EC5204 Subject Outline 2015

Subject Outline

Subject Name: MANAGERIAL ECONOMICS

Subject Code: EC5204:03

Study Period: SP1, 2015

Study Mode: Internal

Campus: Townsville

Subject Coordinator: Sizhong Sun

College of Business, Law & Governance EC5204:03 Page 2

This subject outline has been prepared by [insert your name] for the College of Business, Law and Governance, Division of Tropical Environments and Societies, James Cook University. Updated 18 February 2015.

Q1. This subject is offered across more than one campus and/or mode and/or teaching period within the one calendar year.

Yes No

Q2. If yes [Q1], the design of all offerings of this subject ensure the same learning outcomes and assessment types and weightings.

Yes No

Q3. If no [Q2], _________________________ has authorised any variations, in terms of equivalence.

Copyright 2014 This publication is copyright. Apart from any fair dealing for the purpose of private study, research, criticism, or review as permitted under the Copyright Act, no part may be reproduced by any process or placed in computer memory without written permission.


Contents

Section 1. Subject at a Glance .............................................................................................................. 4 1.1 Staff contact details ........................................................................................................................ 4

1.2 Student participation requirements ................................................................................................. 4

1.3 Key dates ....................................................................................................................................... 4

Section 2. Subject Details ..................................................................................................................... 5 Welcome from the Subject Coordinator ................................................................................................ 5 2.1 Subject description ......................................................................................................................... 5 2.2 Subject and course learning outcomes ........................................................................................... 5 2.3 Learning and teaching in this subject ............................................................................................. 6 2.4 Student feedback on subject .......................................................................................................... 7 2.5 Subject resources and special requirements .................................................................................. 7

Section 3. Assessment Details ............................................................................................................. 8 3.1 Requirements for completion of subject.......................................................................................... 8 3.2 Feedback on student learning ........................................................................................................ 8

3.3 Assessment Tasks ......................................................................................................................... 8

Section 4. Other Information about Assessment and Student Support .......................................... 11 4.1 Submission and return of assessment .......................................................................................... 11

4.2 Plagiarism and referencing ........................................................................................................... 12

4.3 Important advice relating to examinations .................................................................................... 12

4.4 Student support ............................................................................................................................ 12

Section 5. Subject Calendar ................................................................................................................ 14 Section 6. Assessment Criteria Sheets .............................................................................................. 15


Section 1. Subject at a Glance

The following summary provides a quick reference to the most important aspects of this subject. Please ensure that you have read the entire subject guide in full. 1.1 Staff contact details The following staff members are responsible for the preparation or delivery of this subject. Please contact the relevant staff member if you have any concerns during the study period.

Teaching team Staff member Campus Room Phone# Email Consultation

times*

Subject Coordinator Dr Sizhong Sun TSV DA27-219 47814710 [email protected] Monday 3-5pm

Lecturer Dr Sizhong Sun TSV Tutor Dr Sizhong Sun TSV

*Other consultation times by appointment only. # other contact modes Skype address

1.2 Student participation requirements The JCU Learning, Teaching and Assessment Policy (4.3) indicates that, a 3 credit point subject will require a 130 hour work load of study-related participation (including class attendance) over the duration of the study period, irrespective of mode of delivery. This work load comprises timetabled hours and other attendance requirements, as well as personal study hours, including completion of assessment requirements. Note that attendance at specified classes may be a mandatory requirement for satisfactory completion of some subjects (Learning, Teaching and Assessment Policy, 5.9); and that additional hours may be required per week for those students in need of English language, numeracy or other learning support.

Key subject activities Time Day/ Date Room/ Location

Lecture 10:00 11:50am Monday Commences: 23 February, 2015

DA027-001

Tutorial 12:00 1:00pm Monday Commences: 2 March, 2015

DA027-007

For information on the days and times when lectures, tutorials, workshops, etc. are scheduled for all of your subjects, visit JCU Lecture Timetables at http://www.jcu.edu.au/ttable/ 1.3 Key dates A summary of the assessable items for EC5204 is provided in the table below. Please read through the assessment details presented later in this subject guide.

