BECO 4310 Applied Business Economics

Syllabus
2017 Spring
Instructor
Email
Phone
Office hours
Office
Class

Michael Giberson
michael.giberson@ttu.edu
(806) 834-3161
MWF 12:30-1:50 PM and by appointment.
BA NW 317
BECO 4310-005
MWF 10:00-10:50 AM BA NW 210
BECO 4310-008
MWF 11:00-11:50 AM BA NW 210
BECO 4310-011
MWF 2:00-2:50 PM
BA NW 210

Welcome
This course has three overlapping goals which I invite you to adopt. First, to use economic concepts to
improve our understanding of business decision making. Second, as a complementary objective, to
strengthen our understanding of basic economic principles, both through direct study of economic
theory and through application of theory to cases. And third, to develop an appreciation of the role of
business and markets in our economic system so as to better understand the broader context of
business decision making.

Course materials
Required course materials are Daniel Marburger and Ryan Peterson, Economic Decision Making Using
Cost Data (Business Experts Press, 2013), Arnold Kling, Specialization and Trade (Cato Institute, 2016),
and a coursepack of business cases from Harvard Business Publishing. Additional required readings
and other required content will be posted or linked to on Blackboard. Recommended and supplemental
materials will be available on Blackboard as well.
The Marburger and Peterson book should be in the campus bookstore and elsewhere. It is also available
in paper or in electronic format from the publisher website and other sources. A link to Amazon is
included for your convenience, but you may secure the text from any source.
Link to publishers page: http://ebooks.businessexpertpress.com/Books/9781606495131;
Amazon: http://www.amazon.com/Economic-Decision-Making-Using-Costebook/dp/B00EA2PGN0/.
The Kling book is free in electronic form at the link below and can also be purchased in electronic or
paperback formats from multiple sources online.
Free pdf here: https://cdn.cato.org/libertarianismdotorg/books/Specialization_and_Trade.pdf
Amazon: https://www.amazon.com/Specialization-Trade-Re-introduction-Arnold-Klingebook/dp/B01GW3SOOM

BECO 4310 with Giberson / Syllabus / Page 2

The Harvard Business Publishing coursepack for this class must be obtained from the HBP website at the
link below. The coursepack will be available beginning January 10, 2017.
Coursepack link: http://cb.hbsp.harvard.edu/cbmp/access/58338014
I strongly recommend you re-read relevant parts of your principles of economics textbook as we work
through the semester. If you did not keep your principles textbook or you would like an alternative, I
recommend The Economic Way of Thinking by Heyne, Boettke, and Prychitko. Old editions are entirely
suitable and can be found online for under $10. (LINK) Meet with me if you would like help in locating
relevant material in your principles of economics book.

Expected Learning Outcomes

After completing this course, students are expected to be able to:

Explain the similarities and differences between opportunity costs and accounting costs and the
connections between economic profit and accounting profit;
Explain how managers estimate demand and supply relationships and apply those estimates in
common business contexts;
Determine profit maximizing decisions of firms in various market structure including: perfect
competition, monopoly, and oligopoly;
Explain the reasons for the emergence of the firm, the factors that limit the size of the firm, and
how principal-agent problems affects firm performance; and,
Use spreadsheets to explore and analyze practical business issues.

Methods of Assessing Outcomes

Case memo assignments Each student will be required to submit five case memo assignments. The
case memos provide an opportunity for you to integrate and apply analytical tools and concepts in a
practical problem setting. Case memo deadlines are available in Blackboard. Plan ahead to make the
best use of your flexibility.
Class participation A number of classes involve in-class activities. Such activities will range from pop
quizzes to small-group discussions to economic simulations to whatever else happens. You must be
present, participate in the activity, ensure your name is on the appropriate record sheet, and ensure the
record sheet is turned in to obtain credit for participation.
In addition, nearly every class will involve opportunities for discussion of class material. Your
contributions to class discussions may boost the class participation segment of your course grade.
Midterm exams During the semester two mid-term examinations will test your understanding of
theoretical concepts and their business applications.
Standardized post-course assessment All BECO 4310 students take a standardized exam testing your
understanding of core economics concepts. The standardized post-course assessment is offered near
the end of the term.
Final exam The final exam will be cumulative, but with some additional emphasis on materials covered
after the second midterm exam.

