Program Course Syllabus BSG 502H

Urbana University MBA Healthcare Program

BSG 502H - Managerial Economics

Faculty Name: Jeff Kalbus, Ph.D.

Office Hours: Contact me by email

On-Line Course Content
Course Dates: April 6 to June 26

Phone Number: 937-772-9324

Assignments with due dates that have a set time

are listed as Eastern Standard Time (EST) zone

On-Line Course (Moodle LMS)

Urbana e-mail address:
[email protected]

The instructor reserves the right to amend, change, or deviate from the content described in the
syllabus at any time during the term as deemed necessary.
Course Description: This course is a study of economic theory and policy issues in relation to
the managerial decision-making process within health care organizations. The course introduces
different methods of analyzing and presenting economic information relevant to the development
of general strategies for management. Economic theoretical concepts will be applied to various
topics that include health care issues. Theoretical topics for discussion include demand and
supply analysis, production theory and cost analysis, an analysis of competitive strategies for
different products or services within different market structures, and game theory strategies.
Instructional Objectives
At the conclusion of the course, each student should be able to:
Knowledge

Explain the theory of production, cost theory, revenue functions, and the profit
maximization behavior for a firm.

Explain price elasticity and how the concept helps a firm to maximize total revenue.

Explain how a manager deals with both external and internal factors that may impact
corporate revenue and ultimately will determine a companys success or failure.

Develop a demand function and explain how different non-price demand factors
impact revenue.

Explain econometric procedures, regression analysis and hypothesis testing.

Explain the different methods of economic forecasting including expert opinion,

opinion polls, surveys, economic indicators, projections, and econometric models.

Discuss different market structures in which a firm might operate, such as perfect
competition, monopoly, monopolistic competition and oligopoly.

Explain the demand for factor inputs within the production function such as labor and
capital.

Skills

Use mathematical models and graphic illustrations to demonstrate economic principles

and to be able to apply economic concepts to the managerial decision-making process for
profit maximizing firms or for non-profit organizations.

Use graphic illustrations to explain changes in economic conditions.

Use calculus to develop marginal concepts of revenue and cost functions.

Use forecasting methods to predict the future outcomes of a firm and apply the principles
of economics into an application report.

Use mathematical formulas (such as elasticity) to determine the revenue level of the firm.

Develop strategies for minimizing external extemporaneous changes to the business

conditions that could hamper the objective function of management.

Use diagrams to identify output optimization and explain profit-maximizing behavior of a

profit-maximizing firm.

Behaviors

Demonstrate and maintain interest in the subject matter of managerial economics as an

effective tool for performing management functions both in the private and public sectors
and demonstrate readiness as a potential management practitioner.

Appreciate the relevance of economic theories and models to empirical situations, and
adopt them to a scientific approach when explaining economic trends and events.

Value the free competitive market system as an empirically agreed upon most efficient
method for allocating scarce resources among competing ends to achieve a firms
objective function.

Course Materials
Required Text: Keat, Paul, Phillip Young and Stephen Erfle. Managerial Economics: Economic
Tools for Todays Decision Makers. 7th Edition. ISBN: 978-0-13-302026-7; Upper Saddle River,
NJ: Pearson Prentice Hall, 2013.
Publisher website: www.prenhall.com/keat and the textbook website:
http://wps.prenhall.com/bp_keat_managerial_7/236/60596/15512753.cw/index.html
Urbana Library and Internet Resources for Application Reports and Short Papers:
The library guide (LibGuide) for the MBA Healthcare students can be accessed at the following
URL: http://urbana.libguides.com/content.php?pid=588177&sid=4848498
http://online.wsj.com/home-page (Wall Street Journal)
www.census.gov (U.S. Census Bureau)
www.federalreserve.gov (Federal Reserve)

Course Policies
Participation Policy: Active participation in the discussion questions and small team projects are
required components for this course. Not submitting a class assignment or not actively
participating in the application report assignment will impact a students grade for the course. Be
sure to follow assignment directions and submit all responses to discussion questions in a timely
manner.
Written Work
All references, citations, and formats for submitted work must follow the APA standard. All
written work should be submitted to the instructor via drop box/turn-it-in in Moodle. If for some
reason the assignment cannot be processed through the LMS, then a student can submit it to the
instructor by sending an email and attaching the assignment in a Microsoft Word format.
Written Assignment Expectations
All written assignments should be presented in a professional style and follow the basic
principles of effective written communication:

Double-spaced; 1-inch margins; 12 pt., Arial or Times New Roman font.

