BROCK UNIVERSITY

Economics 2P23 - Managerial Economics

Winter Term 2021

Instructor Professor J. Kushner

Office Plaza 425
E-Mail jkushner@brocku.ca
Office Hours Please feel free to email me at any time
Course web-site Isaak / Sakai (https:/lms.brocku.ca/)

Lectures : Section 02 TRF 1200-1300

Section 01 TRF 1300-1400
Please Note:
Prior to class, please mute your microphone and turn the camera off to avoid using a lot of RAM.
All your lectures are being recorded.

Tutorials: Tut 1, W 1700-1800, Tut 2, T 1700-1800, Tut 3, M 1000-1100

Tut 4, F 1400-1500, Tut
5, F 1500-1600 Tut 6, T 1100-1200

Textbook: Optional Baye, Michael R. and Jeffrey T. Prince, Eighth Edition, Managerial Economics
and Business Strategy, Customized version. The price of the version customized
for this course is a fraction of the price of the full version. Any prior edition will
do.
Referenced Material: Thompson, A. A. and J. P. Formby, Economics of the Firm: Theory and Practice,
Sixth Edition (on reserve)
Pindyck and Rubinfeld, Microeconomics (on reserve)
Hirshleifer, Price Theory and Application (on reserve)
Prerequisites: Econ 1P91 and one of Math 1P01, 1P05 or 1P97.
Please note you cannot receive credits for both ECON 2P21 and ECON 2P23.
Instructions:
1. There will be three lecture hours per week, plus a tutorial hour devoted for the most part to
applications of the theory. Tutorials will begin on Friday, January 15.
2. A twenty-minute test will be given every Friday online in class, tentatively beginning on Friday,
January 22. Tests will be returned in tutorials. The weekly test is on the material from the previous
test.
3. In addition to the questions, I ask in class, consider doing those on page 2.
Breakdown of marks:
Tests * 30%
Mid-term Exam**. March 6, 7-9 P.M. 30%
Final Examination***. Date to be announced 40%
*If you miss a weekly test and have a medical certificate or obtained prior permission prior to the test, your
other work will receive a higher weight.
** If you miss the mid-term, there is no make-up. If you have a medical certificate and/or obtained prior
permission, the final will be weighted at 70%.
*** If you miss the final and have a medical certificate, you must notify me before the exam. You will then
write the final in the following term when it is scheduled.

Course Outline and Required Readings

1. Review of Supply and Demand

Baye and Prince, Chapter 2, 3

Equilibrium of Supply and Demand
Applications - Effect of Per Unit Taxes on Consumers and Producers
- Effect of Ad Valorem Tax on Consumers and Producers
- Introduction of an Import Supply and Export Demand; Hirshleifer, Chapter 2,
pp. 34-41 (on reserve)

2. Demand: Indifference Curve Analysis and the Attribute Model

Baye and Prince, Chapter 4
Applications - Attribute Theory; Thompson, Chapter 4, pp. 88-94 (on reserve)
- Conditional versus Unconditional Grants; Pindyck and Rubinfeld, pp. 76-78 (on reserve)
- Marketing Strategies

3. Supply: Production, Costs

Baye and Prince, Chapter 5
Returns to Scale, Pecuniary Economies, and Economies of Scale

4. Markets and Firms: Prices and Quantities

a) Perfect Competition: Baye and Prince, Chapter 8
b) Monopoly: Baye and Prince, Chapter 8, Chapter 11, p. 404-17
c) Monopolistic Competition, Baye and Prince, Chapter 8
d) Oligopoly: Baye and Prince, Chapter 9
- Kinked Demand Curve
- Cartels
- Dominant Firm Price Leadership

5. Pricing Strategies for Firms

Baye and Prince, Chapter 11

6. Game Theory Applications (tentative)

Baye and Prince, Chapter 10

SUGGESTED QUESTIONS

Chapter Baye and Prince Questions Thomson questions

Ch.2 2, 4,6,8,11,12
Ch.3 2, 3, 4 5, 11, 12
Ch.4 3,10,15 Thompson, Ch.3:5,6; Ch.4:1,3,5,8,9,13
Ch.5 1, 13, 17 Thompson, Ch.6:2,3; Ch.7:2, 3, 4;
Ch.8:4, 6
Ch.8 2, 4,5,14
Ch.11, 4, 9,16
 Economics 2P23
“All you need to know about calculus”

Winter Term 2021

Rules of Differentiation

1. If y = xn dy/dx = nxn-1

2. If y = x dy/dx = 1x1-1 = 1xo = 1

3. If y = axn dy/dx = anxn-1

4. If y = a + bxn dy/dx = bnxn-1

5. If y = xn + xm dy/dx = nxn-1 + mxm-1

6. If y = (4x3 + 2x) x2 dy/dx = (4x3 + 2x) d(x2)/dx + x2 (d(4x3 + 2x)/dx) = (4x3 + 2x)2x2-1 + x2(12x2 +
2)
= = 8x 4 + 4x2 + 12x4 + 2x2 = 20x4 + 6x2

or multiply out and then differentiate

i.e. y = (4x3 + 2x) x2 = 4x5 + 2x3

dy/dx = 20x4 + 6x2

Partial Differentiation

When we have a function of more than one variable, for example TU = x2y + 2x 3 + 3y2 we might
want the derivative with respect to one variable only. For example, to obtain the partial derivative of TU
with respect to x, the rules are the same as above where all variables but one are constant. Examples:

