BAM 040: Managerial Economics

Student Activity Sheets Module #1

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

Lesson title: Orientation and Introduction to Managerial Materials:

Economics Student Activity Sheets
Lesson Objectives: References:
1. I am well knowledgeable about flexible learning setup. Managerial Economics by Viloria,
2. I can explain the basic concepts of managerial economics. Halcon, Avila-Bato & Viray
Managerial Economics Business
Strategy

Productivity Tip:

“Set your goals and find ways to achieve them.”

YOU CAN DO IT!

A. LESSON PREVIEW/REVIEW
1) Introduction (10 min)
Congratulations buddy! You are now officially enrolled in BAM 040 Managerial Economics subject. Let’s
make this semester exciting and challenging for you yet a fruitful one through acquiring knowledge and
ideas about the subject. But before that, I will set our house rules to guide you in and out of our class.

HOUSE RULES

1. Use your “real” name in your Facebook account. This will help your class advisers
and subject teachers in adding you to your group chats.

2. Read the course outline for this subject.

3. Ensure that you list your name on the seat plan form. This will be used for easy
contact tracing.

4. Attend our class regularly. Be punctual.

3. Remove distractions while we are having our class discussions. Be focus!

5. Organize your portfolio properly.

6. Inform your subject teacher/s whenever you need to be absent in the class unless
there is an emergency.

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 BAM 040: Managerial Economics
Student Activity Sheets Module #1

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

2) Activity 1: What I Know Chart (3 min)

Direction: For this activity, you need to write your answers on the column “What I Know” based on the
questions on the second column. Do not write anything on the third column until you are told to do so.

What I Know Questions: What I Learned (Activity 4)

1. What is Managerial
Economics?

2. How does it relate to

microeconomics?

B.MAIN LESSON
1) Activity 2: Content Notes (10 min)
You can highlight important words or phrases related to the topic.

What is Managerial Economics?

1. Managerial economics is a stream of management studies which emphasises
solving business problems and decision-making by applying the theories and principles of
microeconomics and macroeconomics. It is a specialised stream dealing with the organisation’s internal
issues by using various economic theories.

2. According to Baye, managerial economics is the study of how to direct scarce resources in the way
that most efficiently achieves a managerial goal. In line with this, a manager is seen as a person who
directs resources to achieve a stated goal.

3. According to Salvatore(2004), managerial economics is described as the application of economic

theory and the tools of analysis of decision science to examine how an organization can achieve its
aims or objectives most efficiently.

4. Managerial economics is defined as the utilization of managerial skills in the business by applying
economic theories and concepts to maintain efficiency in costing and production and its effectiveness
on every decision making by the firms to fully maximize their profits.

Relationship of Mathematical Economics and Econometrics to Managerial Economics

The utilization of mathematical economics to managerial economics is essential as it is used to

formalize (express in equation form) the economic models postulated by economic theory to firmly
identify the proper solution to a managerial problem. In relation to this, econometrics is also used in
managerial economics as a statistical tool (particularly regression analysis) to estimate real-world data
and analyse the models postulated by economic theory; which is also used in forecasting.

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 BAM 040: Managerial Economics
Student Activity Sheets Module #1

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

The Nature of Managerial Economics

Problems for Managerial Decision-Making

Economic Theory Decision Sciences

Microeconomics Mathematical Economics

Managerial Economics

Application of Economic Theory

Optimal Solution

Managerial Decision Making

Basic Principles of Effective Management

1. Identify goals and constraints.

2. Recognize the nature and importance of profits.
3. Understand incentives.
4. Understand markets
5. Recognize the time value of money.

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 BAM 040: Managerial Economics
Student Activity Sheets Module #1

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

1. Identify Goals and Constraints

The first step in making sound decisions is to have well-defined goals because achieving different
goals entails making different decisions. If your goal is to maximize your grade in this subject rather
than maximize your overall grade point average, your study habits will differ accordingly.
In every decision, the decision maker faces constraints that affect the ability to achieve a goal.

Constraints are an artifact of scarcity. Constraints make it difficult for managers to achieve goals such
as maximizing profits or increasing market share. These constraints include such things as the
available of technology and the prices of inputs used in production. The goal of maximizing profits
requires the manager to decide the optimal price to charge for a product, how much to produce, which
technology to use, how much of each input to use, how to react to decisions made by competitors and
so on.

2) Activity 3: Skill-Building Activities

Before the start of our official discussion about the topic, let’s have some reflections in order to assess
and give you directions towards your journey in achieving your dreams.

What is your DEEPEST “WHY” in pursuing this course?

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

What are your goals in life? What are the constraints in What are your strategies
achieving your goals? in order to overcome
those constraints?

1. 1. 1.

2. 2. 2.

3. 3. 3.

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 BAM 040: Managerial Economics
Student Activity Sheets Module #1

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

3) Activity 4: What I Know Chart (2min)

For this part, you need to revisit the Activity 1. I want you to write all the things you’ve learned on the
third column “What I Learned”. Take time to compare your initial and final understanding after studying
this topic. I hope you gain additional knowledge.

4) Activity 5: Check for Understanding (5min)

Direction: Based on the definition of managerial economics on the concept notes, I want you to choose
five words or phrases that you think are closely related to the subject matter and explain why you
choose them. Don’t worry because there is no right or wrong answers here.

Words/Phrases you Choose Explanation

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

C. LESSON WRAP-UP
1) Activity 6: Thinking about Learning (5 mins)
A. Work Tracker
Congratulations! You are done with our first session! Let’s track your progress. Shade the session
number you just completed.

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 BAM 040: Managerial Economics
Student Activity Sheets Module #1

Name: Class number: _______

_________________________________________________________________ Date:_______________
Section: ____________ Schedule:_____________________________________

B. Think about your Learning

1. What is the most important lesson you gained on this session?

__________________________________________________________________________________
__________________________________________________________________________________
_________________________________________________________________________________

2. What will you do next session to maintain or improve your performance?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

FAQ
1. Who was the father of Economics?
Adam Smith was an 18th-century Scottish economist, philosopher, and author who is considered the
father of modern economics. His most notable contribution to the field of economics was his 1776 book,
“An Inquiry into the Nature and Causes of the Wealth of the Nations.”

Key to Corrections

Skill-Building Activities

1. Answers may vary.

Check for Understanding

1. Answers may vary.

Submit your activity sheets before the end of the session!