Well-organized according to APA standards.
Free from grammatical and typographical errors.
Demonstrates college-level critical thinking, reflection and analysis skills.
Demonstrates the ability to develop original deliverables. Students should not simply
paraphrase readings or other sources. All college-level work requires an analysis of
information, followed by an application of the information and the synthesis of the
concept or a solution to a problem.
Written work will be graded on both composition and content.

Plagiarism/Academic Dishonesty
Plagiarism will not be tolerated in this course or any other course at Urbana University. If
an assignment is found to be plagiarized work, the student will receive a score of zero for that
project. If a student cheats, he/she not only risks failing the assignment, but may also fail the
course or being expelled from the university (please refer to the Urbana student handbook).
Students are responsible for knowing and following all university polices regarding student
civility and academic conduct. Each student is expected to submit his or her own work. All
papers, examinations, and other assignments must be original or explicit acknowledgment must
be given for the use of another persons idea. Examples of plagiarism as they might occur in
term papers, research projects, group projects, or other written assignments are listed below:
1. Failure to use quotation marks: All work that is quoted directly from a source should be
enclosed in quotation marks and followed by proper reference notation. Failure to use
quotation marks, even when reference is provided, is plagiarism.
2. Failure to document ideas: When a student uses one or more ideas from and/or
paraphrases a source, he or she must appropriately reference such material.
Failure to provide an exact reference is plagiarism.
3. False documentation: Falsifying or inventing sources or a page reference is
plagiarism.
4. Submitting work completed by the student from a previous course is
plagiarism.

Discussion Questions and Participation Grade

This course develops an on-line active-learning strategy. A students level of engagement in
course activities will include such items as solving problems and on-line discussions. The
instructor has the right to award point-value for individual and group assignments. Participation
points will be given for responses to discussion questions and the feedback or comments to other
students discussion responses each week. If a student fails to provide a response to a discussion
question, he/she will not receive discussion points for that week. For each discussion question,
students will be responsible in providing their own response to the question and also providing
comments on an additional discussion response by other students.
Assignment Details
Individual Assignments: The instructor will list weekly assignments on Moodle. Class assignments
include reading the various chapters of the textbook during the week that they are assigned. Some
of the problems assigned will not be required to be submitted for a grade. These practice problems
or end of the chapter questions are designed to provide guidance for students for understanding the
material in the text and the problem sets that will be submitted for a grade. Solutions for the
practice problems/questions will be posted on Moodle on Thursday, and on the following Monday
(noon) for the problem sets that will be required to be submitted for a grade. Therefore, all problem
sets for a grade must be submitted by Sunday evening 11:55 pm to receive full credit.
Team Assignments: Team assignments will include one application report and an industry research
project. The application teams will consist of two students to a team. The industry research project
will consist of 4 to 5 students to a group.
Application Report
Two member application teams and the specific topics will be determined during the first/second
week of the course (April 6-13). Each application team will be responsible in submitting a
written application report and providing a general overview and the findings (via Power Point
presentation or other presentation package).
Application Project Due Dates: I encourage teams to submit their reports during the week the
topic is discussed (or at the very latest during the following week). For example, the price
elasticity concept will be discussed during the 3rd week of the course (April 20th). The
application report would be due on Sunday, April 26th, but no later than the end of the 4th week of
the course (April 27th). Each topic is listed in your syllabus and on the team and topic
assignment attachment (see Moodle 1st week assignments).
The application report should include: 1.) briefly discuss the operations of a company in the
healthcare industry with an economic problem or issue, 2) identify and develop an economic
model(s), and 3.) link the problem or economic condition to the company in healthcare industry
and provide a solution or identify a procedure for arriving at a solution. Application team
members must demonstrate through their discussion a good understanding of the operations and
the products/services of the chosen organization or the topic of discussion and explain how the
model and/or economic concepts are applicable to decision-making process within the
organization/topic. The key to this assignment is linking the theoretical concept to an applied
application within the health care business setting.
Each written report should be approximately four to seven pages in length. The report must be
typewritten, double-spaced, and will be graded for content, grammar, and style. A Power Point
or Prezi slide presentation of the report should also be submitted with the paper during the week

