Course objectives

       Students of managerial economics will formulate and solve

    constrained-optimization problems for making profitable and

  effective business decisions, and anticipate changes in such problems.  Students develop the following three abilities:

1. Formulate and solve constrained optimization problems

C and D Level: Formulates and solves simple problems correctly, but makes errors with complex problems.

A and B Level: Makes few mistakes, even for complex problems.

Assessment Method:  Exams contain some simple and other complex problems.

2. Question reasonableness of solutions, verify solutions, and justify solutions.

C and D Level: Often submits solutions that are unreasonable in view of the parameters and given information of the problem.  Seldom verifies solutions for correctness.  Incomplete explanation of how solutions were reached.

A and B Level: Seldom submits solutions that are unreasonable in view of the parameters and given information of the problem.  Often verifies solutions for correctness.  Complete explanation of how solutions were reached.

Assessment Method:  Full points require explanations of how solutions were reached, and deductions are made for unreasonable explanations.

3. Correctly use quantitative analysis in varied contexts.

C and D Level: Is not able to use managerial economics in contexts different from the ones in which the methods were first learned.

A and B Level: Is able to use managerial economics in varied contexts, including  adapting techniques for making firms more profitable to making charities more effective.

Assessment Method:  Exams contain some problems like those discussed in class or in the homework and other problems that are variations of those problems or variations of supplemental problems that are provided but not made part of the homework.  And an application paper requires adapting techniques for making firms more profitable to making charities more effective.

Course grade

Course grading is designed to be a clear and consistent assessment of how well you met the course objectives.  Specifically, there are 5 components of your course grade. 

· First Midterm Exam, worth   25% of your course grade.

· Second Midterm Exam, worth 25%.          

· Final Exam (cumulative), worth 40%.       

· Homework, worth 5%.  I will drop the single lowest Homework.

· Original Application Paper, worth 5%.

Each component is graded and recorded according to the standard 4-point numerical scale:

· A = 4; A- = 3.7; B+ = 3.3; B = 3.0; B- = 2.7; C+ = 2.3; C = 2.0; C- = 1.7; D+ = 1.3; D = 1.0; F = 0

Grading individual questions and curving

Each individual question on an exam or on a homework is graded on this 4-point scale:

4 points if all is correct --- or there is only a small error.

3 points for missing or doing wrong part of a problem, but the rest is correct.

2 points for a reasonable attempt.

1 point if there is at least something of value in the attempt.

For homework sets, your score is the average score of the individual problems. — There is no curve.

For exams, an average score is computed, but curving points may be added (at my discretion) so that the results fit the standard 4-point numerical scale.

Application paper

Most of our textbook and PowerPoint applications focus on minimizing cost to help businesses maximize profit (revenue minus cost).  You are to adapt one of those applications to show how a real non-profit business (like a charity) can minimize cost.  The application paper is at most 3 pages, and is worth 5% of your course grade, and is due on the date of Exam 2.  If you do not earn an A on your paper and if you turn it in at least 1 week early, I will tell you what is lacking and let you revise it.  Follow the Applications link for suggested topics.

Class participation

Class participation is required.  Your course grade will suffer up to 5% if you miss too many classes.  If you miss more than 4 classes (or come more than 5 minutes late), then your course grade is reduced .5% for each additional class missed. This is called a class-participation grade since I will make sure that all those attending class will participate in some class discussion.

Excused and unexcused absences

Pepperdine University defines the following excused absences:

· Participation in an official University activity — athletics, debate, …  But in those cases, you must tell me at the beginning of the semester.

· Death or major illness in a student's immediate family (parent, sibling, wife, child, or grandparent)

· Participation in legal proceedings that require a student's presence.

· Religious holy day.

· Confinement because of illness (doctor’s note required).

· Required participation in military duties.

· If the University closes that day.

In contrast, the following are not excusable:

· Overslept, car broken, car stolen, parking or traffic problems; shuttle delays (barring natural disasters)

· Care giving for individuals outside of immediate family (boyfriend, girlfriend, roommate, etc.)

· Vague, undiagnosed illness.

· Job interviews.

· Site visits to graduate schools or potential employers.

Consequences of missed work

· There are no make-up midterms for excused absences.  Rather, I will put zero course-grade weight on that midterm, and will evenly shift the weight to the other 5 grade components. 

· You get a zero (F) if, without excuse, you do not arrive within 10 minutes of the start of any exam.

· No late homework is accepted.  (Remember, I’ll distribute my answers soon after the due date.)

· Late application papers earn only half credit.

Midterm grace

If it improves your course grade, I will shift all the weight from any single one of the two midterms onto the final exam weight.