1. TU = x2y

TU / x = y 2x2-1 = 2yx

TU / y = x2 1y1-1 = x2

2. TU = xy + x + y2

TU / x = y1x1-1 + 1x1-1 = y + 1

TU / y = x1y1-1 + 2y2-1 = x + 2y

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Academic Policies:

Respect Policy: Brock University is committed to building and maintaining a diverse and inclusive
community where our students, staff, faculty, course participants, volunteers and visitors can work and
learn in an environment that respects the dignity and worth of members of the Brock Community. Each
individual has the right to participate, learn and work in an environment that promotes equal opportunities
and prohibits all forms of harassment and discrimination. Each individual has the responsibility for their
own behaviour and actions and for recognizing and supporting the right of all individuals to dignity at
work and study and to maintain an environment in which this can flourish.

Academic Integrity: Academic misconduct is a serious offence. The principle of academic

integrity, particularly of doing one’s own work, documenting properly (including use of quotation marks,
appropriate paraphrasing and referencing/citation), collaborating appropriately, and avoiding
misrepresentation, is a core principle in university study. Students should consult Section VII,
“Academic Misconduct”, in the “Academic Regulations and University Policies” entry in
the Undergraduate Calendar, available at http://brocku.ca/webcal to view a fuller description of prohibited
actions, and the procedures and penalties. Information on what constitutes academic integrity is available
at https://brocku.ca/academic-integrity/

Tests and Examinations: If, for whatever reason, you cannot write a test or exam, you must notify
me prior to uploading of the file for your absence to be validated.

Intellectual Property Notice: All slides, presentations, handouts, tests, exams, and other course materials
created by the instructor in this course are the intellectual property of the instructor. A student who
publicly posts or sells an instructor’s work, without the instructor’s express consent, may be charged with
misconduct under Brock’s Academic Integrity Policy and/or Code of Conduct, and may also face adverse
legal consequences for infringement of intellectual property rights.

Special Accommodation: The University is committed to fostering an inclusive and supportive

environment for all students and will adhere to the Human Rights principles that ensure respect for dignity,
individualized accommodation, inclusion and full participation. The University provides a wide range of
resources to assist students, as follows: 

a) If you require academic accommodation because of a disability or an ongoing health or mental health
condition, please contact Student Accessibility Services at askSAS@brocku.ca or 905 688 5550 ext. 3240. 

b) If you require academic accommodation because of an incapacitating medical condition, you must, as
soon as practicable, inform your instructor(s) of your inability to complete your academic work. You must
also submit a Brock University Student Medical Certificate (found at
https://brocku.ca/registrar/toolkit/forms). The University may, at its discretion, request more detailed
documentation in certain cases. If you are unable to write a scheduled examination due to an incapacitating
medical condition, you must follow the process set out in the Faculty Handbook III:9.4.1. 

c) If you are experiencing mental health concerns, contact the Student Wellness and Accessibility Centre.
Good2Talk is a service specifically for post-secondary students, available 24/7, 365 days a year, and
provides anonymous assistance: http://www.good2talk.ca/ or call 1-866-925-5454. For information on
wellness, coping and resiliency, visit: https://brocku.ca/mental-health/

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d) If you require academic accommodation on religious grounds, you should make a formal, written
request to your instructor(s) for alternative dates and/or means of satisfying requirements. Such requests
should be made during the first two weeks of any given academic term, or as soon as possible after a need
for accommodation is known to exist. 

e) If you have been affected by sexual violence, the Human Rights & Equity Office offers support,
information, reasonable accommodations, and resources through the Sexual Violence Support & Education
Coordinator. For information on sexual violence, visit Brock's Sexual Assault and Harassment Policy or
contact the Sexual Violence Support & Response Coordinator at humanrights@brocku.ca or 905 688 5550
ext. 4387. 

f) If you feel you have experienced discrimination or harassment on any of the above grounds, including
racial, gender or other forms of discrimination, contact the Human Rights and Equity Office at
humanrights@brocku.ca. 

Important Dates
January 11,2021. First day of classes.
Feb.15-16, 2021, Holidays.
Feb.17-19,2021, Reading week (no classes),
Feb. 27, 2021, Midterm tentative
Last day to withdraw without penalty.
April 2,2021, Holiday.
April 9,2021. Last day of lectures,
April 12, 2021, Snow/Reading day.
April 13-23,2021, Examination period,
Final Exam, to be announced

ENJOY THE COURSE (As much as possible for an online course). And remember the course is easy,
easy to get a good mark but also easy to get a bad mark. It’s your decision!