Item Supervised individual

assessment Weight Due Date

Census date see 2015 Study Period and Census Dates Last date to withdraw without academic penalty

see 2015 Study Period and Census Dates

1. Mid-Semester Test 20% See Section 5. Subject Calendar 2.1 Assignments : Part A, Project Presentation Internal students: to present in class; External students: to record their presentation, upload to Youtube, and email the link in.

5% See Section 5. Subject Calendar

2.2 Assignments : Part B, Project Written 10% 5PM Friday, 29 May 2015


Submission Internal students: to submit in the assignment box on Level 3 of DA27; External students: to submit via email. 2.3 Assignments: Part C, Research Essay Internal students: to submit in the assignment box on Level 3 of DA27; External students: to submit via email.

15% 5PM Friday, 5 June 2015

3. Final Exam x 50% Examination Period

You must obtain a final mark of at least 50% to pass the subject. Any student who does not achieve a pass in the invigilated components may, in exceptional circumstances, be reviewed by the School Assessment Committee.

Students who have completed less than 100% of the assessment will be subject to review by the School Assessment Committee which could result in an overall fail.

Section 2. Subject Details

Welcome from the Subject Coordinator Welcome to EC5204, Managerial Economics! In the words of Adam Smith People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is hoped that this subject will offer plenty of time for merriment and diversion whilst also providing ample opportunity to learn how best to either (a) conspire to raise prices; or (b) learn how to avoid being conspired against!

2.1 Subject description Managerial economics helps decision-makers use fundamental microeconomics concepts to improve their decision-making process. It focuses on those aspects of theory which are immediately applicable to the practical problems faced by decision-makers, both in the private and government sectors of an economy. Topics of greatest interest and importance to decision-makers are addressed, such as demand, production, cost, market structure, investment analysis, and decision making under conditions of risk and uncertainty. The subject is tailored to students who (envision to) work at a position that requires advanced economics skills. This subject is a core requirement for the graduate diploma and master in economics degree.

2.2 Subject and course learning outcomes The following table shows the alignment between the learning outcomes at the course and subject level and assessment. Students who successfully complete this subject will be able to:

Subject Learning Outcomes Assessment 1. Demonstrate extensive familiarity with important concepts of demand,

production and cost theory and their relevance to decision making. Lectures, tutorials, projects, and essay

2. Develop advanced understanding of what constraints are imposed on decision making within a firm and develop advanced skills to make use of methods with which decisions can be made under conditions of risk or uncertainty.

Lectures, tutorials, projects, and essay

3. Develop a comprehensive toolkit to apply the techniques and tools learnt in this subject to broad real world situations.


4. Develop advanced understanding of what market structure is and how the conduct of a firm is dependent upon that structure.


5. Develop critical awareness of techniques that can be applied to evaluate investment decisions in both private and public sectors.



Course Learning Outcomes Assessment Economic theory: Critically analyse economic theory from both historical and recent perspectives

Mid-semester test, final exam, project, essay

Sustainability: economic, social and environmental: Evaluate sustainable economic, social and environmental practices and value systems from different perspectives within a discipline and between disciplines

Project

Critical thinking: Critically analyse contemporary economic policy issues using appropriate models and make reasoned recommendations based on an intra- and interdisciplinary synthesis of theory and evidence

Mid-semester test, final exam, essay, project

Creative thinking: Apply creative thinking effectively to economic analysis and model building

Project

Oral communication: Present complex economic analyses and information appropriately to differing audiences using effective oral presentation skills

Project

Written communication: Present complex economic analyses and information appropriately to differing audiences using clear and fluent written communication

Essay, project

Economics and the Tropics: Appreciate characteristics specific to the tropics which are relevant to economic decision making

Project

2.3 Learning and teaching in this subject Economics cannot be remembered, it can only be understood.

This subject uses a combination of approaches to teaching and learning, including both student centred and teacher directed approaches. The content of the subject is disseminated using a variety of teaching strategies including workshops, group work, case studies, discussions, simulations, and readings. At the beginning of each workshop, you will be made aware of the expected learning outcomes, how such outcomes are relevant to the world of business, and the resources that support the learning outcomes of this subject.

Lectures are designed to introduce you to basic concepts, principles, and theories of managerial economics and demonstrate how they can be related to real-world situations. Tutorials are designed to further consolidate and widen the knowledge you have learnt from the lectures. In tutorials, various teaching-learning activities will be carried out. Typically, we will allocate time to discuss any issues and questions you may have from your study.

