Business Economics

MECO 6303-501
The University of Texas at Dallas Fall 2005

Class Meeting Instructor: Octavian Carare

T: 7-9:45, SOM 2.117 Office: SOM 3.214
Email: carare@utd.edu (best reached by email)
Exams Office Hours: Tuesday 4:30-6:30
First: Sept 20 Or by appointment
Second: Oct 25 Tel: (972) 883-4770
Final: Nov 29
Teaching Assistant: Yiyu Shen
Course Website Office: SOM 3.807
www.utdallas.edu/~carare/meco6303.html Tel: (972) 883-4889
Email: shenyiyu@student.utdallas.edu
Prerequisites TA Office Hours: Monday 2:00 - 4:00
MATH 5404 or equivalent

COURSE OBJECTIVES
This course provides an overview of business economics, with an emphasis on applied
economic analysis. The main goal of the course is to define economic concepts and to
encourage students to apply the tools and methods presented in class to gain a better
understanding of economic phenomena. In this course we will focus on two directions:
microeconomics (perfect competition, monopoly and imperfect competition, game
theory) and macroeconomics (money, inflation, international trade, savings and the
financial system).

TEXT & READINGS

Textbook (Text): Business Economics by Steven Landsburg and N. Gregory Mankiw
In addition: online readings, slides and quizzes (check class website before each
meeting)

COURSE PREPARATION
Students are required to read the book chapters and online materials before class (see the class
schedule below) and also expected to attend all lectures. As preparation for the exams, students
may find it useful to answer the online quizzes and read the online material.

GRADING
Best of three exams 45% of final grade
Second best of three exams 35% of final grade
Lowest of three exams 20% of final grade

MECO 6303 / 501 / Fall 2005 Page 1 of 3

There will be no make-up exams. If an exam is missed for reasons other than documented illness,
the student will receive a grade of zero for that exam. There will be absolutely no exceptions from
this rule. The final grade will be determined solely by a weighted average (weights given above)
of the three exam grades.

SCHOLASTIC DISHONESTY
The university has policies and discipline procedures regarding scholastic dishonesty. Detailed
information is available at http://www.utdallas.edu/student/slife/dishonesty.html. Students are
expected to maintain a high level of responsibility with respect to academic dishonesty.
Students who violate university rules are subject to disciplinary penalties which include dismissal
from the university. Since such dishonesty harms all students and the integrity of the university,
these policies will be strictly enforced.

EXAMINATIONS
See the course outline below for the material required for each exam. The exams will
have two parts: multiple choice and short-answer questions.

TENTATIVE COURSE OUTLINE

DATES Topics and required readings

Supply and demand; equilibrium

8/23
Text chapter 1

Prices, costs, efficiency, gains from trade

8/30
Text, chapter 2

Competition; Consumer and producer surplus

9/6
Text, chapter 7

Monopoly and price discrimination

9/13
Text, chapter 10

FIRST EXAM: 7:00-8:30

9/20
Covers everything discussed in class between 8/23 and 9/13
After exam (8:40-9:45): Game theory—basic concepts (no readings assigned).

Market power; Collusion and oligopoly (antitrust, vertical mergers, predatory

pricing, collusion). Text, chapter 11
9/27
Game theory I (Nash Equilibrium, static and dynamic Prisoners’ Dilemma, mixed
strategies). Text , chapter 12 and class slides

MECO 6303 / 501 / Fall 2005 Page 2 of 3

 DATES Topics and required readings

Collusion and oligopoly II (Cournot and Bertrand competition, price competition in

10/4
the linear city model, entry). Text, chapter 11 and online slides.

Game theory II – Auctions and other applications

10/11
Readings on class website

SECOND EXAM: 7:00-9:45

10/18
Covers everything discussed in class between 9/20 and 10/11

International Trade
10/25
Text, chapter 17

Measuring the Cost of Living

11/1
Text, chapter 18

Production and Growth

11/8
Text, chapter 19

11/15 Savings, Investments and the Financial System

Text, chapter 20

Open-Economy Macroeconomics: Basic Concepts

11/22
Text, chapter 21

FINAL EXAM: 7:00-9:45

11/29
Covers everything discussed in class between 10/25 and 11/22

MECO 6303 / 501 / Fall 2005 Page 3 of 3