Course Guide

for
ECO 301B

MANAGERIAL
ECONOMICS
 1st Semester Academic Year 2021- 2022

COLLEGE OF BUSINESS STUDIES

DHVSU Main Campus, Villa De Bacolor, Pampanga
DON HONORIO VENTURA STATE UNIVERSITY
Cabambangan, Villa De Bacolor, Pampanga, Philippines
Tel. No. (6345)458 0021 Local 211
URL: http://dhvsu.edu.ph

1st Semester Academic Year 2021- 2022

I. COURSE DESCRIPTION

Managerial Economics is an advance economics course that deals with the application of
economics theory and methodology to managerial decision making within different organizations.
Specifically, it handles topics about demand analysis, production cost estimation, competition under
different market structures, forecasting and decision making under uncertainty

II. COURSE OBJECTIVES

1. Develop the skills and knowledge of managerial decision making necessary for a career
as an Economist, Policy makers and planners;
2. Develop a critical knowledge of recent research in some key areas of economic societal
planning;
3. Understand comprehensively the interface between the different Economic theories,
models and methodologies; and
4. Appreciate the role of the society, private enterprise and public policy makers in
achieving higher economic efficiency.

III. LEARNING OUTCOMES

1. Comprehensive understanding of the use of economic

theory in making sound management decision.
2. Understand the concept of demand, supply, Law of Demand, Law of Supply; the impact of
non- price factors to the level of demand and supply to the market equilibrium; and to
estimate the level of responsiveness of quantity as caused by changes in price, income,
and price of other goods.
3. Identify and explain the different theories and models of consumer buying behavior.
4. Understand the different components of production process.
5. Evaluate the different strategies that will suit to each market structures. Understand the
concept of oligopoly, the role and nature of strategic interaction, and kinked demand
curve. Specifically, understanding what is happening in the telecommunication industry,
why prices are high while quality services are low as compare to other neighbouring
countries.
6. Describe the concept of market positioning and its implications to the management pricing
decisions.
7. Understand the role of the government in the market economy.

IV. GRADUATE ATTRIBUTES

In- depth knowledge Learning Outcomes

 1. Comprehensive understanding of the use of economic 1,2,3,5,6
theory in making sound management decision.
2. Understand the concept of demand, supply, Law of 2,3
Demand, Law of Supply; the impact of non- price factors to
the level of demand and supply to the market equilibrium;
and to Estimate the level of responsiveness of quantity as
caused by changes in price, income, and price of other
goods.
3. Identify and explain the different theories and models of 3,5,7
consumer buying behavior.
Communication
1. Convey ideas clearly both oral and written in English 5,7
2. Prepare, analyze, and evaluate reports, proposals and 4,5,7
concept papers
3. Apply the principles of the different forms of communication 5,7
Critical thinking, creativity and problem solving
1. Conduct environmental scanning 4,5,6,7
2. Conduct feasibility study and other business research/ plan 4,5,6,7
Independence and Innovativeness
1. Demonstrate leadership qualities 1,5
2. Demonstrate the values hard work, patience, diligence, 1,5,7
innovativeness, and risk taking
Media and Technology Skills
1. Develop the ability to access, retrieve and disseminate 4, 5, 7
information using IT
2. Proficient in MS Office Applications 5, 7

V. PREREQUISITES

The pre requisites for this course is Microeconomics, also students are additional
requirements Computers with Internet are required for this course. To access the learning
Management Moodle. A scientific calculator is required, preferably with several memories,
square root functionality, logarithms, correlation (regression) analysis, and financial analysis
(e.g. present values and the internal rate of return).

VI. COURSE OUTLINE

Module 1: Fundamentals of Managerial Economics

a. Nature and Scope of Managerial Economics
b. Managerial Economics and the Nature of the Firm
c. Measurement of profit, goals and cost

Module 2: Demand Theory, Analysis and Estimation

a. Demand Theory
b. Factors determining demand
c. Elasticity
d. Demand Estimation

Module 3: Production and Cost Function

a. Factors of Production
b. Production function
c. Types of Cost
 Module 4: Managing Competition in different market structures
a. Perfect competition
b. Imperfect competition
- Monopoly
- Monopolistic Competition
- Oligopoly
c. Game Theory and Competitive Strategy
d. Pricing Practices

Module 5: Economics of Organization

a. Business Expansion Rules
b. Classifications of Business Expansion

Module 6: Long Term Investment Decisions

a. Decision Tree
b. Risk Analysis
c. Capital Budgeting

Module 7: Role of Government in the Market Economy

a. Market Efficiency
b. Externalities
c. Government Regulations

VII. COURSE MATERIALS

Baye, Michael. Managerial Economics and Business Strategy.

