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2. Student Learning Outcomes (typically 3-5 bullet points)
· Be able to ….. understand the basic concepts and techniques of microeconomic analysis and their applications to managerial decision makings.
· Be able to …. understand how price theory can be employed to formulate a decision problem, establish a decision criterion, and generate some of the information required to evaluate the alternative courses of actions.
· Be able to …. understand how theory of production can be employed to arrive at differential weight structures that can be used to assess credit risk, ratio analysis, stock selection, industry rankings, performance evaluation of employees, etc.
· Be able to … understand various indicators of firm performance such Technical efficiency, Cost efficiency, Revenue efficiency, Allocative efficiency, Productivity (and Eco-productivity) growth and its drivers – Technical Efficiency and Technical Change, and their linkage with financial performance.

3. Required Text Books and Reading Material

Text Book

Salvatore, D. and Srivastav, R. (2009) Managerial Economics: Principles and Worldwide Applications, New Delhi: Oxford University Press

Reading Lists
Michael R. Baye, Managerial Economics and Business Strategy, McGraw-Hill International Edition.
Robert H. Frank, Microeconomics and Behavior, New York: McGraw-Hill Publishing Company.
Hall R. Varian, Intermediate Microeconomics: A Modern Approach, New York: W. W. Norton & Company.

4. Tentative Session Plan

Session Number	Topics/Activities	Reading/case list etc.
Module I	Consumer Behavior and Demand Analysis
1	What is Microeconomics? How is it different from Business?	Text Book, Teaching Note
2	Utility; Indifference curve; Marginal rate of substitution; Budget line; Consumer’s equilibrium	Text Book, Teaching Note
3	The demand-supply framework and the concept of a market	Text Book, Teaching Note
4	Determinants of consumer demand and producer supply	Text Book, Teaching Note
5	The demand curve; price elasticity; cross elasticity; income elasticity, Relationship among price elasticity, total revenue, average revenue and marginal revenue	Text Book, Teaching Note
6	Applications: · Which tax system is better - direct versus indirect tax? · Which subsidy is better – cash versus kind subsidy? · Indexing of social security payments	Text Book, Teaching Note
7	Applications · Why do some tennis clubs have an annual membership charge in addition to their hourly court fees? · The welfare effects of changes in housing prices · Can good news for farming be bad news for farmers? · Does drug interdiction increase or decrease drug-related crime?	Text Book, Teaching Note
8	Case Study Discussion
Module II	Production Decisions and Cost-Output Relationship
9	Analysis of production process; total, marginal, and average product; Input combinations choice; Returns to scale; Production function	Text Book, Teaching Note
10	Various indicators of firm performance (I): Analysis of Technical efficiency, Cost efficiency, Revenue efficiency, Allocative efficiency	Teacher’s Notes
11	Various indicators of firm performance (II) Analysis of Productivity (and Eco-productivity) growth and its drivers – Technical Efficiency and Technical Change	Teacher’s Notes
12	Various indicators of firm performance (III): · Analysis of Technological CU and its underlying causal factors · Analysis of Profit and Cost changes and their underlying drivers	Teacher’s Notes
13	Various concepts of costs: · Cost-output relation in the short run and long-run · Long-run costs and economies of scale · Minimum efficient scale, Firm size, and Plant size · Learning curves, Economies of scale and scope	Text Book, Teaching Note
14	Derived demand for inputs Cost-volume-profit analysis	Text Book, Teaching Note
15	Applications of the theory of production · Measuring credit risk/audit risk of company/people · Ratio analysis; stock selection, industry ranking · Performance evaluation of firms/employees	Teacher’s Notes
16	Case Study
Module III	Pricing under Alternative Market Structures
17	The Organization of the firm and the Nature of industry Pricing in a perfectly competitive market	Text Book, Teaching Note
18	Monopoly Monopolistic competition	Text Book, Teaching Note
19	Oligopoly	Text Book, Teaching Note
20	Pricing strategy	Text Book, Teaching Note

5. Evaluation

Quizzes (Known & Surprise) : 20%
Assignment, Classroom
Participation and Attendance : 10%
Mid-term examination : 35%
End-term examination : 35%

6. Academic Integrity

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

Created By: Debasis Mohanty on 06/02/2012 at 11:41 AM
Category: PGDM-I Doctype: Document