BECO 4310 with Giberson / Syllabus / Page 3

Grading
This course has a total of 595 points available, allocated as letter grades in the following manner:

A (Excellent) .............................. more than 535 points

B (Good) ......................... from 475 through 534 points
C (Average)..................... from 415 through 474 points
D (Inferior)...................... from 355 through 414 points
F (Failure) ................................... fewer than 355 points

The overall score will be rounded up to the nearest whole number for purposes of assigning a letter grade.
Points toward your overall score are available as follows:

Case memo assignments ..................... 20 points each

Class participation ......................................... 95 points
First midterm .............................................. 110 points
Second midterm .......................................... 110 points
Std. post-course Assessment ......................... 60 points
Final exam ................................................... 120 points

Academic Integrity and Dishonesty

As stated in the TTU Catalog, it is the aim of the faculty of Texas Tech University to foster a spirit of
complete honesty and a high standard of integrity. The attempt of students to present as their own any
work that they have not honestly performed is regarded by the faculty and administration as a serious
offense and renders the offenders liable to serious consequences, possibly suspension. For more
information see Operating Procedure 34. 12.

Late Assignments, Automatic Extensions, Missed Exams, Extra Credit Opportunities

All homework assignments must be turned in on time through Blackboard. Due dates will be clearly
indicated with the assignments in Blackboard. Assignments will not be accepted late except (1) the student
requests an automatic extension as described below, or (2) under other exceptional circumstances as
guided by university policies.
In the event a computer failure, Blackboard service interruption, or other circumstance prevents timely
submission of a case memo, you may obtain an extension by submitting a request prior to the due date and
time with a message that: (1) includes your name, (2) identifies the course number including section, and (3)
describes the assignment for which you seek an extension. Extensions properly submitted automatically
shifts your due date to the start time of class during which we discuss the case and are penalized two points.
In no case can you gain credit for a case memo turned in after the in-class discussion of the case. I anticipate
that students will employ this policy no more than once or twice in the semester; abuse of the policy may
result in the loss of the exemption and a zero grade on the late assignment. Submit your extension request
via Blackboard message if possible, else by email, and finally if neither of those options is available to you via
voicemail left on my office phone.
You cannot make-up or substitute for exams or in-class activities missed except for exams and quizzes
missed due to university-sponsored trips or observance of religious holy days in cases in which the

BECO 4310 with Giberson / Syllabus / Page 4

instructor is notified by email in advance. Rare exceptions will be made for serious illnesses and other
circumstances on a case-by-case basis.
Extra credit opportunities may be provided to the class for attendance at outside lectures or for other classrelated readings and special events. No individualized extra credit assignments will be offered.

Disability Accommodation (Operating Procedure 34.22)

Any student who, because of a disability, may require special arrangements in order to meet the course
requirements should contact the instructor as soon as possible to make any necessary arrangements.
Students should present appropriate verification from Student Disability Services during the instructors
office hours.
Please note instructors are not allowed to provide classroom accommodations to a student until
appropriate verification from Student Disability Services has been provided. For additional information,
please contact Student Disability Services in West Hall or call 806-742-2405.

Attendance, Illness, University-Approved Trips and Religious Holy Day Observances

In general I assume that you, as an adult, are responsible for how you choose to use your time. I expect
you attend class and automatically assume that if you choose not to be in class it is for good reason.
When you miss class for any reason, it is your responsibility to catch up or cover missing materials or
assignments. The class site in Blackboard and your fellow students should be your first recourse in such
cases, not your instructor.
You do not need to present me with doctors notes when you miss class due to an illness. I already
assume you only miss class for a good reason. However, please do contact me if an illness will keep you
from attending multiple classes or causes you to miss an exam.
In-class activities missed cannot be made up. In the case of a missed exam, a student who will miss class
due to a university-approved trip or to observe a religious holy day should make that intention known to
the instructor by message posted in Blackboard prior to the absence so that accommodations can be
made in accordance with university policies.