that the application report is due. A general summary of the company (1 to 3 slides) should be
provided, a summary of the economic concept/theory (1 to 3 slides) and the remainder of the
slides (2 to 4) should emphasize the application of the concept to a real world setting within
the company.
Library and Internet Resources for Industry Analysis:
The library guide (LibGuide) for the Healthcare MBA students can be accessed at the following
URL: http://urbana.libguides.com/content.php?pid=588177&sid=4848498

Encyclopedia of American Industries

Industry Annual Report
United States Industry and Trade Outlook
Standard and Poors Industry Surveys
Trade Associations
Hoovers Online: www.hoovers.com
Better Business Bureau: www.bbb.org
United States Chamber of Commerce (various regions or cities)

Method of Assessment
The class format and student assignments for each meeting are included in the bottom section the
syllabus and on Moodle. Class assignments are spread over a 12 week format and allocated to
provide sufficient time to cover the assigned materials and assignments. There will be two
quizzes during 5th and 10th week of the course (during the weeks of May 4-10 and June 8-14).
Each quiz is based on material covered in the Power Point slides, problems sets and from the
required readings. Exams will consist of short answer questions, multiple-choice questions and
problem sets. The first exam will cover Chapters 1-4, plus Chapter 5 (regression) and the second
exam will cover Chapters 6-11, plus Chapter 5 (forecasting).
Again, each student will be assigned with a partner and to application teams (two members per
team) during the first couple of weeks of the course.
Grades will be determined according to the following points:
Grading Breakdown

Percent of Grade

Discussion Questions

Discussion Questions (weeks 1, 7 and 12)

15

Writing Assignments

Article Review (week 2)

Federal Reserve/Forecasting (week 5)

10
10

Problems and Reviews

Problem Sets
SF Bread Problem

10
10

Quizzes

2 Quizzes (each quiz - 100 points)

Each quiz worth 15% of total grade

30

Small Team Report

1 Application Report
Total

Grading Scale:
A
90-100%

15
100

B
C
F

75-89%
60-74%
59 and below

A 90-100%

Student illustrates excellent performance; has unusually sharp insight into

material; initiates thoughtful questions; sees many sides of an issue;
articulates well; writes logically and clearly; integrates ideas previously
learned from this and other disciplines; and anticipates next steps in
progression of ideas.
Example: A work should be of such nature that it could be put on
reserve for all students to review and emulate. The A student is an
example for others to follow.

75-89%

Student demonstrates a solid comprehension of the subject matter and

accomplishes all course requirements; serves as an active participant and
listener; communicates orally and in writing at an acceptable level for a
graduate student.
Example: B indicates a good quality of performance and is given in
recognition for solid work; a B is considered a good grade and is
awarded to those who submit work somewhat less than exemplary.

60-74%

Student produces a quality and quantity of work in and out of class that is
below average and barely acceptable for a graduate student; has marginal
comprehension, communication skills, or initiative.
Example: C work is passing by slim margin but is unacceptable if
repetitive in nature.

Note: A late assignment will be penalized as determined by the instructor (20 percent reduction
for late assignments). All assignments must be submitted by the specified date that has been
determined by the instructor.
Managerial Economics BSG 502H - Class Schedule
Week 1: April 6 April 12
The following assignments are to be completed during the first week of class:
Individual:
Read chapters 1 and 2 in Managerial Economics: Economic Tools for Todays Decision
Makers.
Also review the on-line Chapter 1 Appendix.
Review of Mathematical Concepts Used in Managerial Economics (see site below or you
can also access the textbook site from Moodle)
http://wps.prenhall.com/bp_keat_managerial_7/236/60596/15512753.cw/index.html
Submit a response to the discussion question (by Thursday, April 9th) and respond to
one other students response (by Sunday, April 12th).
Review the following problems/questions for class discussion.

