MEM-EMBA-20

MEM-EMBA-20
MBA(Exe.) 2020-21: Term-I

MICROECONOMICS FOR MANAGERS (MEM)

Credits	Three
Faculty Name	Biresh Sahoo
Program	Executive MBA
Academic Year and Term	2020-21 and Term I

1. Course description

The course deals with an application of core microeconomics principles to business decision making. It examines the factors underlying demand and supply, behavior 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 maximization and so on. More specifically, the course intends not only to provide the students the conceptual framework for optimal decision-making but also to improve the analytical skills, quality of decision-making and the ability to solve economic problems faced by the individual households and firms.

An introduction to the four core principles of Economics (Benefit-cost principle, Opportunity cost principle, Marginal principle and Interdependence principle) for decision making by individuals (households and firms); demand analysis (Thinking Like a Buyer); supply analysis (Thinking like a Seller); production technology as a tool for benchmarking; understanding, analyzing markets and predicting markets; market structures and market power; entry, exit and long-run profitability; and business strategy.

2. Learning objectives
· Learn how the four core principles of Economics for decision making by individuals consumers and producers.
· Understand how consumers and producers make buying and selling decisions respectively. Analyze how supply and demand determine the equilibrium price and quantity; and understand how demand and supply respond to changing market conditions and forecast the consequences of government policies.
· Learn how the concept of production technology (production function, isoquant and production possibility frontier) to perform ‘benchmarking’ of decision-making units by evaluating their products, processes, or functions against the industry best practice. Learn how to arrive at weights for various performance metrics to reveal the best-practice companies’ strategies for their successful performance.
· Learn how businesses set prices to remain profitable when they have market power. Learn how companies identify opportunities to determine their long-run profitability.

3. Required text and reference books, teaching materials
· Text book

Stevenson, B. and Wolfers, J.

Principles of Microeconomics

, London: Macmillan (First Edition, 2020).

· Reference Books
· Varian, H.R., Intermediate Microeconomics: A Modern Approach, New York: W. W. Norton & Company.
· McEachern, William A. and Kaur, S. MICRO ECON, New Delhi: Cengage Learning.
· Baye, M.R. and Prince, J.T., Managerial Economics and Business Strategy, New Delhi: McGraw Hill Education (India) Pvt. Ltd.
· Frank, R.H., Microeconomics and Behavior, New York: McGraw-Hill Publishing Company.
· Salvatore, D. and Srivastav, R., Managerial Economics: Principles and Worldwide Applications, New Delhi: Oxford University Press.
· Teaching notes (will be supplied after every lecture)

4. Tentative session plan

Session No. Topics/Activities Reading / case list

1.
The core principles of economics for decision making by individual consumer and producer

Chapter 1

2.

3.
Demand: Thinking like a buyer Chapter 2

4.
Testing the rationality principle for individual decision using the law of demand with applications Teaching notes

5.

6.

7.
Supply: Thinking like a seller Chapter 3

8.
Market equilibrium Chapter 4

9.
Analyzing markets using various elasticities of demand Chapter 5

10.

11.

12
When Government intervenes in markets Chapter 6

13.
Welfare and efficiency Chapter 7

14.
Production technology as a tool for benchmarking of decision-making units Teaching notes

15.

16.

17.
Market structure and market power Chapter 14

18.
Entry, exist and long-run profitability Chapter 15

19.
Pricing strategy Chapter 16

20.

5. Evaluation

a) Quizzes (four): 40 points (= 4 10)
b) Assignment: 5 points
c) Presentation: 10 points
d) Classroom participation: 5 points
e) End-term examination: 40 points

6. Academic Integrity

Utmost care is taken as to maintain class decorum, follow the exact evaluation norms, conduct fair examinations, fair and transparent evaluation of examination papers, etc. to maintain the highest academic integrity.

Created By: Alora Kar on 08/03/2020 at 12:15 PM
Category: MBA(Exe.)2020-21 T-I Doctype: Document

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Session No.	Topics/Activities	Reading / case list
1.	The core principles of economics for decision making by individual consumer and producer	Chapter 1
2.
3.	Demand: Thinking like a buyer	Chapter 2
4.	Testing the rationality principle for individual decision using the law of demand with applications	Teaching notes
5.
6.
7.	Supply: Thinking like a seller	Chapter 3
8.	Market equilibrium	Chapter 4
9.	Analyzing markets using various elasticities of demand	Chapter 5
10.
11.
12	When Government intervenes in markets	Chapter 6
13.	Welfare and efficiency	Chapter 7
14.	Production technology as a tool for benchmarking of decision-making units	Teaching notes
15.
16.
17.	Market structure and market power	Chapter 14
18.	Entry, exist and long-run profitability	Chapter 15
19.	Pricing strategy	Chapter 16
20.