THE UNIVERSITY of MICHIGAN - DEARBORN

College of Business
BE 530 ECONOMIC ANALYSIS: FIRM & CONSUMER
CRN 18322 - SECTION 002
Online
FALL, 2014
Instructor:
Office:
e-mail:
Phone:
Office Hours:

Mercedes Miranda, Ph.D.

102B FCS
mmirand@umich.edu
(313) 583-6486
Fax: (313) 271-9837
Tuesdays 4:00 PM 5:30 PM, and by appointment

COURSE DESCRIPTION
(Prerequisites: Graduate standing and mathematics admission prerequisite)
This is a microeconomics course designed for graduate students. Microeconomics is
the branch of economics that deals with the behavior of individual economic units.
These units include consumers, workers, investors, business firms, or any entity that
plays a role in the functioning of our economy. This course focuses on business
applications of microeconomic theory. For example, the course will study market
demand and supply; firms' cost functions; profit maximization; monopolies;
monopolistic competition and oligopolies.
COURSE LEVEL LEARNING OBJECTIVES
By the end of this course, the student should comprehend microeconomic concepts and
their relationship to the business environment. The student should be able to use
techniques developed in class to analyze diverse market situations.
PROGRAM LEVEL LEARNING OBJECTIVES
Detailed information about the learning objectives for the MBA program may be
found on the COB website at http://cob.umd.umich.edu/mba-goals-and-objectives/
BE 530 contributes extensively to goal 1, Understanding of Core Business Disciplines,
under the category of Business Economics analysis.
BE 530 contributes substantially to objective 1, which involves demonstrating
knowledge of disciplinary concepts, terminology, models, and perspectives. This
will be addressed through the weekly classroom discussions, as well as through two
exams, and final examinations.
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BE 530 contributes extensively to objective 2, which involves identifying business

problems and apply appropriate solutions (problem-finding/problem-solving). This
will be addressed through the weekly classroom discussions, and examinations.
BE 530 contributes significantly to objective 3, which involves knowledge across
disciplinary areas (integrative thinking). This will be addressed through the study of
a major industry.
BE 530 contributes significantly to objective 4, which involves applying knowledge
in a global environment. This will be addressed through the study of a major industry
that operates on a global basis.
BE 530 contributes extensively to goal 2, Effective Communicators, which involves
the capacity to collaborate and communicate effectively with others. This will be
addressed through the weekly discussions essay-type exams and the individual project.
Detailed information about the learning objectives for the MSF program may be found
on the COB website at http://cob.umd.umich.edu/ms-finance-goals-and-objectives/
BE 530 contributes extensively to goal 1. Analytical skills in solving financial
problems, under the category of Business Economics analysis. Objective 1b involves
the ability to estimate the value of real and financial assets. This will be addressed
through the weekly discussions as well as through two exams and final examination.
BE 530 contributes substantially to goal 3. Persuasive and/or informative
communicator, which involves the ability to convey finance knowledge through
effective communication. This will be addressed through the weekly article
discussions and an individual project.
COURSE MATERIAL
Microeconomics, 6th edition, by Jeffrey Perloff (Addison Wesley, 2012).
ISBN: 978-0-13-139263-2
This course will not be using my EconLab
Subscription to the Wall Street Journal
OFFICE HOURS/ CONNTACT INFORMATION
Scheduled office hours are Tuesdays 4:00PM 5:30PM. I am very willing to help you
and meet with you at other times by appointment. Kindly send me an email with
several possible times that you are available and I will select a time that is also suitable
for me. The best way to contact me is by e-mail followed by a phone message. I check
my email and phone messages several times a day and will respond to you promptly,
except during weekends or holidays.
COURSE APPROACH
This course will cover 12 Learning Modules. Every module/lecture will become
available Monday 9:00AM Eastern Time (ET), commencing Monday September 8th.

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Each learning module contains the following:

Learning objectives: what you should know at the end of each unit.
PowerPoint presentation: teachers perspective of the material.
Class Notes: most important concepts/definitions within the lecture.
Application: relevance of the theory/concepts presented on each unit.
Quiz: test your knowledge of material presented.

