UNIVERSITY OF ALBERTA School of Business
Department of Marketing, Business Economics and Law
BUEC 311 A2: Business Economics, Organization and Management Fall 2007 Instructor: Rodney Beard, B.A, Diplom-Volkswirt, PhD
Classroom: BUS 1-09, 10:00 – 10:50 am MWF Office Hours: TBA
E-mail: [email protected] Course Description:
Underlying economic forces often drive decision-making in business organizations. Making business decisions involves a complex interaction of business strategy, microeconomics, finance, and various interconnected organizational functions. Poor decisions will result from ignoring such interactions and economic forces.
Topics in the course include the organization of firms and industries, buyer behaviour/meeting customer needs and strategic decision-making regarding production, resources, risk/uncertainty, scale/scope product pricing and gaining competitive advantage involving the use of game theory, In contrast to courses in economic theory that concentrate on public policy by governments with the objective of maximizing economic benefit for society as a whole, this course will focus on the individual business and how it can use microeconomic theory to maximize its own profits.
Course objectives:
1. To solidify and expand one’s knowledge of microeconomics.
2. To gain an appreciation of the market system, its strengths and weaknesses, and some policy implications thereof.
3. To be able to interpret micro-economic events as reported in the media, and to understand related policy issues.
Text:
Pindyck, Robert S. and Rubinfeld, Daniel L. Microeconomics sixth edition, 2005, Pearson Prentice Hall.
Although the text is essential as a reference and the course schedule generally follows the chapters laid out in the text, the heart of the course will be contained in the presentations by the instructor in class, which will vary in timing and content from the text. Many of the theories presented will be illustrated through classroom experiments with the participation of the students.
Assessment:
Course grades will be through a combination of assignments, midterm and final exams. If you miss a midterm exam or fail to submit an assignment on time, you will receive a grade of zero on that component unless you provide the instructor with appropriate documentation of the reason you missed the exam or the assignment submission. This might include doctor’s notes for illness, police reports for accidents, etc. With appropriate documentation, the weight of the missed assignment or exam will be added to the final exam weight. No make-up assignments or exams will be offered.
If you feel that the exam or assignment grading was incorrect, you must advise the instructor within one week following the return of the exam or assignment. That advice must include a brief outline of why you believe the grade was incorrect. If you are absent when the assignment or exam in question is returned, the one week time limit will be from the date the exam or assignment was first returned to the class, not from the date that you actually received your exam or assignment. Any request for re-grading will be considered to be a request to re-grade the entire exam or assignment, not just the issue that you raised.
Deferred final exams will be allowed for students following the University’s procedures for obtaining deferrals noted in:
http:www.bus.ualberta.ca/BCom/Current/PolicyProcedures/deferredexams.htm#1.
Policy about course outlines can be found in §23.4(2) of the University Calendar.
The University of Alberta is committed to the highest standards of academic integrity and
honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students
are particularly urged to familiarize themselves with the provisions of the Code of student Behaviour (online at www.ualberta.ca/secretariat/appeals.htm) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in
suspension or expulsion from the University.
The weights for marking are as follows:
Assignment 1 5%
Midterm 1 Ch 1 – 7 20%
Assignment 2 5%
Midterm 2 Ch 8 – 13 20%
Assignment 3 5%
Final exam 45%
Assignment due dates and exam dates are noted on the enclosed course schedule. The assignments are to be submitted to the BUEC B1 course assignment slots outside of the
general office located on the third floor of the business office by 4:00 pm on the stated due date and they must include the instructor’s name on the first page. Alternatively, assignments can be handed to the instructor in class on the due date.
Grading:
Descriptor Letter Grade
Grade Point Value
Percentage
Excellent A+
A A-
4.0 4.0 3.7
95-100 90-94 85-89
Good B+
B B-
3.3 3.0 2.7
80-84 75-79 70-74 Satisfactory C+
C C-
2.3 2.0 1.7
65-69 60-64 55-59
Poor D+ 1.3 50-54
Minimal Pass D 1.0 45-49
Failure F 0.0 <45
Exams:
The first and second midterm exams will include material covered as shown in the course schedule below. The final exam will be cumulative, and will cover material from the entire course.
Bring picture ID to each exam, along with your own calculator with sufficient battery power.
Students are expected to follow the student code of behaviour on plagiarism and all other matters.
Course Schedule
(Other than assignment and exam dates, the schedule is subject to change by the instructor)
Date Topics Covered Read
Wed, Sep. 5 Introduction
Fri., Sep. 7 Review of Supply and Demand Ch. 1, 2
Mon., Sep. 10 Review of Supply and Demand Ch. 2
Wed., Sep. 12 Review of Consumer Behaviour Ch. 3
Fri., Sep. 14 Review of Individual and Market Demand Ch. 4 Mon, Sep.17 Review of Individual and Market Demand Ch. 4 Wed., Sep. 19 Uncertainty and Consumer Behaviour; Assignment 1 Due Ch. 5 Fri., Sep. 21 Uncertainty and Consumer Behaviour Ch. 5
Mon., Sep. 24 Production and Its Cost Ch. 6
Wed, Sep. 26 Production and Its Cost Ch. 6
Fri., Sep. 28 Reserved for schedule adjustment
Mon., Oct. 1 Production and Its Cost Ch. 7
Wed. Oct. 3 Production and Its Cost Ch. 7
Fri., Oct. 5 Profit Maximization and Competitive Supply Ch. 8
Mon., Oct. 8 Midterm Exam 1 Ch 1 – 7
Wed., Oct. 10 Profit Maximization and Competitive Supply Ch. 8 Fri., Oct. 12 The Analysis of Competitive Markets Ch. 9 Mon., Oct. 15 The Analysis of Competitive Markets Ch. 9 Wed., Oct. 17 Market Power: Monopoly and Monopsony Ch. 10 Fri., Oct. 19 Market Power: Monopoly and Monopsony Ch. 10
Mon., Oct. 22 Market Power: Pricing Ch. 11
Wed., Oct. 24 Market Power: Pricing; Assignment 2 Due Ch. 11 Fri., Oct. 26 Market Power: Monopolistic Competition and Oligopoly Ch. 12 Mon., Oct. 29 Market Power: Monopolistic Competition and Oligopoly Ch. 12 Wed., Oct. 31 Reserved for schedule adjustment
Fri., Nov. 2 Game Theory and Auctions Ch. 13
Mon., Nov. 5 Game Theory and Auctions Ch. 13
Wed., Nov. 7 Midterm Exam 2 Ch 8 – 13
Fri., Nov. 9 Investment, Time and Capital Markets Ch. 15 Mon., Nov. 12 Holiday
Wed., Nov. 14 Investment, Time and Capital Markets Ch. 15 Fri., Nov. 16 Reserved for schedule adjustment
Mon., Nov. 19 General Equilibrium and Economic Efficiency, Assignment 3 Due
Ch. 16 Wed., Nov. 21 General Equilibrium and Economic Efficiency Ch. 16 Fri., Nov. 23 Markets With Asymmetric Information Ch. 17 Mon., Nov. 26 Markets With Asymmetric Information Ch. 17
Wed., Nov. 28 Externalities and Public Goods Ch. 18
Fri., Nov. 30 Externalities and Public Goods Ch. 18
Mon., Dec. 3 Review
Wed., Dec.5 Review-Last day of classes