Chapter 2: Questions 4, 6 and 12

You do not have to submit the answers to the questions but please review textbook questions,
problems and the theoretical concepts when reviewing each topic.
Week 2: April 13 - 19
The following assignments are to be completed during the second week of class:
Individual:
Please forward your application team members to me, or I will assign you a partner.
Writing Assignment Article Summary
(Please read the instructions posted on Moodle) Due: April 19th 11:55 pm
Read chapter 3 including Appendix 3A in Managerial Economics: Economic Tools for
Todays Decision Makers.
If you have not read the on-line Chapter 1 Appendix, please review math concepts.
To review the Mathematical Concepts Used in Managerial Economics (see site link
below or you can also access the textbook site from Moodle)
http://wps.prenhall.com/bp_keat_managerial_5/0,10878,2398018-,00.html
Review the following problems/questions for class discussion. You do not need to submit the
problem for a grade but review questions and solve problems for a review of the topic.
Chapter 3: Questions 3 and 12; Problem 2
Application Team Project (Supply and Demand):
Submit and present application reports that are based on theory/models and concepts for
the content in Chapters 3 (supply/demand).

Week 3: April 20 - 26
The following assignments are to be completed during the third week of class. Please submit
typewritten answers/response when required to submit an assignment.
Read chapters 4 and Appendix 4 A in Managerial Economics: Economic Tools for Todays
Decision Makers.
Individual:
Income/Price Elasticity Problem
(see Moodle for the 3 problems that will be required to be submitted for a grade)
Homework Assignment Due: April 26th 11:55 pm
Review the following questions for review (do not need to submit for a grade)
Chapter 4: Questions 3 and 5.
Application Team Project (Elasticity):
Submit and present application reports that are based on theory/models and concepts for
the content in Chapters 3 (supply/demand if needed) and 4 (elasticity).

Week 4: April 27 May 3

The following assignments are to be completed during the fourth week of class:
Read Chapter 5 (Regression) in Managerial Economics: Economic Tools for Todays Decision
Makers.
Individual:
Review the following problems/questions (not required to be submitted for a grade):
Chapter 5: Questions 2, 3 and 4 (Demand Estimation); Questions 4
SF Bread Company Assignment:
Review and answer the questions for the San Francisco Bread Company
(Due Date: May 3rd 11:55 pm).
Application Team Project (Regression and Macroeconomics):
Submit and present application reports that are based on theory/models and concepts in
the first portion of Chapter 5 (regression) and the concept of Macro Economics.

Week 5: May 4 10
Review Chapters 1-5 in Managerial Economics: Economic Tools for Todays Decision Makers.
Review regression questions/solutions for the SF Bread Company to prepare for the quiz
Quiz will be posted on May 4th in Moodle. You will only get one chance to take the quiz.
Quiz 1 (Chapters 1-5 -- Chapter 5 includes regression does not include forecasting)
You are required to complete the quiz by May 10th for credit (11:55 pm)

Week 6: May 11 - 17
The following assignments are to be completed during the fifth week of class:
Read Chapter 5 (Forecasting) in Managerial Economics: Economic Tools for Todays Decision
Makers.
Individual:
Writing Assignment Federal Reserve Beige Book Summary or Forecasting Paper
(Please read the instructions posted on Moodle) Due: May 17th 11:55 pm
Application Team Project (Forecasting):
Submit and present application reports that are based on theory/models and concepts in
the first portion of Chapter 5 (forecasting).

Week 7: May 18 - 24
The following assignments are to be completed during the seventh week of class:
Read Chapter 6 and Appendix 6 in Managerial Economics: Economic Tools for Todays
Decision Makers.
Individual:
Review the following problems/questions (not required for a grade):
Chapter 6: Questions 6 and 7; Problem 2
Submit a response to the discussion question (by Thursday, May 21st) and respond to
one other students response (by Sunday, May 31th).
Application Team Project (Production Theory):
Submit and present application report that is based on models and concepts in Chapter 6
(Production Theory).