Course Communication
Outside of class or office-hour visits, students should communicate with the instructor about the course
via the messaging system within Blackboard. During the semester I will check Blackboard at least once a
day, Monday through Friday, and probably more frequently during the week and on weekends. It is my
intention to respond to messages, if needed, within 24 hours during the week. Do not address courserelated issues via email or phone calls expect in exceptional circumstances.
Course announcements, assignments, supplemental readings, and any changes to this syllabus will be
discussed in class and, as relevant, posted on the Announcements page or other location within the class
site on Blackboard. In general, assignment dates posted in Blackboard are authoritative.

Blackboard resources
Student support for Blackboard and related issues is available online at
http://www.tlpd.ttu.edu/content/asp/blackboard/StudentSupport.asp. In the event that the Blackboard
system is unavailable to you at a time an assignment is due, you should request an automatic extension
using the processes described above.

BECO 4310: Applied Business Economics

Course outline
2017 Spring
The course assignments are organized into modules on the TTU Blackboard system. The outline and
schedule notes below are preliminary and may be changed as needed during the semester. Rely on
assignment information and test dates as reflected in Blackboard.

Module 1 Introductions and fundamentals

Introduction; The hockey stick of human progress

Economic foundations
On prices and costs
Advance look: Freemark Abbey Winery
Freemark Abbey Winery case memo assignment due
Case discussion: Freemark Abbey Winery

20-Jan
23-Jan
25-Jan
27-Jan
29-Jan
30-Jan

Module 2 Costs and decisions

Accounting and economics on revenues and costs

Price takers and price makers
Relevant revenues and costs
Advance look: Old Mule Farms case
Old Mule Farms case memo assignment due
Case discussion: Old Mule Farms

1-Feb
3-Feb
6-Feb
8-Feb
9-Feb
10-Feb

Module 3 Consumers and demand analysis

Consumer theory, utility

Demand and revenue
Substitutes and complements
Price discrimination
Advance look: George's T-shirt case
George's T-shirt case memo assignment due
Case discussion: George's T-shirt

Midterm Exam 1

13-Feb
15-Feb
17-Feb
20-Feb
22-Feb
23-Feb
24-Feb
27-Feb

Module 4 Cost theory, production, supply analysis

Production theory basics

Cost theory basics

1-Mar
3-Mar

BECO 4310 with Giberson / Syllabus / Page 6

Profit maximization, Perfect competition, monopoly

Economies of scale
Advance look: Catawba case
Catawba case memo assignment due
Case discussion: Catawba

6-Mar
8-Mar
10-Mar
19-Mar
20-Mar

Module 5 Cost theory applied

Overhead costs and product costs

Taxing externalities
Overhead and externalities in public policy
Variable and absorption costing
Advance look: Superior Mfg case
Superior Mfg case memo assignment due
Case discussion: Superior Mfg

22-Mar
24-Mar
27-Mar
29-Mar
31-Mar
2-Apr
3-Apr
5-Apr

Midterm Exam 2
Module 6 Strategic analysis using game theory

Introducing game theory

Using game theory
Advance look: Pricing Games case
Pricing Games case memo assignment due
Case discussion: Pricing Games

7-Apr
10-Apr
12-Apr
13-Apr
14-Apr

Module 7 Economic models

Demand analysis, price discrimination, elasticity

Supply analysis, cost theory, elasticity of supply
Market models - Perfect competition vs Monopoly
Price caps and price floors

19-Apr
21-Apr
24-Apr
26-Apr

Module 8 Optimization using Excel

28-Apr

An introduction to optimization

Post-Course Assessment*

1-May*

Advance look: Merton Trucks case

Merton Trucks case memo assignment due
Case discussion: Merton Trucks
Wrap-up

3-May
4-May
5-May
8-May

Final Exam

Section 5 (10 AM class)

Section 8 (11 AM class)
Section 11 (2 PM class)

10:30 AM - 1:00 PM
1:30 PM - 4:00 PM
1:30 PM - 4:00 PM

13-May
15-May
12-May

*Course wide assessment to be conducted in the BA testing center on or about May 1, but it has
not yet been scheduled as of the time this syllabus was prepared. Date will be announced well in
advance.