Course Syllabus-Fall 2015

A. Course Information
Course Number

ECO 811

Course Name

Business Economics

Section

11

Credit Hours

Department

Department of Economics

Campus

Beirut

Meeting Time and Place

Tuesday @ 5:00 p.m. BB 1210

Number of Hours per

week
Tutorial Lab Hours

Course Description

Prerequisites

This course is an overview of microeconomics from a managerial decisionmaking standpoint, emphasizing and applying the basic concepts to selected
problems. Topics include the firms behavioral and managerial theories,
demand estimation, cost determination, forecasting, price & output
determination in theory and practice, and government regulation.
ECO 201 Microeconomics and ECO 202 Macroeconomics

B. Instructor Information
Instructor Name

Abdallah Dah

Office Location

BB 1604

Telephone Extension

+ 961 1 786 456 Ext. 1164

Email

aadah@lau.edu.lb

Office Hours

M W F 9:00-10:00 a.m. & T 4:30-5:00 p.m.

C. Textbooks and Content Coverage

Required Textbook(s)

MgGuigan, Moyer, and Harris, Economics for Managers, 11th Edition

References:
1. Evan J. Douglas. Managerial Economics Analysis and Strategy, 4th
Edition.
2. Trefor Jones. Business Economics and Managerial Decision Making.
3. Worthington, I, Britton, C. & A. Rees, Economics for Business,
Blending Theory and Practice, Prentice Hall, 2001.
4. Michel R. Baye, Managerial Economics & Business Strategy , 4th
Edition

Adnan Kassar School of Business | Course Syllabus

D. Goals, Outcomes and Learning Methods

The School of Business at LAU follows processes to assess and evaluate how well the school accomplishes its program
educational goals and learning outcomes. These measures assist departments and faculty members to continuously improve
programs and courses.
Program Learning Goals
MBA

Course Learning
Outcomes
This course will be used
towards fulfilling the
following learning outcomes:

Goal 1: The graduate will utilize appropriate techniques to effectively solve

business problems.
Goal 2: The graduate will be an effective team player.
Goal 3: The graduate will possess an understanding of the ethical and social
dimensions of decision making process.
Goal 4: The graduate will possess professional communication skills.

Specific Course Learning Outcomes: Upon the completion of this

course, students will be able to:
Use microeconomic concepts and reasoning to solve managerial
problems
Apply quantitative techniques in solving managerial problems
Understand how different market structures affect the market
outcomes
Select and analyze relevant data and propose an effective solution to
a business problem.
This course will also be used to assess the following learning
outcome in the MBA program:

General Skills
This course will contribute to
developing the following:

General Business and

Management Knowledge
Areas
This course will contribute to
developing knowledge of the
following:

General Master's
Knowledge

Written Communication
Analytical thinking
Information Technology
Application of knowledge
Reflective Thinking

Economic, political, regulatory, legal, technological, and

social contexts of organizations in a global society.
Group and individual behaviors in organizations and society.
Systems and processes in organizations, including planning
& design, production/operations, supply chains, marketing,
and distribution.
Information technology and statistics/quantitative methods
impacts on business practices to include data creation, data
sharing, data analytics, data mining, data reporting, and
storage between and across organizations including related
ethical issues

Leading in organizational situations

Thinking creatively

Adnan Kassar School of Business | Course Syllabus

Making sound decisions and exercising good judgment under uncertainty

Integrating knowledge across fields

Teaching Methodology

The class will be taught through lectures, transparencies, and problem solving
sessions at the end of each chapter.

Required Technology
Skills

Regularly check the course Blackboard page.

E. Performance Evaluation
40%

Midterm Exam

45%

Final Exam

10%

Written Report
Attendance & Class Participation

Total

University Grading
Scale
A letter grade will
be determined based
on the University
grading scale, as
follows:

100%

Grade

Quality Points

Guidelines over 100

90

3.67

87 - 89

B+

3.33

83 - 86

3.0

80 - 82

2.67

77 - 79

C+

2.33

73 - 76

70 - 72

C-

1.67

67 - 69

D+

1.33

63 - 66

60 -62

59

5%

Adnan Kassar School of Business | Course Syllabus

Summary of Topical Coverage:

4
Lectures

1- Introduction to Business Economics and SPSS Training (SPSS)

1st Lecture

2- Demand Analysis
Price Elasticity of Demand
Income Elasticity of Demand
Cross-Price Elasticity of Demand
Using Elasticities in Managerial Decision Making

2nd Lecture

3- Estimation of Demand, Cost, & Production Functions (Handout). 3rd Lecture

Statistical Estimation of the Demand Function.
Simple Linear Regression Model.
Multiple Linear Regression Model.
4th Lecture
Problems in Applying the Linear Regression Model.
4- Business and Economic Forecasting (Handout).
Significance of Forecasting.
Selection of a Forecasting Technique.
Time Series Analysis.
Smoothing Techniques.
Barometric Techniques.
Econometric Models.

4th Lecture

5th Lecture

5- Optimization Techniques (Handout).

6th Lecture
Incremental Reasoning.
Unconstrained Optimization
Constrained Optimization & Lagrangian Multiplier Techniques.

Midterm

7th Session

6- Price & Output Determination: Pure, Monopolistic Competition,

& Monopoly.
The Market Concept.
The supply Concept.
Individual, Firm, and Market Demand Functions.
Price-Output Determination Under Pure Competition
Market Price Determination.
Sources of Market Power for a Monopolist.
Price and Output Determination for a Monopolist.
Government Regulation and Natural Monopoly

8th Lecture

9th Lecture

Adnan Kassar School of Business | Course Syllabus

8- Price & Output Determination: Oligopoly.

Oligopolistic Market Structures.

