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I. Introduction to the Course:

This course, Micro Economics for Managers, 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 business executives 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 Objectives of the Course:

• To provide the students a conceptual framework for effective decision-making.
• To inculcate the analytical skills, thereby enhance the ability to solve economic problems faced by the firms.
• 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.

Micro Economics for Managers, just like any other courses offered in a business school, intends to prepare managers for the corporate sector. It is not intended to prepare them to pursue further studies in the subject to make them economists. Considering that majority of executives may not have undergone formal education in economics earlier, various principles of micro-economics are taught, targeting at non-economics manager. Care will be taken to lower the students’ anxiety level without watering down the quality of the subject and its applicability.

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 · Utility Analysis · Consumer's equilibrium	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	6
3.	Production Analysis and Estimation · Laws of Returns · Laws of Returns to Scale · Empirical Production Functions · Producer's Equilibrium	o Samuelson & Nordhaus o Donald Watson o E.J. Douglas o Davis and Chang o Kuotsoyiannis o Peppers and Bails	4
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	3
5.	Break-even Analysis	o E.J. Douglas o Peppers and Bails o Davis and Chang o Dominic Salvatore	1
6	Profit Maximisation	o Davis and Chang o Samuelson & Nordhaus o Donald Watson	2
7.	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 Basic Reference Book:
The following book is being given to each of you, for basic reference:
“MANAGERIAL ECONOMICS" 8th Edition, Adapted Version, DOMINICK SALVATORE, 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.

Besides, a reading material, “MANAGERIAL ECONOMICS FOR NON-ECONOMICS MANAGERS” authored by me would be given.

For further reading, solving practical questions and problems, additional references are cited above, along with the respective topics.

V Evaluation:

Evaluation Component	Weight
Quizzes	25%
Mid-term examination	25%
Assignments	15%
End-term examination	35%

Please Note:

v Assignments, along with deadlines for submission will be announced during the course.
v You are advised to retain this course outline at least until the completion of the course. You might have to repeatedly refer to the course outline for suggested readings, pattern of evaluation, etc.
v Enforcement of discipline and code of conduct shall be in accordance with the Manual of Polices of the Institute.