Week 8: May 25 - 31
The following assignments are to be completed during the eighth week of class:
Read Chapter 7 in Managerial Economics: Economic Tools for Todays Decision Makers.
Individual:
Problem Set (see Moodle assignment for a grade) Due: May 31st 11:55 pm
Review the following problems/questions (not required for a grade):
Chapter 7: Questions 6, 8 and 9; Problem 10
Application Team Project (Cost Theory):
Submit and present application report that is based on models and concepts in Chapter 7
(Cost Theory).
Week 9: June 1 7
The following assignments are to be completed during the 9th week of class:
Read Chapters 8 and 9 in Managerial Economics: Economic Tools for Todays Decision
Makers.
Individual:
Problem Set (see Moodle assignment for a grade) Perfect Competition and Monopoly
Due: June 7th 11:55 pm
Application Team Project (Perfect Competition, Monopoly and Monopolistic Competition):

Submit and present application report that is based on models and/or concepts in
Chapters 8 (Perfect Competition and Monopoly) and Chapter 9 (Monopolistic
Competition and Oligopoly).
Week 10: June 8 14
The following assignments are to be completed during the 10th week of class:
Review Chapters 6-9 in Managerial Economics: Economic Tools for Todays Decision Makers.
Individual:
Submit a response to the discussion question (by Thursday, September 11th). You are
not required to respond to another students response.
Quiz will be posted on June 8th in Moodle. You will only get one chance to take the quiz.
Quiz 2 (Chapters 6-9 plus Chapter 5 forecasting only) Quiz due: June 14th (11:55 pm)
You are required to complete the quiz by June 14th for credit (11:55 pm)
Week 11: June 15 21
The following assignments are to be completed during the 11th week of class:
Read Chapters 10 and 11 in Managerial Economics: Economic Tools for Todays Decision
Makers.
Individual:
Problem Set (see Moodle assignment for a grade) Due: June 21st 11:55 pm
Review the following problems/questions (not required for a grade):
Chapter 10: Question 12; Problem 1
Chapter 11: Questions 2 and 4
Application Team Project (Oligopoly, Special Pricing Models and Game Theory):
Submit and present application report that is based on model and/or concepts in Chapters
9 - 11.

Week 12: June 22 26

All assignments must be completed before the end of the 12th week of class (June 26th).
Individual:
Submit a response to the discussion question (by Thursday, June 26th). You are not
required to respond to another students response.

BGS-502H - Managerial Economics

Instructor: Jeff Kalbus, Ph.D.
Phone: (937) 484-1268 (Work)
E-mail address: [email protected]
Education:
BA - Hiram College (Major: Economics)
MA Bowling Green State University (Major: Economics)
Ph.D. The Ohio State University (Major: Agricultural Economics - Finance)
College Teaching Experience:
I have taught a variety of economics theory and calculus classes at Cal Poly State University
San Luis Obispo California, algebra and economic theory classes at Ohio University Ironton
Ohio and economic theory classes at The Ohio State University Columbus Ohio. I have also
taught Managerial Economics classes at Ohio Dominican University and Otterbein College in
their MBA Programs. I am currently the Dean of the College of Business and an Assistant
Professor at Urbana University.
Work Experience:
I was employed with the Ohio Department of Agriculture (26 years) and have been an Assistant
Professor at Urbana University (since January 2013). My job responsibilities at ODA included
managing the departments federal grant portfolio (34 grants/$16 million), developing
departmental and divisional budgets and providing regulatory oversight for 94 county and
independent agricultural societies throughout Ohio. Prior to my employment at ODA, I was an
Assistant Professor at Cal Poly State University San Luis Obispo California. During 2007-09 I
was on special assignment with the OAKS project as a departmental liaison and software trainer
for the budget module (State of Ohio implemented a new software accounting/database system).
Teaching Philosophy for the Managerial Economics Class:
As the instructor it is my responsibility to develop a basic theoretical foundation of the economic
principles and combine this knowledge with different methodologies to provide solutions to real
world problems and to address situational business settings. It is the instructors responsibility
to motivate the student to create a learning environment that aids in the students learning
process.