ECO 5023: Managerial Economics
Department of Economics
University of Texas, San Antonio
Instructor: Dr. Yue (Sara) Hu
Class: BV 4.304A, M, W 12:00-1:15pm
Office Hour: BV 4.342, M, W 1:15-1:45pm
Campus phone and Email: 210-458-2521, firstname.lastname@example.org
Managerial Economics by Mark Hirschey, (South-Western 12e)
Sound decision-making is critical to business success. In this course, we discuss how to apply
principles of microeconomics to various managerial decisions. The goal of this course is twofold.
We will illustrate microeconomic concepts through applications to real world issues, thus to
enhance analytical skill and to develop economic thinking; we will also focus on how to use
quantitative analytical tool to solve business problems.
The first section of the course examines essential concepts regarding consumer behavior such as
demand analysis and elasticity of demand, using examples from telecommunications, airlines, and
the oil industries to illustrate the main points. We move from these basic concepts to studying how
firms maximize their profit by optimizing production and cost. The final section of the course
focuses on how firms behave when they have market power. Topics include differences between
imperfectly competitive markets and competitive markets, optimal pricing for firms with
Class participations are extremely important; there is so much to learn from class discussions.
Team work is encouraged, except during the exams. Progress counts. Don’t be frightened by those
optimization problems. No matter where you stand at the beginning of the course, I want you to
feel satisfied at the end of the course.
Throughout, the focus of the course will be on applications. You should expect to leave the course
with a firm grip on how to think as an economist, and the ability to apply tools from the course to
a variety of business problems.
There will problem sets, one for each chapter (except chapter one). An answer key will be provided the
day after the homework is due. No late homework is allowed.
Your course grade will be determined by your performance on the following items:
Problem Sets 20%
Exam 1 25%
Exam 2 25%
Final Exam 25%
Everyone has to do a presentation on a case study about topics that will be covered in class. Each
presentation will last 20-30 minutes. Each student has to report the date and the topic that will be
presented the third week of the semester.
Grading is on an absolute scale: 90%-100% is the A range, 80%-89% is the B range, 70%-79% is the C
range, 60%-69% is the D range, and 59% or below is an F.
Academic honesty is expected and required. You must do all of your homework and exams
STUDENTS WITH DISABILITY
Under no circumstances will special accommodations be provided to any student who is not registered
with the Office of Disability Services. Special support services, including registration assistance and
equipment, are available to students with disabilities through the Office of Disability Services
http://utsa.edu/disability/students.htm. Students are encouraged to contact the office located at BV
1.302 (458-2945) to make arrangements.
We will use WEBCT on regular basis for this course. I will be posting some notes and previous exams on
WEBCT. After each exam, your grade will be posted automatically.
Any student missing an exam due to an excused absence must inform me within one week of the
excused absence. If you miss an exam and do not provide an excused absence, you receive for that
exam a zero. If you miss a class, it is your responsibility to obtain notes from classmates.
Anyone feeling that a dispute exists after the grading of an exam may submit a written grievance.
The grievance should identity the item in dispute and provide arguments supporting the student’s
position. Grievances must be submitted within two class periods following the return of the exam.
Attach your entire exam or quiz to the grievance.
I will not tolerate cheating in anyway. Be careful about that. A student caught cheating could receive an
F in the course and that student could be suspended or dismissed from UTSA as well.
(Subject to change)
1. Chapter 1: Introduction to Managerial Economics
2. Chapter 2: Economic Optimization
3. Chapter 4: Demand Analysis
4. Chapter 5: Demand Estimation
5. Chapter 7: Production Analysis and Compensation Policy
6. Chapter 8: Cost Analysis and Estimation
7. Chapter 10: Competitive Markets
8. Chapter 11: Performance and Strategy in Competitive Markets
9. Chapter 12: Monopoly and Monopsony
10. Chapter 13: Monopolistic Competition and Oligopoly
11. Chapter 14: Game Theory and Competitive Strategy