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2014/2015  BA-BSEMO1004U  Managerial Economics I

English Title
Managerial Economics I

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Course period Spring, Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in Service Management
Course coordinator
  • Mikkel Godt Gregersen - Department of Operations Management (OM)
    Eric Bentzen - Department of Operations Management (OM)
Main academic disciplines
  • Economics, macro economics and managerial economics
Last updated on 15-08-2014
Learning objectives
To be awarded the highest mark (12), the student, with no or just a few insignificant shortcomings, must fulfill the following learning objectives:
  • The student should be able to account for selected theories
  • The student should be able to apply the correct theory on a given issue.
  • The student should be able to apply technical solution methods when solving a given issue.
  • The student should be able to illustrate the solution to a given issue.
  • The student should be able to use the correct course vocabulary.
  • The student should be able to reach a decision based on economic rationing.
Course prerequisites
Students not enrolled in BSc in Business Administration & Service Management must document a level in English equal to TOEFL 575, and A level in mathematics equal to Danish level B
Managerial Economics I:
Exam ECTS 7,5
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period Spring Term
Aids allowed to bring to the exam Limited aids, see the list below and the exam plan/guidelines for further information:
  • Allowed calculators
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Course content and structure

The objective of this course is to provide the student with a thorough understanding of microeconomics applied to the problem of managerial decision-making. The first step in achieving this objective is to understand how to model economic behaviour. The student will learn how a manager chooses production inputs based on marginal productivity, prices, and various other economic variables. The student will learn to develop an economic model through the use of algebra and basic calculus. The student will gain a feel for the art of choosing assumptions to set up and solve a meaningful problem. The second step in achieving the objective is to build an understanding of the many economic problems. The student will examine economic problems in consumer theory, production, technology, cost analysis, profit analysis, and market interactions.
10 x Lecturing (L1-L10)
The course consists of 10 lectures (L1-L10) each of 3 x 45 minutes. The lectures will explore the core areas of the theory requiring a considerable amount of self-study. It is advisable with 4-6 hours of preparation for each lecture.

4x Active workshops (W1- W4) + 2x Economic Math workshops + 1x Economic Excel workshop
Each workshop is 6 lectures of each 45 min. The workshops consist of cases in theoretical and empirical problems and are part of the curriculum. Naturally these active learning sessions will correspond to the content and headlines of the previous lectures. The workshops are very important for the learning process. All students have to answer and submit online 3 workshop-papers. The workshops can be solved individually or in groups but the online questions must be answered individually.

Teaching methods
Lectures, workshops and exercises
Student workload
Classes 30 hours
Workshop/ Exercises 42 hours
Preparation for class 115 hours
Home assignments 16 hours
Examination 4 hours
Expected literature
  • Paul Keat, Philip Young and Stephen Erfle: Managerial Economics – Economic Tools for Today’s Decision Makers, 7 th  edition, Pearson, 2013 
  • ME: Mark Hirschey & Eric Bentzen
    Managerial Economics, 13th edition, Cengage, 2014.
  • Micro: Pindyck/Rubinfeld: Microeconomics, 6th edition, Pearson Education, 2003: pp: 32-185 (Ch. 2.4-5), (Available on LEARN in pdf format)
  • Math: Ian Jacques, Mathematics for Economics and Business, 7 th edition, Pearson Education, 2012: Ch. 1-4. (Exercises in “MyMathLab Global”)  

Please note, minor changes may occur. The teacher will upload the final reading list to LEARN two weeks before the course starts.

Last updated on 15-08-2014