This is a web-based course, designed for independent study. Students should expect to
spend at least 8 hours each week working on course materials. Learning
microeconomics is like learning math: topics build, and if students do not pace
themselves they will be unable to learn the material.
Traditional lecture courses teach using face-to-face lectures: lectures enable students to
cross-question their lecturer, and interact with each other. They also enable lecturers to
identify student needs. Of course, a web-based course has no formal face-to-face
lectures. Students need to participate and interact with each other differently. The
course has therefore been designed to encourage students to work on a regular basis,
with many opportunities for student participation through discussion forums every
week.
STUDY SMART
The following is the recommended study plan each week:
1.
2.
3.
4.

Read the assigned chapter from your textbook.

Become familiar with the objectives of the module.
Watch the PowerPoint presentation.
If you do not understand some points, reread the explanation in the
textbook or the PowerPoint presentation slowly and thoughtfully.
5. If you still don't get it, ask your teacher to explain it to you by posting your
questions in the Frequently Ask Question forum of our DISCUSSION
tools on Canvas.
6. Answer the application and quiz questions from each learning module.
7. Participate in the discussion forum to review how the topic fits in our
everyday lives.
GRADING
Your course grade will be determined by your performance in two exams, quizzes and
discussion forums. The final grade is computed based on the following weights:

Two Exams (30% each)

Quizzes
Discussion Forums (articles discussion)
Major Posting
Minor Posting

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60%
20%
20%
10%
10%

Exam Policies
There will be two exams (Midterm and Final), each worth 30% of your final grade.
The final exam will not be intentionally cumulative, although concepts developed in
earlier lectures may be employed in later chapters. The exams will be a combination of
short essays questions, and numeric problems. They will cover posted lectures, the
assigned textbook material and readings/articles. Exams on Canvas will be timed
(approximately 2 1/2 hours depending on the number of questions). Each Exam will be
available on Canvas on the indicated days listed below. You may begin your exam
anytime within the availability period. Please remember that every exam will force
completion. Once you start taking the exam, you must finish it. Students will not have
the opportunity to save their work and come back at a later time. The exam MUST be
submitted the first time it is launched. If you experience problems submitting the
exam, please send me an e-mail immediately and tell me what went wrong.
Exam #/Material covered
Midterm Exam (Lectures 1-6 / Ch. 2,3,6,7,8,9)
- Monday Oct 27th midnight ET
Final Exam (Lectures 7-12/ Ch. 11-14, 17, 19, 20)
Monday Dec 15th midnight ET

Dates Available (ET)

Thursday Oct 23th, 5:00PM ET
Thursday Dec 11th, 5:00PM ET

Quiz Policies
There will be 12 multiple choice-quizzes (one in each module). Your ten highest quiz
scores will account for 20% of your final grade (2% each). Quizzes will be available
every week Monday 9:00AM until Sunday Midnight.
You may begin your quiz
anytime within the availability period. Please remember that every quiz will force
completion. Once you start taking the quiz, you must finish it. Students will not have
the opportunity to save their work and come back at a later time. The quiz MUST be
submitted the first time it is launched. You will have an hour to complete each quiz.
These quizzes will help ensure that you have reviewed the readings for the week
carefully. There will be no make up quizzes.
Discussion Policies
Students will have access to Canvas Discussions tool to make weekly postings to
ASSIGNED articles. Participation in the discussions area will account for 20% of your
final grade. There will be eleven Discussion Forums throughout the semester (one in
each lecture except the week of Thanksgiving). Discussion forums will always start
on Wednesday 9:00 AM ET and will remain open until Saturday 5:00PM for Major
Postings and until Tuesdays 5:00PM of the following week for Minor Postings.
Articles will be posted on the Discussion area of Canvas on Wednesdays at 9:00AM
(ET). See the course schedule for a complete list of topics to be covered on the
discussion forums. Discussion postings must be from the current week's discussion to
count for grade, with no exceptions.

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The discussion forums will consist of two types of postings.

