Rezafa

ECON510 Sections 01 (UT 18:30-19:45)

MBA Syllabus: Managerial Economics
Department of Finance & Economics
College of Industrial Management

Year 2014-2015 (141)

Assistant Professor: Dr Reza F. Aghdam
Office: Room 215, Building 24; Phone: 03 860 7525; Email: rezafa@kfupm.edu.sa
Course Description:
This course basically is about the application of economics in various economic problems that
managers often face in real world business. In this respect, the course presents how principles of
economics (predominantly microeconomics) can be used for achieving sound managerial
decisions that would lead to efficient allocation of resources, mainly through implementing
appropriate corporate planning strategies and effective tactics.

Course Objectives:
Upon competition of this course, students should be able to understand and analyze basics of:
demand function, applying some empirical estimation techniques and making sound
demand-side forecasting;
production, cost and supply functions;
output and pricing decisions;
efficiency and productivity (and techniques for measuring them);
business condition and environment (e.g., trends, cycles and seasonal effects);
markets of factors of productions (e.g., labor, capital, and natural resources); and
competitors behaviors under various market structures.

Textbook:
James McGuigan, Charles Moyer and Fredrick Harris (2011) Economics for Managmers 12
th

(International) edition, South-Western Cengage Learning, 2011.

COELLI, PRASADA RAO, and BATTESE, (2005) An introduction to efficiency and productivity
analysis, 2
nd
edition, Boston, Springer ( This will be provided to Students. A limited chapters will
be covered as a part of the course)

Further Readings:
Thais Ten Raa (2013) Microeconomics: Equilibrium & Efficiency Palgrave macmillan

Evaluation Arrangement:
Major1 (Week 6) Tuesday 28 Oct 2014 (Class @ 18:30) 30%
Five Chapters (1-5)
Major2 (Week 11) Tuesday 25 Nov 2014 (Class @ 18:30) 30%
Five Chapters (7-9 mixing with Chapter 3 and 5 of Coelli et al 2005)
Final Exam Tuesday 30 Dec 2014 (TBA; 19:00) 25%
Four Chapters (11-14)
Term Project & Presentation 10%
Other Assignments (including in-class tests) 5%

Total 100%
Rezafa

Exams will be a mix of both multiple choice and essay questions. Term paper topic must be approved
by the instructor by week 6. Term paper is a major project, and it is expected that students will
spend quality time to write the paper. Paper presentation is required. A term paper submitted
without presentation will receive a zero grade. Final version of the paper must be submitted in
Turnitin website for plagiarism check. Topics must relate to the subject matter of this class. Class
participation is highly encouraged. An MBA class should be full of live real life discussions.
Weekly Chapter Topic Outline:
Week 1 Chapter 1 Introduction
Week 2 Chapter 2 Fundamental Economic Concepts
Week 3 Chapter 3 Demand Analysis
In-Class Test: Chapters 1-3; Sunday 21 Sep 2014 (Class @ 18:30)
Week 4 Chapter 4 Estimating Demand
Week 5 Chapter 5 Demand-side forecasting
Week 6 1
st
Major Exam Tuesday 28 Oct 2014 (Class @ 18:30)
Approval of Term Papers
Week 7 Chapter 7 Production Economics
Week 8 Chapter 8 Cost Analysis
Week 9 Benchmarking; Input-Output Model & measuring efficiency and productivity
Week 10 Benchmarking; Input-Output Model & measuring efficiency and productivity
Week 11 2
nd
Major Exam Tuesday 25 Nov 2014 (Class @ 18:30)
Discussing Term Papers
Week 12 Chapter 10 Price, Output and Strategy: Pure and Monopolistic Competition
Week 13 Chapter 11 Price and Output: Monopoly and Dominant Firm
Week 14 Chapter12 Oligapoly
Week 15 Chapter 13 Best-Practice Tactics: Game Theory
Presentations of Term Papers
Final Exam Tuesday 30 Dec 2014 (TBA; 19:00)

Electronic Resources:
Weekly modules are available in my Blackboard (BB)


Consultation Hours:
Class Time: UT 18:30 19:45
Office Hours: UT 19:4521:00
Other Times: by appointment via email (USE THE BB INTERNAL MAIL).


Important Note: The first three weeks will be instructed by Dr Tayseer Al-Khunaizi. A test on
these materials will be conducted by Dr Al-Khunaizi as well on 21 September 2014 before Eid
Holiday.