GC UNIVERSITY, FAISALABAD

FACULTY OF ECONOMICS & MANAGEMENT SCIENCES

Lyallpur Business School (LBS)

Course Specifications

Managerial Economics
ECO-512

Spring- 2024

http://www.gcuf.edu.pk/
 COURSE SPECIFICATIONS
Basic Information
Course Title: Managerial Economic
Course Code: ECO-408

Course credits/week: Theory: 03 Lab: Nil Total: 03

Pre-requisite(s): Micro &Macro Economics
Co-requisite(s):
Program(s) on which the course is given: BBA- Morning evening Semester 6th
Is the course major or minor element of the program: Major: Major Minor:
Department offering the program: LBS
Department offering the course: LBS
Academic year/level: 4
Revision #:
Last revised on (date): 30-02-2023

Overall Aims of the Courses

Course Description:
This course provides an overview of economic tools and analytic approaches available to the
manager for business decision making. It includes such topics as pricing, forecasting, demand
analysis, production and cost analysis, and macroeconomic policy as it affects the business
environment.
Course Objectives are: The purpose of this course is to apply micro economic concepts and
techniques in evaluating business decisions taken by firms.
Learning Outcomes:
After the completion of Managerial Economic, students should be able to

 Understand the internal and external decisions to be made by managers. To make

students understand current policies in trade, commerce, fiscal/monetary policy,
industry and agriculture.
 Design competition strategies, including pricing, product differentiation, research
& development, and marketing, according to the natures of products and the
structures of the markets.

Class Format& Weekly Work Plan:

To achieve the above these are the main course components:
1st – 2nd Week
The nature and scope of Managerial Economics. Part I # 1 by Dominick Salvatore Page # 1-
31.Origin economic ,the scope of managerial economic, the basic process of decision making ,the
theory of the firm ,the nature and function of profit, Business Ethics, The international framework
of managerial economics
3rd – 4th Week
Demand, supply, and equilibrium Analysis. Part II by Dominick Salvatore Page # 39-72 The
demand for a commodity ,market demand from individual to market demand behind the market
demand, Market supply ,when is a market in equilibrium ,change in demand and supply.
5th – 6th Week
Measurement of Demand . Part II by Dominick Salvatore Page # 81-101Price elasticity of
demand ,Income elasticity of demand ,cross price elasticity of demand, Using elasticity in
managerial decision making,
CASE STUDY
Pricing admission to an art gallery Page( ) principles of micro Economics by N.Gregory
Mankiw
7th – 8th Week
Optimization techniques and new management tools. Part II by Dominick Salvatore Page # 117-
136. Methods of Expressing Economic Relationships. total average and marginal
relationship .optimization Analysis ,Profit Maximization New management tools.

Seminar
th
9 week Mid Semester Examination

10th – 11th Week

Demand Estimation Part II by Dominick Salvatore Page # 158-187.Problem identification
Application of Regression Analysis: Demand estimation. Demand forecasting.
12th – 13th Week
Production and cost Analysis Part III by Dominick Salvatore Page # 247-270. Production
functions. Total, Marginal and Average Product. Revenue and Cost in Production. Production
function estimation production with one input ,production with two inputs, optimal combination
of inputs. Profit maximization.
14th – 15th Week
Cost Theory and Estimation Part III by Dominick Salvatore Page # 299-311.The nature of
costs ,short run and long run cost function , cost curves cost minimization or plant size and
economic of scale.
16th – 17th Week
Market Structure and pricing Practices. Part IV by Dominick Salvatore Page # 353-364 Market
structure and degree of competition, perfect competition ,price discrimination under perfect
competition.

Our weekly class Instructions and discussions will follow this format:

Week Module Intended Main Learning Objectives

1–2 The nature and scope of  Understanding, the of Origin economic ,the
 scope of managerial economic, the basic
process of decision making ,the theory of the
firm ,the nature and function of profit, and
Managerial Economics. Business Ethics.
 Learning about The international framework of
managerial economics.
 Understanding How the data science work.

 Understanding about The demand for a

commodity ,market demand from individual to
market demand behind the market demand,
Demand, supply, and
3–4 Market supply ,when is a market in
equilibrium Analysis.
equilibrium ,change in demand and supply.
Learning about how market forces work .
Assigment # 1
 Understanding about Price elasticity of
demand ,Income elasticity of demand ,cross
price elasticity of demand.
5–6 Measurement of Demand
 Learning about managerial decision making
by Using elasticity.

