Course Outline

ECON 315 : Managerial Economics

Preview Workflow

Viewing: ECON 315-WW : Managerial Economics

Last approved: Mon, 11 Jan 2016 19:36:21 GMT

Last edit: Mon, 11 Jan 2016 19:36:20 GMT

College of Arts & Sciences (WARSC)
Managerial Economics
This course presents an analytical approach to the manager's role in understanding pricing, costing, production and forecasting. This course emphasizes the quantitative and qualitative applications of economic principles to business analysis. Aviation related topics commonly discussed include airport privatization and employee ownership of airlines, forecasting passenger demand, airline production and cost analysis, optimal pricing and production decisions, sensitivity analysis, and capital budgeting.

This course is designed to give the student an appreciation for simple analytical models which explain the actions of the firm under different market conditions, the techniques available to managers to quantify and estimate parameters necessary to efficient management. Professors will utilize current aviation examples to illustrate these economic principles as frequently as possible, in order to maintain student interest.

Upon completion of the course, students will be able to:

1. Utilize supply and demand analysis to illustrate the workings of the economy and make basic predictions of how events will affect prices.

2. Explain methods for estimating demand and cost.

3. Explain the basic role of the firm in reducing transaction costs.

4. Calculate present values and utilize decision tree analysis.

5. Apply incremental cost versus benefit analysis to business decisions with supporting examples within the airline and airport industries.

6. Apply incremental cost versus benefit analysis to business decisions with supporting examples within the airline and airport industries.

7. Explain the basics of quantitative techniques such as linear programming and regression analysis.

8. Explain the traditional static models of perfect competition, monopoly, oligopoly, and monopolistic competition, as well as the modern model of market contestability with applications to the air transportation industry.

9. Explain optimal pricing strategy in theory and the practical application of "rules of thumb" in the real world of uncertainty.

10. Discuss the capital budgeting decision with exemplifying applications to the air transport industry.

11. Explain the main role of governments in the economy and discuss basic principles of market failure and public choice in the air transport industry.

Located on the Daytona Beach Campus, the Jack R. Hunt Library is the primary library for all students of the Worldwide Campus. The Chief Academic Officer strongly recommends that every faculty member, where appropriate, require all students in his or her classes to access the Hunt Library or a comparable college-level local library for research. The results of this research can be used for class projects such as research papers, group discussion, or individual presentations. Students should feel comfortable with using the resources of the library. 

Web & Chat:
Text: (386) 968-8843
Library Phone:  (386) 226-7656 or (800) 678-9428

a. Reference publications/supplemental readings: Wall Street Journal, major newspaper business sections, any handouts on topics presenter. b.. Audio visual materials: None. c.. Special equipment: None. d. Nine interactive modules covering the chapters of the Hirschey text are available by request from Worldwide Online. You will find links to various exercises, websites, resources, as well as discussion questions and exercises that can be done in class or online between classes. Instructors should request the Online content be provided to their on ground Blackboard course at their local ERAU campus and adapt the content to their course. After editing the content to serve the purposes of the on ground course, the on ground course can be archived and used the next time the course is taught in the classroom at a campus.

Written assignments must be formatted in accordance with the current edition of the Publication Manual of the American Psychological Association (APA) unless otherwise instructed in individual assignments.

ActivityPercent of Grade
Input Grading Item100

Undergraduate Grade Scale

90 - 100% A
80 - 89% B
70 - 79% C
60 - 69% D
0 - 60% F

Graduate Grade Scale

90 - 100% A
80 - 89% B
70 - 79% C
0 - 69% F
Written and oral communications, aviation applications of subject matter, and computer skills are emphasized in each course offered throughout the Worldwide Campus.
Kelly Whealan George - 3/25/2015
Kelly Whealan George - 3/25/2015
Alan Bender - 3/25/2015
Dr. James Schultz – 3/25/2015
1-14 General Education of Arts and Sciences PO1 - Apply knowledge of college level mathematics to defining and solving problems;
PO2 - Apply statistical methods in the analysis and interpretation of data for the purpose of drawing valid conclusions relating to the solutions of problems;
PO3 - Communicate ideas in written form in both technical and non-technical areas;
PO4 - Communicate ideas in non-written form, such as through oral presentations or visual media;
PO5 - Recognize the importance of professional, ethical and social responsibility;
PO6 - Understand the natural world, to include the impact of the environment on aerospace operations and aerospace operations on the environment, as well as everyday life and professional experiences;
PO7 - Use digitally-enabled technology to organize and manipulate data, perform calculations, aid in solving problems, and communicate solutions, ideas, and concepts;
PO8 - Use scientific information in critical thinking and decision-making processes;
PO9 - Function on multi-cultural and/or multi-disciplinary teams;
PO10 - Apply economic principles to identify, formulate, and solve problems within professional and personal environments;
PO11 - Identify and participate in professional and personal development activities through organizations and self-directed learning;
PO12 - Understand contemporary issues in society
PO13 - Recognize the complexity and diversity of the human experience, including cultural, aesthetic, psychological, philosophical, and spiritual dimensions;
PO14 - Conduct and report research in accordance with professional standards.
Key: 86