It is important for you to realise that the formal teaching only forms a small part of the time required to achieve the learning outcomes set for this subject, and that you need to allocate sufficient time to study this subject on your own. You should not assume that attending lectures and tutorials is a substitute for reading the text and other assigned references. Lectures and tutorials are mainly used to highlight some key aspects of the subject and therefore extensive after-class reading and exercises are very important.

You are expected to be an active participant in the learning process and are encouraged to participate in workshops and undertake weekly readings.

Beyond the classroom, your learning experience will be greatly enhanced if you collaborate and share ideas with other students. One easy way to achieve this is to form a study group with 2-3 other students with similar needs and expectations. Your lecturer can assist with this.


Assignments and Home-study: Most important of all is to remember that you need to be an active participant in the learning process you must do the learning yourself. Merely listening to the staff, or reading the text will not alone lead to an understanding of the subject. You must DO IT. Hence the importance of the assignments: they are not designed to simply test your understanding they specifically aim to give students the opportunity to DO IT.

Life experiences, wider reading and material covered in other subjects: Economics is a real world subject about real world problems things which are frequently discussed in the news, in private businesses, in homes, and in government departments. Those who strive to relate material discussed in class with other, every day experiences will be pleasantly surprised to discover how relevant the material is to everyday life. They will also be pleasantly surprised to find out how much easier it is to understand some of the issues and theories presented in this subject once that relevance is noted.

2.4 Student feedback on subject As part of our commitment at JCU to improving the quality of our courses and teaching, we regularly seek feedback on your learning experiences. Student feedback informs evaluation of subject and teaching strengths and areas that may need refinement or change. YourJCU Subject and Teaching Surveys provide a formal and confidential method for you to provide feedback about your subjects and the staff members teaching within them. These surveys are available to all students through LearnJCU. You will receive an email invitation when the survey opens. We value your feedback and ask that you to provide considered feedback for each of your subjects. Your feedback will be incorporated into teaching in the subsequent semester. 2.5 Subject resources and special requirements Prescribed Texts Keat, P. G., and Young, P. K., (2009), Managerial Economics, Global Edition (7e), Pearson Higher Ed

USA.

Further Reading There are numerous other good quality textbooks on Managerial Economics. It is always a good idea to read beyond the textbook. Boyes, w. (2004), The New Managerial Economics, Houghton Miflin. Not a bad overview book, although a

little on the light side. Brickley, J. A., Smith, C. W., and Zimmerman, J. L., (2004), Managerial Economics and Organizational

Architecture, 3rd Edition, McGrawHill. Huge breadth of topics, but little real detail good for those interested in getting an overview.

Lipczynski, J., and Wilson, J., (2004), The Economics of Business Strategy, Pearson. Not a bad overview book, although a little on the light side.

Mansfield, E., Allen, W. B., Doherty, N. A., and Weigelt, K., (2002), Managerial Economics Theory, Applications and Cases, 5th Edition, Norton. Probably covers fewer topics than Keat and Young, but does them in greater detail; good for students who like a mathematical approach.

Salvatore, D., (2004), Managerial Economics in a Global Economy, 5th Edition, Southwestern. Similar content and similar level to Keat and Young although it can get a little more technical in parts (e.g., the regression material is very detailed).

Samuelson, W. F., and Marks, S. G., (2003), Managerial Economics, 4th Edition, Wiley. A good all-round text that covers similar material to Keat and Young; although ideas are not always as well explained, and end-of chapter questions are very mathematical.

Online and Electronic Resources

The following electronic resources are relevant to this subject: The Australian Business Section: http://www.theaustralian.com.au/business The Economist: http://www.economist.com/

The following libguides available from the JCU Library website will provide details on referencing, plagiarism, findings marketing books and journals


http://libguides.jcu.edu.au/referencing http://libguides.jcu.edu.au/content.php?pid=63980&sid=472370

Learning & Writing Skills workshops and notes to assist with writing an essay; presentations etc

http://www.jcu.edu.au/learningskills/index.htm

Subject Website on LearnJCU Access the subject website through LearnJCU at learnjcu.jcu.edu.au for lecture notes, quizzes, handouts, assessment summaries and more! Login using your JCU email username and password. The site for this subject is opened to all participants enrolled in the subject at least seven days prior to the commencement of the subject. Browser requirements for LearnJCU are provided on the opening webpage of LearnJCU.