Interdependencies in Oligopolistic Industries.
Ignoring Interdependencies.
Price Leadership.
The Kinked Demand Curve Model.
Game Theory inside Oligopoly

9- Pricing Techniques and Analysis

10th Lecture

11th Lecture
12th Lecture

Cost-Plus Pricing
Incremental Reasoning
Tying, and Bundling
Price Discrimination
Peak-Load Pricing
Two-Part Tariff

10- Risk and Uncertainty in Managerial Decision Making

13th Lecture

Decision Making under Conditions of Uncertainty

Decision Making under Risk:

-Expected Value Criterion

-An Absolute Measure of Risk (Standard Deviation)
-A Relative Measure of Risk (Coefficient of Variation)

11- Agency Theory Revisited

Where Do Agency Problems Come From?

Where Do Coordination Problems Come From?
Combating Agency Problems
Combating Coordination Problems

14th Lecture

Adnan Kassar School of Business | Course Syllabus

F. Policies
LAU Attendance Policy

Make-Up Policy

Students are held responsible for all the material presented in the classroom, even
during their absence. Makeup work and exams, if any, will be according to the
rules spelled out in the course syllabus.
Students cannot miss more than two weeks of classes in any semester (one week
for summer term) excused or otherwise, in any course, and still receive credit for
that course.
However, Specific schools can opt for a more stringent rule. Any specific
attendance regulations should be mentioned in the syllabi. Instructors are to
inform their departments and the Office of the Dean of Students of any
prolonged, unexplained absence of a given student.
Students who exceed the allowed number of absences must withdraw from the
course; otherwise, the course grade will be recorded by the instructor as F or NP,
depending on the type of grading in the particular course. In highly exceptional
cases, students may be given special permission by the Academic School
Councils to continue in the course.
No make-up exams are granted except if the appropriate
Missing an Exam
excuse presented to the guidance office within a week of
the absence date is deemed valid by the instructor.
Late submitting
projects/assignment

All assignments should be submitted on time.

Lost session due to

instructors absence

All lost sessions are to be made up. When the number of

lost days (resulting from suspension of classes, for any
reason) in a regular semester add up to 10, they are to be
made up as follows:
Three days, to be made up according to a schedule set at
the discretion of each Faculty member.
Seven days, to be scheduled by a decision of the
University Planning Council, in consultation with the
Faculty. The 10 day period is seen as the period beyond
which no makeup can be considered, and credit loss
becomes inevitable. Alternately, the semester may be
extended, and students may have to bear any additional
expenses resulting from such an extension.

Adnan Kassar School of Business | Course Syllabus

Withdrawal Policy

WI (Early Withdrawal) indicates withdrawal from the course, after the Late
Registration Period and until the end of the 5th week of the Fall and Spring
semesters, and until the 10th day of the Summer modules. It has no quality
points. It does not count in the GPA, and no credits will be added to the
students record.
WP (Withdrawal Pass) indicates withdrawal from the course, after the 5th week
and until the end of the 10th week of the Fall and Spring semesters, and
from the 11th day of classes until 18th day of the Summer modules. It has
no quality points. It does not count in the GPA, and no credits will be added
to the students record.
WF (Withdrawal Fail) indicates withdrawal from the course, after the 5th week
and until the end of the 10th week of the Fall and Spring semesters, and
from the 11th day of classes until 18th day of the Summer modules. It has
no quality points. It does not count in the GPA, and no credits will be added
to the students record, but is counted as repeat.
A Withdrawal Form must be submitted to the Registrars Office.

G. Additional University Policies

Student
Code
of The provisions and stipulations of LAU Student Code of Conduct are applicable
to all students taking courses in the School of Business, regardless of whether or
Conduct
not they are pursuing a degree in the School. Refer to LAUs website for the
complete policy
http://www.lau.edu.lb/governance-policies/policies/student_code_of_conduct.pdf
Copyright laws

Refer to LAUs policy on Copyrights and Patents on the web or the academic
catalogue
http://www.lau.edu.lb/governance-policies/policies/copyright_patent_policy.pdf

Academic Dishonesty Students are expected to conduct themselves in accordance with the highest
standards of academic honesty. Academic misconduct for which a student is
and Plagiarism
subject to penalty includes all forms of cheating, forgery, or plagiarism.
Plagiarism is defined as the use of someone elses ideas, words, or work, as if it
were ones own, without clearly acknowledging the source of that information.
Any student found cheating in an exam, fabricating, falsifying, or using any other
form of academic dishonesty in the preparation of a paper or a project, shall
receive a zero on that exam, project or paper and will be issued a Disciplinary
Warning. A student found plagiarizing or cheating for a second time shall receive
an F grade for the course, as well as a second Disciplinary Warning. Refer to the
policy on academic dishonesty on LAUs website
http://www.lau.edu.lb/academics/arp/g/rules_procedures.php
Policy on Incompletes

A grade of "I" indicates incomplete work. This grade is exceptionally given by

the instructor when a student, with a valid excuse, did not sit for the final exam,
and/or did not present the final project. Students will not be entitled to an I

Adnan Kassar School of Business | Course Syllabus

Course Evaluation

grade, unless they have a passing grade of the completed material, throughout the
course, and so long as they have not exceeded the allowed number of absences.
Not completing the course or not sitting for Final exam does NOT entitle you for
a grade of "I". A student will have to complete a request form for an Incomplete
Grade and submit it to the School Academic Council with the necessary input
from the instructor of the course.
Completion of the online course evaluations is
required. Students will not be able to access their
course grades until they have completed the course
evaluations.
For Fall and Spring terms, the online course
evaluations, by students, shall begin ten days before
the end of classes and continue till end of reading
period; for the Summer modules, said evaluations
shall start three days before end of classes and
continue till end of reading period.