1. Major Posting:
A Major Posting is your response to an assigned discussion article (worth 10% of your
final grade). Students are required to sign up for a Major Discussions by selecting
from a list of topics to be discussed throughout the semester. The sign-up form will be
available on Thursday September 4th, 9:00AM on Canvas.
Major discussion postings should be 2-3 pages long, and they should include the
following:
Brief summary of problem or issue being discussed.
Answers to all questions.
Important conclusions and implications for our class.
List of all references used.
Major postings will be graded every week using the following rubric:

2. Minor Posting:
The second type of posting is your response/comments to another student's discussion
answers. This course also includes class participation for 10%. Since we do not meet,
the class participation is earned by discussing the answers given by your classmates.
These postings are quite different from the postings described above. They are simple
comments to the questions given by your peers. Since this 10% is class participation, I
am not allocating a certain percentage to each posting. I encourage students to post as
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many comments as they can. Keep in mind, though, that there are only few ways to
say the same thing. Therefore, I do not expect every student to participate on each
discussion.
A minimum of 10 postings throughout the semester will probably do, depending on
the quality. These 10 minor postings must come from 5 different weeks. I will give
students a mid-semester evaluation of their class participation. The whole idea is to
treat this exercise in the same way as if we were discussing this article in class. You
will not raise your hand to say "me too".
Students are not expected to post correct answers but are expected to correct and
clarify other students' answers in their "responses." In addition, students are
encouraged to discuss and respond as many original posting as they can to earn a total
of 10% for their final grade. Simple postings receive simple gradesthere are no
"make-up" discussions, so keep current and get involved.
Posting Guidelines

Is your answer really the same as another person's answer for one question? If so,
do not post your answer.
When responding to another student's posting please do not post "me too"
responses, or a response that duplicates somebody else's. Email is the best place to
say thanks for a great posting.
Cite all your references.
There are no limits on how many posts you can make which respond to other
students' answers/discussion posts.
Your discussion participation score will depend upon your ability to discuss
current economic/business events intelligently, and make a meaningful
contribution to the class.

Net-etiquette
When posting or responding to other posts in the Discussions area, remember to
always show respect for others. Discussions are not the place for personal attacks.
Points of criticism are allowed, even encouraged. However, when posting anything
critical, do so in a constructive manner focusing on ideas and reasoning not on any
person. Please refrain from using inappropriate language and/or slang. In other words,
be reasonable, constructive, and professional.

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BE 530 ECONOMIC ANALYSIS: FIRM & CONSUMER

Course Outline and Reading Assignments
Recommended textbook readings and assigned problems (AP) are designated by
Perloff 6/e. Assigned articles are posted on Canvas
*

All Lectures will be posted on Mondays 9:00 AM (ET)

Date

Topic, Reading Material & Assigned Problems (AP)

Sep 3

Introduction
Perloff: Ch. 1

Sep 8

Lecture 1: Supply and Demand

Perloff: Ch. 2
AP (Ch.2): 25,27,30,36
Discussion Forum 1: Supply and Demand Model
Available (Major Postings): Wed Sep10, 9:00AM Sat Sep 13, 5:00 PM
Available (Minor Postings): Wed Sep 10, 9:00AM Tue Sep16, 5:00 PM

Sep 15

Lecture 2: Applying the Supply and Demand Model

Perloff: Ch. 3
AP: 16,36,38
Discussion Forum 2: Applying the Supply and Demand Model
Available (Major Postings): Wed Sep 17, 9:00AM Sat Sep 20, 5:00PM
Available (Minor Postings): Wed Sep 17, 9:00AM Tue Sep 23, 5:00PM

Sep 22

Lecture 3: Firms and Production

Perloff: Ch. 6
AP: 6
Discussion Forum 3: Firm and Production
Available (Major Postings): Wed Sep 24, 9:00AM Sat Sep 27, 5:00PM
Available (Minor Postings): Wed Sep 24, 9:00AM Tue Sep 30, 5:00PM

Sep 29

Lecture 4: Costs
Perloff: Ch. 7
AP: 4,34
Discussion Forum 4: Costs
Available (Major Postings): Wed Oct 1, 9:00AM Sat Oct 4, 5:00PM
Available (Minor Postings): Wed Oct 1, 9:00AM Tue Oct 7, 5:00PM

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Date

Topic, Reading Material & Assigned Problems (AP)

Oct 6

Lecture 5: Competitive Firms and Markets

Perloff: Ch. 8
AP: 21,10,13
Discussion Forum 5: Competitive Firms and Markets
Available (Major Postings): Wed Oct 8, 9:00AM Sat Oct 11, 5:00 PM
Available (Minor Postings): Wed Oct 8, 9:00AM Tue Oct 14, 5:00 PM