Section 3. Assessment Details

3.1 Requirements for completion of subject In order to pass this subject, you must:

You must obtain a final mark of at least 50% to pass the subject. In addition, the expectation is to obtain at least an average of 50% over all invigilated components (supervised individual assessment) within a subject to pass the subject overall. Any student who does not achieve a pass in the invigilated components may, in exceptional circumstances, be reviewed by the School Assessment Committee.

Students who have completed less than 100% of the assessment will be subject to review by the School Assessment Committee which could result in an overall fail.

It is important to be aware that assessment is always subject to final ratification following the examination period and that no single result represents a final grade in a subject (Learning, Teaching and Assessment Policy 5.21.). The moderation will preserve ranking of your results. 3.2 Feedback on student learning You will get feedback after each assessment item is completed. You can also email to the lecturer to obtain an ongoing feedback regarding your performance in this subject. 3.3 Assessment Tasks ASSESSMENT TASK 1: Mid-semester test

Aligned course & subject learning outcomes

Subject Learning Outcomes: S1, S2, S3, S4, S5

Group or individual individual Weighting / Length 20% Due date See Section 5. Subject Calendar

ASSESSMENT TASK 1: DESCRIPTION This test will be held during week 6, and will cover all material discussed up to week 6. The test will comprise some multiple-choice questions, some short-answer questions, and some problems or short-essay-style questions.

ASSESSMENT TASK 1: CRITERIA SHEET To achieve the desired subject learning outcomes and course learning outcomes, students are expected to obtain at least 50% of the full marks in the mid-semester test.

ASSESSMENT TASK 2: The Assignment Aligned course & subject learning outcomes



Group or individual individual Weighting / Length 30% (5% for Project Presentation, 10% for Project Report, and 15% for Research Essay)

Due date Project Presentation: See Section 5. Subject Calendar Project Report: 5PM Friday, 29 May 2015 Research Essay: 5PM Friday, 5 June 2015

ASSESSMENT TASK 2: DESCRIPTION Assessment Task 2 is composed of a project and a research essay. Details are as follows:

1. Project (15% in total) Your job is to analyse the profitability (or lack thereof) of a new business which produces a single (simple) product. You are expected to choose a business for your project. You may wish to discuss the suitability of a business with your lecturer early in the semester. The project will be assessed in two parts: a presentation and a written submission. Details are provided below.

Part A: The Presentation An Introduction to the industry and business (5%) (10 minutes + 5 mins discussion)

The aim of this presentation is to get you started on your project. You are expected to provide an overview of the business you have chosen to analyse by describing the type of business, the customer base and the type of industry in which the business operates. The presentation will be marked according to the criteria in the table below. The table will be used as a checklist, so please ensure that you attempt to answer each section. The word attempt has been highlighted deliberately. These presentations provide an opportunity for feedback - you are NOT being assessed for correctness (that is done on the final written submission). If, for example, you cannot work out how to define Q, then say so in your presentation - outlining a number of options you have considered and/or describing a few of the difficulties you are facing. You will not be marked down for getting it wrong, and with luck, someone from the audience may be able to help you with the problem during the discussion period.

Each presentation should last no more than 10 minutes. Immediately afterwards, 5 minutes will be allocated to a brief discussion of the issues raised within the presentation, therefore making the total time allocated to each presentation equal to 15 minutes.

Part B: Analysis of the business (10%) Word limit: 2,500 Maximum.

After providing a brief background discussion of your business, you should select the type of market model which most closely resembles the one that you will be operating in, carefully explaining your reasons for selecting that model. You will then draw a set of short-run cost curves relevant to your business/product. To do this, you will need to specify exactly what Q measures; carefully defining the product, the unit of sale, and the period (for example, Q = the number of single-serve ice-cream cones sold in a year). After having done that, you will need to conduct a break-even analysis of the business across a range of plausible prices, using other data to assess the likelihood of the business breaking even. Further details are provided below.

