Erik C. Helm
Office: 333C Purnell Hall                                                                           Office Hours:
Phone: 831-6432                                                                                       Tuesday and Thursday
E-mail: helme@udel.edu                                                                            11:00 a.m. - 1:00 p.m.
Homepage: www.udel.edu/Economics/helme

Text:

Managerial Economics, 7th ed., Maurice & Thomas

Course Requirements and Grade Determination (Weights):

Problem Sets and Quizzes                               = 20%
2 Midterm Examinations (25% each)              = 50%
Final Examination                                           = 30%

Tentative Examination Dates:

First Midterm Exam                           October 4
Second Midterm Exam                       November 8
Final Exam - will be given during the regularly scheduled final exam time period for this course

Tentative Course Outline:

1. REVIEW
        1. Introduction to Managerial Economics Ch. 1
                 1. Profit Maximization 1.2
                 2. Market Structure 1.4
        2. Supply/Demand and Elasticity Ch. 2 Ch. 3

2. CONSUMER THEORY-  The Theory of Consumer Demand
        1. The Budget Constraint and Consumer Preferences  Ch.6, 6.1 - 6.3
        2. Utility Maximization 6.4
        3. Income Changes and Income Effects  6.6
        4. Empirical Demand Specification and Estimation  Ch. 7 Ch. 8

3. THEORY OF THE  FIRM:  PRODUCTION AND COST
        1. Production Concepts
                1. Production in the Short Run  Ch. 9
                         (1) Law of Diminishing Marginal Returns 9.2
                         (2) Explicit and Implicit Costs 9.4
                         (3) Marginal Cost and Marginal Product 9.6
                2. Production in the Long Run  Ch. 10
                         (1) Production Isoquants and MRTS 10.1
                         (2) Isocost Curves 10.2
                         (3) Expansion Path and Returns to Scale 10.4 10.5

4. PROFIT MAXIMIZATION AND MARKET STRUCTURE
        1. Perfect Competition
                1. Basics  Ch. 12
                        (1) Short Run -Maximization and Market Supply  12.3-12.4
                        (2) Long Run -Maximization and Market Equilibrium  12.5-8.7
 
        2. Monopoly
                1. Basics Ch.13
          (1) Monopoly Power and Its Effects  13.1-13.2
                        (2) Profit Maximization 13.3-13.7
        3. Oligopoly & Game Theory   Ch. 14 Ch. 15
                1. The Prisoner's Dilemma 14.1
                2. Sequential Decisions 14.2
                3. Price Fixing Cartels 15.2
        4. Price Discrimination Ch. 16
5. RISK AND UNCERTAINTY
1. Probability Distributions 17.1-17.2
2. Expected Utility 17.3-17.5
3. Profit Maximization Under Risk 17.6-17.8

Procedures and Policies:
            1.  Attendance is mandatory.  You are responsible for all assignments, notes, announcements, and materials presented in class.
            2.  Once in class, stay until the end of the lecture.
            3.  All assignments are to be turned in on the day they are due.  Any late assignments without a University recognized excuse will automatically start at 50% credit. No late assignments will be accepted without a University recognized excuse after the assignment has been returned to the class.
             4.  If a midterm or final exam is missed only students with University recognized excuses will be able to take a makeup exam.
            5.  Cheating is not tolerated.  Confirmed cases of academic dishonesty will be pursued in accordance with University regulations.
            6.  Passing grades in ECON 151 and MATH 201 are the prerequisites for this course.