9th Edition. Boston: McGraw-Hill Irwin, (2017).
Textbook. ISBN: 978-1-259-29061-9

Managerial Economics, 14th Edition

Mark Hirschey and Eric Bentzen

Managerial Economics and Business Strategy

By: Michael Baye and Jeff Prince
Publisher: McGraw-Hill, 2010

Pictures and all other illustrations were downloaded from GOOGLE

VIII. COURSE SCHEDULE AND STRUCTURES

STUDY PERIOD TOPIC LEARNING ASSESSMENT

ACTIVITIES
Week 1 Unit 0: Vision, Mission, Core
Values
September and Outcomes
14-18, 2021
The University Vision, Mission
and Core Values;
 The College of Business Studies
Mission and Goals;

The Bachelor of Science in

Business Administration major in
Economics Outcomes
Week 2-3 Part I: Fundamentals of Class discussion Assignments:
Managerial Economics forum Case study
September a. Nature and Scope of Quiz
20- Managerial Economics Readings Forum discussion
October 02, 2021 b. Managerial Economics and participation
the Nature of the Firm Case study
c. Measurement of profit, goals
and cost
Week Part II. Demand Theory, Analysis Class discussion Assignments:
4-6 and Estimation forum Case study
a. Demand Theory
October 04- 23, b. Factors determining demand Readings Quiz
2021 c. Elasticity
d. Demand Estimation Case study Forum discussion
participation
Video presentation

Week Part III. Production and Cost Class discussion Assignments:

7-8 Function forum Case study
a. Factors of Production
October 25- b. Production function Readings Quiz
November 06, c. Types of Cost
2021 Case study Forum discussion
participation
Online Games
Week 9
November 08- 13, Mid- term Examination
2021
Week 10-12 Part IV. Managing Competition in Class discussion Assignments:
different market structures forum Case study
November 15- a. Perfect competition Quiz
December 04, b. Imperfect competition Readings Forum discussion
2021 - Monopoly participation
- Monopolistic Case study
Competition
- Oligopoly Online Games
c. Game Theory and
Competitive Strategy
d. Pricing Practices
Week Part V. Economics of Organization Class discussion Assignments:
13- 14 a. Business Expansion Rules forum Case study
b. Classifications of Business Quiz
December 06- 18, Expansion Readings Forum discussion
2021 participation
Case study

Online Games
 Week Part VI. Long Term Investment Class discussion Assignments:
15-16 Decisions forum Case study
a. Decision Tree Quiz
January 03- 15, b. Risk Analysis Readings Forum discussion
2022 c. Capital Budgeting participation
Case study

Week 17 Part VII. Role of Government in Class discussion Assignments:

the Market Economy forum Case study
January 17-22, a. Market Efficiency Quiz
2022 b. Externalities Readings Forum discussion
c. Government Regulations participation
Case study Project: Reflection
paper
Week 18 Final examination
January 24- 29,
2022

IX. CLASS POLICIES AND PROCEDURES

1. Ensure you are enroll in the online learning management system

(LMS) portal of the class.
2. Make it a habit to log in and check your LMS account.
3. Download the copies of course syllabus and modules.
4. Always come to the online class prepared.
5. Always have with you a copy of the course guide and modules.
6. Prepare a separate notebook for Managerial Economics.
7. Students are encouraged to participate in the class
discussion forum.
8. All assignments, activities and the like should be submitted on
the time. Failure to comply would merit a certain deduction but will still be accepted.
9. Work/ do your own assignments.
10. Avoid any forms of CHEATING, as cheating is a mortal sin in this class. Plagiarized work will
automatically merit a 5.0 or failing mark for that particular output.
11. Enjoy Learning!

X. COURSE REQUIREMENT AND ACTIVITIES

A. 1. Assignments (Midterm Grade)

2. Project (Final Term Grade)
B. Quiz
C. Major examinations: Mid- term and Final term exam
D. Online discussions (Forums)
XI. GRADES
Projects/Assignments 40%
Quiz 30%
Major Examinations 20%
Participation (Online Discussion Forums) 10%
TOTAL 100%

Sample of Rubrics for assessment

XII. GRADING SYSTEM