MANAGERIAL ECONOMICS KERIM KESKIN

ECON 505 Office: SB 325

SPRING 2017 Office Hours: Mon & Tue, 14:15 15:45
8 ECTS E-mail: kkeskin@ada.edu.az

ADA University
School of Business

1. Course Description:
Managerial Economics draws heavily from microeconomic theory to provide tools and
techniques to facilitate decision-making in the managerial context. This course will be
divided into two parts. First we study how the market works: what consumers demand,
what producers supply, how an equilibrium arises, etc. Second we move to the strate-
gic world of managers and study decision-making problems in which economic agents
strategically interact.
2. Objectives/Goals:
In this course you will learn the tools and techniques to facilitate decision-making in the
managerial context and how to apply them in various real life problems. Upon successful
completion of this course, you will be able to
Solve the utility maximization problem of consumers.
Explain production decision of firms.
Describe the functioning of markets.
Analyze supply-demand and equilibrium in the market.
Examine how economic agents interact in the market.
Understand the nature of strategic decision making.
Apply fundamental theory of microeconomics to various contexts in real life.

3. Assessment of Learning Objectives/Goals:

Through quizzes and exams, your understanding of theoretical foundation of managerial
economics will be assessed. These quizzes and exams may also include applied problems
to assess your success in applying your theoretical knowledge to real-life problems.
4. Text:
Course book :
S Damodaran (2010). Managerial economics. 2nd edition.
Suggested readings:
LM Froeb et al. (2010). Managerial economics: a problem solving approach. 2nd edition.
TCG Fisher et al. (2010). Managerial economics: a strategic approach. 2nd edition.
5. Course Requirements and Grading:
Grading is based on three elements: (i) four out of five quizzes (24%), (ii) a midterm
exam (36%), and (iii) a final exam (40%). The expected student workload is 35 hrs
for attending classes, 90 hrs for reviewing the course material, 15 hours for out-of-class

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reading, a total of 50 hrs for quiz and exam preparation, and a total of 5 hrs for taking
quizzes and exams.
(i) Quizzes: There will be five quizzes in total. They will be given in class. They
will include question(s) about the topics previously covered in class. You are not allowed
to use books, class notes, laptops, smart phones, etc. during quizzes. For each student,
his/her quiz with the lowest grade will not be considered in the determination of his/her
final grade.
(ii iii) Midterm/Final Exams: Midterm exam is planned to be given at the end
of Week 7. The final exam will be cumulative, including all topics covered throughout the
semester. Nevertheless, topics that were covered after the midterm exam will be given
more weight in the final exam. They are both closed book exams. You are not allowed
to use class notes, laptops, smart phones, etc. during exams. For these exams, make-up
exams can be given under certain circumstances (if you have an official and valid excuse).
Though, in order to sustain fairness among students, it is customary to offer a make-up
exam which is more difficult than the normal one.
6. Grading Procedure:
Please check the following link for grading policies of our university:
http://www.ada.edu.az/en-US/Pages/fh_grading.aspx
7. Course Structure:
There will be two class meetings per week, 75 minutes each. English is the official language
of instruction at ADA University. Therefore, we will speak and write in English. You are
always encouraged to ask any course related questions during class.
8. Communication:
I will post course-related announcements on and upload course-related documents to
PowerCampus (when necessary). You are responsible to check this site regularly. You
can access PowerCampus on campus or off campus via a remote connection. Furthermore,
you can always send me an email should you have any questions.
The link for PowerCampus is: http://selfservice.ada.edu.az/Web/Home.aspx
9. Topics and Class Schedule:
Week 1: An Introduction
Week 2-3: Demand Side: Consumers Problem Chapter 2, 3, 4
Week 4-5: Supply Side: Producers Problem Chapter 5, 6, 7, 8
Week 5-6: Equilibrium under Perfect Competition Chapter 9
Week 7: Review and MIDTERM EXAM
Week 8: Monopoly Chapter 10
Week 9: Price Discrimination and Bundling Chapter 11
Week 10: Decision-making under Risk
Week 11-12: Game Theory
Week 13: Imperfect Competition Models Chapter 10
Week 14: Market Failures Chapter 14, 15

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10. Attendance Policy:
I will strictly follow ADA Academic Regulations for attendance policy, which indicates
that you will automatically fail this course if you attend less than 75% of the classes.
Please also check the following link:
http://www.ada.edu.az/en-US/Pages/attendance_policy.aspx
11. Withdrawal Policy:
Last day to withdraw from this course is March 31, 2017.
For more information on withdrawal policy please see:
http://www.ada.edu.az/en-US/Pages/withdrawal_policy.aspx
12. Disability Policy:
ADA University provides upon request appropriate academic accommodations for qual-
ified students with documented disabilities. Any student who feels he/she may need an
accommodation based on the impact of a disability should notify the Office of Disability
Services about his/her needs before the start of the academic term.
Please contact Dr. Elnur Eyvazov, Director of the Office of Disability Services and Inclu-
sive Education; Phone: 4373235/ext.249; Email: eeyvazov@ada.edu.az
13. Mission of the School of Business:
ADA Universitys School of Business mission is to prepare global and socially responsible
graduates through excellence in applied learning and scholarship by bringing the world
to Azerbaijan and Azerbaijan to the world.
ADA Universitys School of Business aspires to be a globally recognized premier institution
in the Caspian Region in the creation and transmission of knowledge and the development
of new generations of leaders, driving change for the betterment of society. Through our
innovative and entrepreneurial spirit we foster ethical and social responsibility.
14. Statement About Academic Integrity:
We value the personal and academic integrity as emphasized in ADA University honor
code which strives to be consistent in word and deed in order to instill an environment of
fairness and justice.
15. Student Code of Ethics:
Please check the following link:
http://www.ada.edu.az/en-US/Pages/honor_code.aspx
16. Instructors Bio:
Kerim Keskin received his BA degree from Sabanc University, and his MA and PhD
degrees from Bilkent University all in the field of economics. His fields of research interest
are game theory and behavioral economics.