Your written submission will be marked using the assessment feedback sheet in the next section so PLEASE ENSURE YOU USE IT TO HELP PREPARE.

Production options Costs depend upon production methods. Hence, before estimating costs, you will need to consider a range of different production methods and decide which one to adopt. The theory relevant to this focuses on isoquants/isocosts (Lectures 3 and 4). There is NO EXPECTATION that you will be able to draw an exact diagram for your business, but you should (at the very least) be able to talk about production options in general terms. You should, for example, be able to talk about the degree to which the business can substitute one factor of production for another, using that reasoning to draw inferences about whether your business isoquants are likely to be flat or steep. In many cases, you will be able to comment about the relative price of the factors of production (e.g., business operating in developing country where wages are


relatively low), using that analysis to draw inferences about whether the business should optimally aim for a labour intensive or capital intensive method of production.

Costs Having chosen a particular production method and scale of operations, it will be possible to derive a set of short-run cost curves. To do this, you need to estimate (guesstimate?) the costs of production at your chosen scale of operation over the relevant period. Once you distinguish between those costs which are fixed and those which are variable, you will be able to draw a set of SR cost curves (Lectures 3 - 5).

Break-even analysis (Lectures 1 - 6) You should calculate several break-even points (at a range of plausible prices). You should then use as much socio-demographic data as you can find to discuss the likelihood of breaking even, making a loss, or making a profit. You should then comment on whether or not it is likely that this situation will continue in the LONG RUN, given the assumptions made about the structure of the market in which the business is operating.

Other Issues You should pick one of the following topics and provide a brief discussion of the way in which the ideas/concepts relate to your particular business.

Special pricing strategies for final and/or intermediate goods (Lecture 7, week 9) Special pricing strategies for imperfect competition (Lecture 8, week 10) Game Theory (Lecture 9, Week 11) Capital Budgeting (Lecture 10, week 12) Government Intervention/Regulation (Lecture 11, week 13)

The written submission will be marked according to the criteria on the schedule in the next section.

2. Research Essay (15%)

The task: Australias home loan market since 1980

Background advice: The 1980s saw many significant deregulations to the Australian financial market. Todays financial markets in Australia are almost completely free of direct regulation. As a consequence of the deregulations, competition between all the financial intermediaries has become ever strong. In recent years, the home loan market has become especially competitive due to the entrance of many non-bank financial intermediaries. In this assignment, you need to make use of the knowledge learnt in the market structure module to examine any changes in the market structure of the Australian financial market with particular reference to the home loan market. Your assignment may include the following parts.

A survey of major financial deregulations, particularly, those relevant to the home loan market since 1980.

Describe any changes in the market structure of the Australian home loan market since 1980. You may wish to choose several key points of time to address in which kind of market structure the home loan industry is, e.g., 1980 to start with, 2007 to finish, and any other points of time in between. Discuss why you believe the home loan industry was in that kind of market structure at that particular of point of time.

Enumerate some major methods used by home loan lenders in the most recent time to compete with their rivals (a table may be used). Critically evaluate the methods used by a financial intermediary of your own choice. Imagine your were, in 2007, the home loan manager of that lender and think any other methods you would use and elaborate why your methods would be appropriate.


To work on this assignment, you may find it useful to start with by reading some writings on Financial Intermediaries and Financial Regulation, Deregulation, Innovation, and Prudential Supervision from some other books or sources.

Home loan brochures, liftlets, and annul reports may be collected from home loan lenders. Articles addressing home loan issues from newspapers such as the Australian Financial Review, and sections on finance in other major newspapers, should be useful. Where possible, you may also try to hold discussions with a home loan officer from any home loan lender.

Word limit: within 2000.

ASSESSMENT TASK 2: CRITERIA SHEET See rubric on Section 6.

ASSESSMENT TASK 3: EXAMINATION

Aligned course & subject learning outcomes


Weighting / Length 50% Date In examination period Duration 2 hours see Special Consideration, Supplementary, Deferred and Special Examinations Requirements

ASSESSMENT TASK 3: EXAMINATION DESCRIPTION You will be required to complete a two-hour end of semester exam during the Universitys two-week exam period. The University will determine the date and time of the final exam and will provide exam timetables towards the end of the semester. The test format will be similar to that of the mid-semester test. That is, it will comprise some multiple-choice questions, some short-answer questions, and some problems or short-essay-style questions.