Oct 13

Lecture 6: Applying the Competitive Model

Perloff: Ch. 9
AP: 41
Discussion Porum 6: Applying The Competitive Model
Available (Major Postings): Wed Oct 15, 9:00AM Sat Oct 18, 5:00 PM
Available (Minor Postings): Wed Oct 15, 9:00AM Tue Oct 21, 5:00 PM
Midterm Exam (Lectures 1-6 / Ch. 2,3,6-9)
Thursday Oct 23th, 5:00PM ET- Monday Oct 27th midnight ET

Oct 27

Lecture 7: Monopoly
Perloff: Ch. 11
AP: 28,44
Discussion Forum 7: Monopoly
Available (Major Postings): Wed Oct 29, 9:00AM Sat Nov 1, 5:00PM
Available (Minor Postings): Wed Oct 29, 9:00AM Tue Nov 4, 5:00PM

Nov 3

Lecture 8: Pricing and Advertising

Perloff: Ch. 12
AP: 19,20,42,43
Discussion Forum 8: Pricing and Advertising
Available (Major Postings): Wed Nov 5, 9:00AM Sat Nov 8, 5:00PM;
Available (Minor Postings): Wed Nov 5, 9:00AM Tue Nov 11, 5:00PM

Nov 10

Lecture 9: Oligopoly and Monopolistic Competition

Perloff: Ch. 13
AP: None
Discussion Forum 9: Oligopoly and Monopolistic Competition
Available (Major Postings): Wed Nov 12, 9:00AM Sat Nov 15, 5:00PM;
Available (Minor Postings): Wed Nov 12, 9:00AM Tue Nov 18, 5:00PM

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Date

Topic, Reading Material & Assigned Problems (AP)

Nov 17

Lecture 10: Game Theory

Perloff: Ch. 14
AP: 3, 11
Discussion Forum 10: Game Theory
Available (Major Postings): Wed Nov 19, 9:00AM Sat Nov 22, 5:00PM;
Available (Minor Postings): Wed Nov 19, 9:00AM Tue Nov 25, 5:00PM

Nov 24

Lecture 11: Uncertainty

Perloff: Ch. 17
AP: 24
No Discussion Forum Happy Thanksgiving

Dec 1

Lecture 12: Asymmetric Information &

Contract and Moral Hazard
Perloff: Ch. 19 Pages 640 650 - Ch. 20 Pages 667 - 677
AP: None
Discussion Forum 12: Asymmetric Information/Contract and Moral Hazard
Available (Major Postings): Wed Dec 3, 9:00AM Sat Dec 6, 5:00PM;
Available (Minor Postings): Wed Dec 3, 9:00AM Tue Dec 9, 5:00PM
Final Exam (Lectures 7-12/ Ch. 11-14, 17, 19, 20)
Thursday Dec 11th 5:00PM ET Monday Dec 15th midnight ET

GRADING SCALE
Final grades will be converted to letter grades according to the following table:
If your final grade
average is:
98 to 100
94 to 97
90 to 93
87 to 89
84 to 86
80 to 83
77 to 79
74 to 76
70 to 73
60 to 69
0 - 59

Your Letter Grade

Will Be:
A+
A
AB+
B
BC+
C
CD
F

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The scale above is suggestive in nature. A curve may be used in determining your
final course grade at the instructors discretion.
ACADEMIC INTEGRITY
The University of Michigan Dearborn values academic honesty and integrity. Each
student has a responsibility to understand, accept and comply with the Universitys
standards of academic conduct as set forth by the code of Academic Conduct, as well as
policies established by the colleges and schools. Cheating, collusion, misconduct,
fabrication and plagiarism are considered serious offenses. Violations will not be
tolerated and result in penalties up to and including expulsion from the University.
Plagiarism is taken very seriously as an act of fraud and theft against those earning
their degrees legitimately. Anyone caught cheating on any part of this course will fail
the entire course and the circumstances will be reported to the Office of the Dean in
accordance with the College of Business Statement on Academic Integrity.
UM- Dearborn Student Rights and Code of Conduct:
http://www.umd.umich.edu/policies_st-rights/
"In order to avoid any accusation of academic dishonesty, you should familiarize
yourself with this code. Ignorance of what constitutes academic dishonesty is not a
defense. Every student is bound by this code; educate yourself."

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