 Understanding about Methods of Expressing
Economic Relationships.
Optimization techniques  Understanding about the Total average and
and new management marginal relationship . optimization Analysis .
7–8
 Learning about how firm ,Profit Maximization
tools
through New management tools.
 Quiz # 1

 Understanding about Problem identification.

 Learning about Application of Regression
Demand Estimation Analysis:
 Understanding about Demand estimation.
10 – 11 Demand forecasting.

12 – 13 Production and cost  Understanding how firm take decision about

Analysis Production. After that discuss about Total,
Marginal and Average Product. Revenue and
Cost in Production.
 learning about Production function estimation
of production with one input ,production with
two inputs,
 Understanding how use of optimal
combination of inputs and Profit
 maximization.
 Assigment # 2

 Understanding about The nature of costs

 Learning about, short run and long run cost
Cost Theory and function , cost curves cost minimization.
14 – 15 Estimation.  Understanding about plant size and economic
of scale.
 Quiz # 2

 Leaning the about perfect

competition, ,monopoly and monopolistic
Market Structure and
16 – 17  Understanding how market work through
pricing Practices.
market structure

Required Learning Resources

Text Book(s): Text Book(Student
must buy this book) Managerial Economics principle and worldwide
Title, Author, Edition, Publisher) Application by Dominick Salvatore .Siddhartha
K.Rastogi Eight Edition

.
Recommended books: 1. Managerial Economics: A Problem Solving
Approach, 5th edition by Luke M. Froeb | Brian T.
McCann | Michael R. Ward | Mike Shor(2018).
2. • Hirschey, M. Managerial Economics, (updated
edition) U.S.A. Thomson South-Western.

Reference Books: 1. ISE Managerial Economics & Business Strategy

Paperback – International Edition, January 1, 2020
by Michael Baye and Jeff Prince (Author)•
2. Managerial Economics: Theory, Applications, and
Cases Eighth Edition by W. Bruce Allen, Keith
Weigelt,
3. Managerial Economics: Tools for Analyzing
Business Strategy by Thomas J. Webster updated
edition)
4. Managerial Economics For Dummies March 2013
by Robert Graham

Facilities Required for Teaching and Learning

Whiteboard.(use in physical classes)

-Multimedia
Assignments Schedule& Quiz
No. Week Week Due QUIZ TESTS
Assigned
Two quiz tests will be conducted during the
1 3 6 semester, best of one will be counted for final
2 12 14 grade. There will be no makeup of these tests.

Examination / Weighting of Assessments& Quizzes

Quizzes + Assignments + Class Participation + 20 %
Projects
Mid-semester examination 30 %
End-semester examination 50 %

Grading Criteria
Letter Grade Percentage Marks
A 80 -100
EXCELLENT
B 65-79.99 GOOD
C 50-64.99
SATISFACTORY
D 40-49.99 PASS

Instructor Responsibilities:
In keeping with the format of this class, I see myself as your immediate
supervisor. In that sense, I plan to mentor each of you so that you learn how to
make the best decisions possible, to understand and apply key marketing
concepts, and to prepare you to become productive employees upon graduation.
I will do my best to help each of you grow into the best marketer you choose to
become. Thus, besides class time, where I will often put you on the spot, I expect
there will be many times we will communicate outside of class, and I will do my
best to help you in a timely fashion.
Student Responsibilities:
You are expected to arrive to class on time, professionally dressed, and
prepared for the day. You should be fully prepared to discuss and debate the
course material assigned for that date. You are expected to participate at all
levels and offer objective praise and criticism of your classmates’ analyses and
conclusions. This course is not for the meek or timid. You must contribute to a
greater understanding of Consumer Behavior. This course is a combination of
doing (homework), thinking, and discussing.

Useful Tools / Advice:

This course is time and labor intensive. Be certain to schedule enough time in your
weekly planning to accommodate.
You need to have good access to the Web and an e-mail account.
Please always do your best work.
It is expected that all work you submit for a grade in this class be original and prepared
for this class only.
I am always willing to see my students and will go out of my way to schedule meetings.
Please make sure that if you make an appointment that you keep it.
Finally, as will quickly become apparent, e-mail is by far the easiest and most reliable
method to reach me.

Contact Details:
Aisha Saleem Lecturer,
Lyallpur Business School,
Faculty of Economics & Management
Sciences
GC University, Faisalabad, Pakistan.
Office Hours Monday &Friday 8:00 to 04:00 PM

Phone(office): 041-9239330 E-mail

[email protected]
Course Specifications Developed By: Reviewed By (Dean FE &MS):
Aisha Saleem 30-12-2023
Date:25-01-2024