ASSESSMENT TASK 3: EXAMINATION CRITERIA To pass the exam, you need to obtain at least 50% of the full mark.

Section 4. Other Information about Assessment and Student Support

4.1 Submission and return of assessment The ability to adhere to deadlines is a highly desirable attribute that employers seek in our graduates. Right from the beginning, new students should acquire the habit of meeting deadlines for their work, by organising their study time appropriately. The following points apply to the submission of assessment

1. Extensions will be granted in cases of illness or personal issues (medical certificate/counsellors statement required). It is at the discretion of the subject co-ordinator/lecturer that extensions will be granted for inescapable, unexpected, documented work commitments (provide documentation). You should contact your lecturer before the due date if you are likely to require an extension.

2. Where no prior extension has been approved, late submissions will incur a penalty of 5% per day or part thereof. Weekends are treated as a single full day because university buildings are not usually accessible of over the weekend to allow for submission. Assessment tasks will generally not be graded after 14 days past the due date.

3. For internal students, assessment must be submitted in hard copy; for external students, assessment must be emailed to the lecturer (see above for lecturers email address). Internal students may not email or fax an assignment without prior approval from the Subject Coordinator/Lecturer.

Assessment items submitted in hard copy such as written assignment are to be submitted to the assignment box located as follows:

Townsville: School of Business, Building 27, Level 3 at top of spiral stairs in subject labelled box.


Please ensure that you have attached the School of Business Assignment Coversheet and date stamped your assignment with the date stamp. A copy of the cover sheet is available online at: http://www.jcu.edu.au/business/public/groups/everyone/documents/learning_object/jcudev_014008.pdf The assignment boxes will be cleared at 5.00pm each day and the date/time stamp on each assignment will be checked. Any assignments received after the due date and time will be deemed to be "late" and will not be collected until 5.00pm the following working day. Please note that some lecturers may have specific assignment requirements and it is your responsibility to check these with your lecturer.

4. The assessment will be returned with feedback in 21 days from the due date of the assessment.

4.2 Plagiarism and referencing Plagiarism occurs when writers claim ownership of written words or ideas that are not their own. Plagiarism is a form of cheating and any instances of plagiarism will be dealt with promptly according to University procedures. Please see the JCU Student Academic Misconduct Requirements Policy

Referencing is a systematic way of acknowledging the sources that you have used. Students should check out the very helpful online resources relating to academic writing, referencing and avoiding plagiarism at:

Writing and Maths Skills Online http://www-public.jcu.edu.au/learningskills/resources/wsonline/index.htm (In particular, the booklet Summarising, Paraphrasing & Avoiding Plagiarism is a very useful guide).

The Referencing Libguide What is Plagiarism?

4.3 Important advice relating to examinations If you experience difficulties or serious circumstances before or up to the day of your exam, which you believe may affect your ability to sit the exam successfully or perform at your best, you can apply for special consideration in the marking of your exam. Please see the JCU Special Consideration, Supplementary, Deferred and Special Examinations Requirements If you are unable to attend an exam at the scheduled time due to extenuating circumstances/circumstances beyond your control, you may apply for a deferred exam. Deferred exams are granted in exceptional circumstances such as severe medical conditions or family or personal trauma. For further information, visit

4.4 Student support James Cook University is committed to ensuring people with disabilities, injuries, illnesses or health conditions are able to participate to the fullest possible extent in the educational programs offered by the University and all other aspects of University life. Students with disabilities, injuries, illnesses or health conditions, who require special arrangements or consideration, should contact AccessAbility Services (see table below). Provide any additional campus-specific information relating to student support.

