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MEM-X09
(PGDM-PT 2009-12 : Term-I)

Microeconomics for Managers
(Faculty: Dr. P. Mishra)

COURSE OUTLINE




Economics is the science of choice. It studies how people choose to use scarce or limited productive resources (labor, equipment, technical knowledge etc.) to produce various commodities (both capital & consumption goods) and to distribute these goods for consumption. Basically, there are two main branches of economics viz., micro and macro economics. Macro-economics studies the functioning of the economy as a whole and micro-economics analyses the behavior of individual components like industries, firms & households (individual consumers). Economic theories both micro and macro establish important principles for business practice. A manager is concerned with the application of economic principles and methodologies to the decision-making process. Thus, it is necessary to acquaint oneself with the basic tools of analysis in economics. This course covers analytical tools from micro-economics which are useful for managerial decision making. It introduces certain basic micro-economic principles and their application in several functional areas of management since the principles are directly or indirectly related to these areas. However, this course is not a detailed analysis of micro-economic theory from the point of view of an economist.

Attempts have been made to make the course a mix of basic micro economic concepts and their application to real-life problems. Thus, the pedagogy includes solving various real-life related problems during the class session itself.

COURSE CONTENTS
Contents
No. of Sessions
Demand and Supply Analysis:
06
· Background of demand: Utility Analysis & Consumer’s Equilibrium & Derivation of Demand Curve
· Demand Function & Demand Curve
· Demand Elasticities,
· Revenue Implication of Demand Curve & Revenue Maximisation
· Demand & Supply Equilibrium
· Demand Estimation & Forecasting
    Production Analysis: Theory of Production, Production Function, Producers Equilibrium
02
Analysis of Cost, Cost Function & Cost Minimsation
02
Breakeven Analysis
01
    Pricing Strategies & Pricing under different Market Structure
04

SESSION PLAN

Session
Topic
1Introductory: Utility – Measurement of utility cardinal and ordinal measurement
2 Consumers Equilibrium & derivation of individual demand curve
3Demand Function & Demand Curve
4Elasticity of demand: Price, Cross & Income Elasticity and their uses
5Revenue Implication of Demand Curve & Revenue Maximization
6Demand Estimation & Demand Forecasting
7Theories of Production & Production Function
8Producers Equilibrium
9Short-run & Long-run Cost Curve
10Cost Minimization
11Break-Even-Analysis
Market Structure
12Perfect Competition: Price & Output Determination
13Monopoly: Price & Output Determination
14Oligopoly: Price & Output Determination
15Monopolistic Competition: : Price & Output Determination

Note to the Participants: Exercises which will be collected from published sources will be done by the participants since it may not be possible to go to individual consumers / Industries/ Business enterprises (rural & urban) / organizations to collect data and use them to understand the Micro-economics concepts used in managerial decision-making. Several Case Studies are available in different books which will be discussed in the class. A base book is being given to the participants. However, references will be made and handouts given as and when necessary.

Books for Reference:

Sl.No.
Title
Author(s)
1.
Managerial Economics Analysis & StrategyE.J. Douglas
2.
Managerial EconomicsH.C.Peterson & W. Lewis
3.
Managerial EconomicsP.G.Keat & P.Young
4.
Principles of Managerial EconomicsDavis & Chang
5.
Economics P.A. Samuelson
6.
Theory & Problems of Micro-Economic Theory; 3rd Edition: Schaum’s Outline SeriesDominick Salvatore
8.
EconomicsCampbell Mc-Connel
9.
EconomicsEdwin Mansfield
10.
Almost Everyone’s Guide to EconomicsGalbraith & Salinger
11.
EconomicsBaumol & Blinder
12.
Economics in Plain EnglishLeonard Silk
13.
Economic Theory & Operations AnalysisW.J. Baumol
14.
Introductory EconomicsMichael Veseth
15.
EconomicsEdwin Managield
16.
Managerial EconomicsPeppers & Bails
17.
Managerial EconomicsJoel Dean
18.
Economics for Business DecisionsMantell and Singh
19.
A course in MicroeconomicsDavid M. Kreps
20.
MicroeconomicsM.L. Katz & H.S. Rosen
21.
Microeconomics AnalysisH.R. Varian

Note : The first two books are the base books. Handouts will also be given for a few topics.

Evaluation:
Quizzes & Exercises - 30%
Mid-Term Exam - 30%
End-Term Exam - 40%
Created By: Bijoy Kar on 06/30/2009 at 05:54 PM
Category: ExPGP-I Doctype: Document

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