I. Prelude:
Micro Economics course provides a unifying theme of managerial decision – making around the theory of the firm. It analyses how managerial decisions are actually made in real world. The course deals with an application of micro- economics principles to business decision making. It examines the factors underlying demand and supply, behaviour of firms under various market structures and the role of price system in the economy. This course is designed to introduce the potential business managers to the subject matter of economics, wherein various economic theories and quantitative methods can be applied to business decisions such as pricing, production, profit maximisation and so on.
II. Course Objectives:
Ø To provide the participants a conceptual framework for effective decision-making.
Ø To inculcate the analytical skills, thereby enhance the ability to solve economic problems faced by the firms.
Ø To provide practical insights by means of real-life examples, case studies and exercises in order to facilitate an understanding of nuances involved with respect to the applicability of micro-economic theories in reality.
III. Course Contents:
| Sl. No. | Topics | Suggested Readings (Authors’ Names) | No. of Sessions |
1. | Introduction to Economics | o Michael Veseth
o Heyne and Johnson
o Galbraith and Salinger
o Mantell and Singh
o Edwin Mansfield | 1 |
2. | Demand Analysis and Estimation
· Determinants of Demand
· Law of Demand
· Elasticities of Demand
· Demand Estimation | o E.J. Douglas
o Dominic Salvatore
o Davis and Chang
o Peppers and Bails
o Joel Dean
o Dominic Salvatore
o Edwin Mansfield
o Byrns and Stone | 5 |
3. | Production Analysis and Estimation
· Laws of Returns
· Laws of Returns to Scale | o Samuelson & Nordhaus
o Donald Watson
o E.J. Douglas
o Davis and Chang
o Kuotsoyiannis
o Peppers and Bails | 2 |
4. | Cost Analysis and Estimation
· Short run cost Functions
· Long run cost Functions
· Economies and Diseconomies of Scale | o Michael Veseth
o Frank Livesey
o Andrew Dunnet
o Donald Watson
o E.J. Douglas
o Davis and Chang
o Dominic Salvatore
o K.K. Seo | 2 |
5. | Break-even Analysis | o E.J. Douglas
o Peppers and Bails
o Davis and Chang
o Dominic Salvatore | 1 |
6. | Profit Maximisation and Pricing Strategies in Different Market Structures
· Perfect Competition
· Monopoly
· Monopolistic Competition
· Oligopoly | o Samuelson & Nordhaus
o Baumol and Blinder
o E.J. Douglas
o Davis and Chang
o Dominic Salvatore
o Donald Watson | 3 |
IV. Additional References:
The following book is being given to each of you, for basic reference:
“MANAGERIAL ECONOMICS" 7th Edition, Adapted Version, DOMINICK SALVATORE & RAVIKESH SRIVASTAVA, Oxford University Press. This book is prescribed for only preliminary reading, and by no means be adequate to fulfill the learning objectives of this course. For further reading, solving practical questions and problems, additional references are cited above.
V. Evaluation: (50% for Part – B)
Sl. No. | Components of Evaluation | Weights |
1 | Quizzes (Part – A) | 10% |
2 | Mid-term Examination (Part – A) | 15% |
3 | End term Examination | 25% |
VI. Academic Integrity
Enforcement of discipline and code of conduct shall be in accordance with the Manual of Polices of the Institute.