ECP 3703: Managerial Economics
Summer B, 2010
University of Florida
Instructor: Ying Tang
Office: MAT 400 (on the top floor of Matherly Hall)
Office Hours: MF 11:00am-12:15pm & by appointment
Phone: (352) 392 5805
Email: firstname.lastname@example.org (please include “ECP 3703” in subject line)
Class Time: MWF 9:30am-10:45am & TR 9:30am-12:15pm
Classroom: GER 121 (on the first floor of Gerson Hall)
Prerequisite: ECO 2023 Principles of Microeconomics and MAC 2233 Calculus
Textbook: W. Allen, N. Doherty, K. Weigelt and E. Mansfield, Managerial Economics: Theory, Applications, and
Cases, W.W. Norton &Co., Seventh Edition, 2009
Course Description: This course offers fundamental microeconomic principles most relevant for managers. Topics
include demand and consumer behavior, costs and production, market structure and equilibrium, pricing, strategic
interaction, uncertainty and asymmetric information. Besides basic concepts, profit maximization by firms and
market equilibrium in different settings are essential to the course. The course is expected to enhance your
understanding of how markets operate and develop your capability in decision making through economic thinking. It
also serves as a foundation for your further studies in business majors.
Course Outline and Readings:
Topics Contents Readings
0* Math Review Class Notes
1 Introduction to Managerial Economics Ch 1
2 Demand and Elasticity Ch 2
3 Consumer Behavior and Rational Choice Ch 3
4 Production and Costs Ch 4; Ch 5
5 Perfect Competition Ch 6
6 Monopoly and Monopolistic Competition Ch 7
7 Sophisticated Market Pricing Ch 8; Ch 9
8 Oligopoly Ch 10
9 Introduction to Game Theory and Auctions Ch 11; Ch 12
10 Risk, Uncertainty and Incentives Ch 13; Ch 14; Ch 15
*: This topic will be widely used in all other topics covered in this course.
Problem Sets: There will be three problem sets due on Friday, July 9th, 23rd and August 3rd. The problem sets will
be given at least one week before the due date. You are encouraged to work in groups but you have to write and turn
in the final answers individually. The answers should be turned in at the beginning of the class on each due date.
There will be a 15 point penalty for late submission.
Exams: There will be two midterm exams on Tuesday, July 13th 9:30am-11:30am and Tuesday, July 27th 9:30am-
11:30am and one final exam on Thursday, August 5th 9:30am-11:30am. All the three exams are non-cumulative,
covering contents taught before the exam (and after the previous one). The first midterm exam covers topics 1, 2, 3
and 4; the second midterm exam covers topics 5, 6 and 7; and the final exam covers topics 8, 9 and 10. The exams
are closed book, including multiple choice, short answer and problem solving questions. Only non-programmable
calculators are allowed to use in the exams. Using programmable calculators and any other electronic device will
result in a 15 point penalty.
Grading: The three problem sets, two midterm exams and the final exam count for your final grade as follows:
Problem Sets 30% (10% each)
Midterms 50% (25% each)
**: The final exam may include less questions than the midterms since less contents are covered.
Make-up Exam Policy: If you have to miss an exam because of health or other emergent reason, we can arrange a
make-up exam. However, (1) you must present a doctor’s note or other official certificate for the emergency; (2) you
suffer a five point penalty on the make-up exam regardless of the reason; (3) to be fair to students who take the
exams on time, the make-up exam may be a different format.
Suggestions: Calculus is a tool heavily used in class, math review would be helpful and you are encouraged to make
good use of my office hours when you have any problem. Reviewing the contents and practicing the problem sets
after class are helpful to fully understanding the concepts and preparing for the exams.
Calendar of Important Dates:
Monday Tuesday Wednesday Thursday Friday
June 28 29 30 July 1 July 2
July 5 No Class 6 7 8 9 Homework1 Due
12 13 Midterm Exam 1 14 15 16
19 20 21 22 23 Homework2 Due
26 27 Midterm Exam 2 28 29 30
August 2 3 Homework3 Due 4 Review 5 Final Exam 6 No Class
Classroom Expectations: Class attendance is required and you may not come to class late; to provide a comfortable
teaching and learning environment for all of us, electronic devices, such as laptops and cell phones, may not be
turned on in class.
Disabilities: I am committed to providing accommodations to students with disabilities following the guidelines and
procedures of the University of Florida policies.
Cheating or Academic Dishonesty: I adhere to and expect your adherence to the Honor Code of University of
Florida. Any violation of the Honor Code will be dealt with severely.