Peter J Wilcoxen > PPA 723 Managerial Economics

Course Outline

The list of the topics to be covered in class this semester. Where applicable, the relevant sections of Perloff are indicated by [P] and links to information on the web are indicated by [web].  The 3rd, 4th and 5th editions of Perloff use almost identical section numbers and the numbers below apply to both.  Note that this list may be revised or expanded during the semester, so it's a good idea to check back from time to time.

Demand, Supply and Markets

Core economic concepts and the basic structure and functioning of markets.
  • Demand, Willingness to Pay and Marginal Benefits [P 2.1, 9.1][web]
  • Supply and Willingness to Accept [P 2.2, 9.2][web]
  • Market Equilibrium [P 2.3]
  • Consumer Surplus [P 9.1][web]
  • Producer Surplus [P 9.2][web]
  • Pareto Efficiency [web]
  • Deadweight Loss [P 9.3]
  • Distributional and Equity Considerations
  • Taxes and Subsidies [P 3.5, 9.5][web]
  • Externalities [18.1]
  • Marginal Social Benefit [web]
  • Elasticity [P 3.2-3.5]
  • Tariffs [P 9.6]
  • Price Controls [P 9.5]
  • Quotas
  • Cross-Subsidies

Household Choice

Demand in more detail: modeling expenditure on goods and services; labor supply; choice over time; choice under uncertainty.
  • Preferences and Rationality [P 4.1]
  • Indifference Curves [P 4.1]
  • Budget Constraints [P 4.3]
  • Consumer Equilibrium [P 4.4]
  • Utility Functions [P 4.2]
  • Income Elasticity 
  • Compensating Variation [web]
  • Applying the Model to Labor Supply [P 5.5]
  • Choice Over Time [P 16.2]
  • Present Value [P 16.1][web]
  • Choice Under Uncertainty [P 17.1-17.3]
  • Expected Value [web]
  • Value of Information 

Cost Benefit Analysis

Applications of the present value and expected value calculations from Section 2 to long-term and uncertain decisions.

Producer Behavior

Production and costs; marginal and average costs and revenue; objectives and constraints of organizations, including profits, revenue and output.
  • Fixed and Variable Factors [P 6.2-6.4]
  • Isoquants [P 6.4]
  • Returns to Scale [P 6.5]
  • Average and Marginal Costs [P 7.2]
  • Fixed, Variable and Sunk Costs [P 7.2]
  • Short Run and Long Run Costs [P 7.2, 7.3]
  • Cost Minimization [P 7.3]
  • Price Taking [P 8.1]
  • Profit Maximization [P 8.2]
  • Average and Marginal Revenue [P 8.2]
  • Output Maximization [web]
  • Monopoly Behavior [P 11][web]

Competitive Markets and Market Failure

Performance of competitive markets; potential problems and market failures.
  • Competitive Supply in the Short Run [P 8.2, 8.3]
  • Entry and Exit of Firms in the Long Run [P 8.4]
  • Zero Economic Profits [P 8.5]
  • Externalities [P 18.1-18.4]
  • Rival vs Nonrival Goods [web]
  • Public Goods [P 18.6]
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Peter J Wilcoxen, The Maxwell School, Syracuse University
 Revised 11/09/2010