If you want further information regarding: Visit the URL AccessAbility Services http://www.jcu.edu.au/disability/index.htm Accommodation www.jcu.edu.au/accommodation/ Careers and employment www.jcu.edu.au/careers/ Childcare http://www.jcu.edu.au/student/support/JCUPRD1_066650.html Counselling www.jcu.edu.au/student/counselling/ Enrolment http://www.jcu.edu.au/student/enrolment/index.htm Feedback and complaints http://www.jcu.edu.au/student/complaints/index.htm Fees and financial support www.jcu.edu.au/student/Loans/studentloans/ Inclusion and engagement http://www.jcu.edu.au/studentequity/ Indigenous student support http://www.jcu.edu.au/austindigenousinfo/support/ Information for current students www.jcu.edu.au/student/ International student support http://www.jcu.edu.au/international/ Learning skills/ Language support http://www-public.jcu.edu.au/learningskills/ Library and computing services http://www-public.jcu.edu.au/libcomp/index.htm Librarians College http://www-public.jcu.edu.au/libcomp/library/contacts/liaison/index.htm Responsibilities and rights http://www.jcu.edu.au/student/responsibilities/index.htm


Review of Assessment and Student Access to Scripts and Materials Policy http://www.jcu.edu.au/student/assessmentexams/ Special Consideration, Supplementary, Deferred and Special Examinations Requirements http://www.jcu.edu.au/student/assessmentexams/ Student Academic Misconduct Requirements http://www.jcu.edu.au/student/assessmentexams/ Student Policies http://www.jcu.edu.au/policy/student/ Student Association http://www.jcu.edu.au/studentassoc/

Students enrolled at JCUS, JCUB or BJUT should access support services provided on their campus.


Section 5. Subject Calendar

Week/ Date Topic Readings Related Assessment Tutorial/Workshop

1/ 23 Feb

Lecture 1: Subject Introduction; Overview of Managerial Economics; The Firm and its Goal; Supply and Demand, Elasticity

K & Y Chapters 1 3, 4 (without appendix) Midterm test, Project, Final Exam -

2/ 2 Mar

Lecture 2: Demand Estimation and Forecasting K & Y Chapter 5 Midterm test, Project, Final Exam Tutorial 1: Chapter 3 probs 1, 2, 10 Chapter 4 probs 3, 7, 13, 18

3/ 9 Mar

Lecture 3: Production (abridged) K & Y Chapter 6, pp. 179-212

Midterm test, Project, Final Exam Tutorial 2: Chapter 5 probs 2, 5, 3

4/ 16 Mar

Lecture 4: Production (in more detail) K & Y Appendix 6B Midterm test, Project, Final Exam Tutorial 3: Chapter 6 probs 2, 3, 9

5/ 23 Mar

Lecture 5: The Theory of Costs K & Y Chapter 7 Midterm test, Project, Final Exam Tutorial 4: Chapter 6 probs 7, 12, 13

6/ 30 Mar

MID SEMESTER TEST Tutorial 5: Chapter 7 probs 3, 5, 7

7/ 6 Apr

Lecture 6: Pricing and Output with Perfect Competition and Monopoly

K & Y Chapter 8 plus Appendix 8B

Midterm test, Project, Final Exam Student Presentations

8/ 13 Apr

Student Presentations Student Presentations

9/ 20 Apr

Lecture 7: Special Issues in Pricing Cost-plus Pricing, Multi-product, Transfer, Revenue Maximisation

K & Y Chapter 10, pp. 392-416

Midterm test, Project, Final Exam Tutorial 6: Chapter 8 probs 3, 4 Chapter 8 Appendix 8B prob 3

LECTURE RECESS 10/

4 May Lecture 8: Pricing and Output with Imperfect Competition, Cartels, Price Leadership

K & Y Chapter 9, Chapter 10, pp. 385-391.

Midterm test, Project, Final Exam Tutorial 7: Chapter 10 probs 2, 9

11/ 11 May

Lecture 9: Game Theory and Asymmetric Information

K & Y Chapter 11 Midterm test, Project, Final Exam Tutorial 8: Chapter 9 probs 2, 3 Chapter 10 prob 14

12/ 18 May

Lecture 10: Capital Budgeting and Decision Making

K & Y Chapter 12, pp. 438 442, and 454 474.

Midterm test, Project, Final Exam Tutorial 9: Chapter 11 probs 1, 7

13/ 25 May

Lecture 11: Subject Overview and Brief Note on Trade Practices Act

K & Y Chapter 14 very brief skim

Tutorial 10: Chapter 12 probs 8, 10, 14

The sequence of some topics may change due to availability of staff, resources or due to unforeseen circumstances. Additional materials may be distributed in class.

