This subject is designed to develop an understanding of the value of economic reasoning in solving business problems and to develop the basic economic analytical skills required in managerial decision making.
|Academic unit:||Bond Business School|
|Subject title:||Managerial Economics|
Delivery & attendance
|Attendance and learning activities:||There are no penalties for non-attendance. However, attendance is highly recommended. There will be allocated topics/problems for discussion in each tutorial. There will be some review of lecture material, but this will be a relatively minor part of tutorials.|
|Prescribed resources:|| |
|[email protected] & Email:||[email protected] is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student.|
To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au
There are no co-requisites.
|Restrictions: ?|| This subject is not available to|
Must be admitted into an MBA Program.
This subject is not available as a general elective. To be eligible for enrolment, the subject must be specified in the students’ program structure.
Assurance of learning
Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.
At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.
Program Learning Outcomes (PLOs)
Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Students will become familiar with economic way of thinking as it applies the individual consumer, the individual firm and government decision making.
- Use economic models to analyse a situation in terms of economics.
- Relate the basic theory of economic theory and principles to current microeconomic issues and evaluate related public policy.
- Make informed and critical assessment and criticism of the public debate on many economic policy issues.
|Written Report||n/a||20%||Ongoing||1, 2, 3, 4.|
|Paper-based Examination (Closed)||Final Examination||50%||Final Examination Period||1, 2, 3, 4.|
|Paper-based Examination (Closed)||Mid-Semester Exam||30%||Week 7 (Mid-Semester Examination Period)||1, 2, 3, 4.|
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
|High Distinction||85-100||Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking.|
|Distinction||75-84||Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas.|
|Credit||65-74||Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above.|
|Pass||50-64||Usually awarded to students whose performance meets the requirements set for work provided for assessment.|
|Fail||0-49||Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines.|
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Students must check the [email protected] subject site for detailed assessment information and submission procedures.
Policy on late submission and extensions
A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the subject coordinator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension, the penalty of 10% per day late starts from the new due date.
Policy on plagiarism
University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.
Feedback on assessment
Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.
If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.
Economics of Effective Management; includes identifying goals and constraints, Recognize the nature and importance of profits, Understand incentives, Understand markets, Recognize the time, value of money, Use marginal analysis.
This topic includes: Factors that change quantity demanded and factors that change demand, the demand function, Consumer surplus. Factors that change quantity supplied and factors that change supply. The supply function, Producer surplus, Market equilibrium, Price restrictions and market equilibrium Price ceilings, Price floors, Comparative statics, Changes in demand, Changes in supply, Simultaneous shifts in supply and demand.
This lecture includes the elasticity concept, Own price elasticity of demand (Elasticity and total revenue, Factors affecting the own price elasticity of demand and Marginal revenue and the own price elasticity of demand). Students also learn the concepts of cross-price elasticity (Revenue changes with multiple products), Income elasticity and Other Elasticities.
Students will learn concepts of consumer behavior, Constraints (Budget constraint, Changes in income and Changes in prices). Consumer equilibrium, Comparative statics (Price changes and consumer behavior, Income changes and consumer behavior, Income and substitution effects). Other topics include applications of indifference curve analysis (Choices by consumers and Choices by workers and managers).
Students learn i) the production function (Short- versus long-run decisions, Measures of productivity, Manager’s role in production process, Algebraic forms of the production function and productivity, Isoquants and isocosts and Cost minimization and optimal input substitution), ii) The cost function (Short-run costs, Average and marginal costs, Relations among costs, Fixed and sunk costs, Algebraic forms of cost functions, Long-run costs and economies of scale).
Students will learn concepts i) Perfect competition (Demand at the market and firm levels, Short-run output decisions, Long-run decisions), ii) Monopoly (Monopoly power, Sources of monopoly power, Maximizing profit, Implications of entry barriers), Monopolistic competition (Conditions for monopolistic competition, Profit maximization, Long-run equilibrium, Implications of product differentiation) and Optimal advertising decisions.
Students will learn topics i) Overview of games and strategic thinking, ii) Simultaneous-move, one-shot games (Theory and Application of one-shot games), ii) Infinitely repeated games (Theory, Factors affecting collusion in pricing games, Application of infinitely repeated games), iii) Finitely repeated games (Games with an uncertain final period, Games with a known final period: the end-of-period problem), iv) Multistage games (Theory and Applications of multistage games).
Students will learn i) Basic pricing strategies (Review of the basic rule of profit maximization, A simple pricing rule for monopoly and monopolistic competition and A simple pricing rule for Cournot oligopoly), ii) Strategies that yield even greater profits (Exacting surplus from consumers, Pricing strategies for special cost and demand structures, Pricing strategies in markets with intense price competition).
Students will learn i) The mean and the variance, ii) Uncertainty and consumer behavior (Risk aversion, Consumer search), ii) Uncertainty and the firm (Risk aversion, Producer search and Profit maximization), iii) Uncertainty and the market (Asymmetric information, Signaling and screening), iv) Auctions (Types of auctions, Information structures, Optimal bidding strategies for risk-neutral bidders, Expected revenues in alternative types of auctions).
Students will discuss and learn i) Market failure (Market power, Externalities, Public goods and Incomplete information), ii) Rent seeking, Government policy and international markets (Quotas and Tariffs).