College of Business, Law & Governance EC5204:03

Section 6. Assessment Criteria Sheets

Your presentation will be marked using the assessment feedback sheet so PLEASE ENSURE YOU USE IT TO HELP PREPARE.

Part A of Project (10%): Assessment Feedback Sheet

N P CR D HD

(a) Background Information

about business and customer

base 20%

Relevant Lectures &

reading : Week 1 Suggested data sources: ABS

Clear identification of type of product what will (does) the business produce, sell or supply?

Clear identification of region of operation and customer base, that specifically addresses the following:

Where will the business operate? Who/what type of person is most likely to want to

buy your product? Roughly how many of these people live close to

your proposed business location? Where will the customers make their purchases

(eg. shopfront, internet)?

(b) Background Information

about competitors

20% Relevant

Lectures & Reading :

Week 1

Clear description of competitors, that specifically addresses the following:

How many competitors do you have? (Ie. How many other businesses are located near your proposed location that sell a similar product?)

What are the relative sizes of these other business?

How concentrated is the industry? (Where possible, provide guesstimates of the 4-firm concentration ratio, namely the sum of market share of top four companies, to verify that)

How easy it is to enter/exit your industry (Consider barriers like high fixed costs, legislation, etc)?

Is there much integration, R & D, advertising or co-operation among businesses currently operating in the industry?

(c) Background information on

Technology 20%

Relevant Lectures : Weeks

3,4&5

What factors of production are you going to need?

Which of these are fixed, and which are variable?

(d) Consideration of market model

and estimation of demand/costs

30% Relevant

Lectures : Weeks 1-5.

Given the background information on the above topics; Which market model best represents the industry in

which you will be operating?

How do you plan to define Q? How do you plan to estimate/guesstimate demand for Q? Can you foresee any problems?

How do you plan to estimate/guesstimate your costs? What problems do you foresee?

(e) Presentation style 10%

Does your presentation exceed the time limit? Do you interact with your audience? How do you utilize technology (e.g. power point slides) in presentation?

Other Notes:

Legibility: If overheads or power point presentations are used, please ensure that:

The print-size is large enough for all to read, and There are not more than 5-8 lines on each page.

Clarity of speech: Try to avoid simply reading a prepared speech, and Try to speak slowly remember, some students come from non-English speaking backgrounds.

College of Business, Law & Governance EC5204:03

Timing: The ten-minute limit will be strictly imposed. Give yourself a few practice runs (in private) to check how long it will

take.

Part B of Project: Assessment Feedback Sheet

N P CR D HD

(a) Introduction & Market Structure

20%

Has the student clearly identified - the type of good or service that the business

will produce, sell or supply?

- the region in which the business will operate? - the type of customer that is likely to purchase

the good or service?

- other businesses that offer a similar good or service to your target group of customers ?

Has a concerted attempt been made to gather data on the industry structure?

Is the theory correct? Is the choice of market structure justified?

(b) Production 20%

Has a concerted effort been made to guesstimate the shape of the products isoquants and isocosts?

Do these guesstimates make sense? Does the discussion demonstrate a solid understanding of isoquants and isocosts?

(c) Costs, Demand and Pricing/Profits/

Break-Even 30%

COSTS: Has a concerted attempt been made to identify (realistic) fixed and variable costs?

Have opportunity costs been included? Is the distinction between fixed and variable costs appropriate?

Do the cost curves match the data? BREAK-EVEN ANALYSIS: Has a concerted attempt been made to gain data on plausible prices for the break-even analysis and on probable quantities which might be sold?

Are the calculations correct? Do the predictions which have been made with respect to future profits match the market model?

Overall quality of explanation

(d)Other Issues 20%

Are the issues which have been chosen relevant to the particular business?

Are they discussed/applied in a manner which demonstrates a solid understanding of the underlying theory?

(e) Overall quality of work (as an academic

piece of research) 10%

Do assumptions/conclusions made in one section of the project fit with those made in other sections of the project?

Has the student bothered to check spelling and grammar?

Is the project presented professionally? Has the project been well researched and correctly referenced.

EC5204 Subject Outline 2015

Documents

Transcript of EC5204 Subject Outline 2015