EA-I-P06

EA-I-P06
(PGP 2006-08 : Term-I)

ECONOMIC ANALYSIS–I
(Faculty: Dr. P. Mishra)

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 introduces certain basic micro-economic principles and their application in several functional areas of business management since the principles are directly or indirectly related to these areas. The course focuses only on certain micro-economic concepts, which are generally used in the said functional areas, and obviously is not a detailed analysis of micro-economic theory from the point of view of an economist.

The course covers topics/concepts from micro-economics which are generally encountered by managers in business decision making process. 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
1. Introductory
2. Market Demand and Supply Analysis:
3. Demand Forecasting.
4. Demand &Revenue Relationship, Revenue Maximization
5. Production Analysis: Laws of Production, Production Functions, and Producers Equilibrium.
6. Analysis of Cost and Cost Function
7. Breakeven Analysis
8. Pricing Strategies & Pricing under different Market Structure

Session Plan
Session I
Introductory :
Discussion course out line, Micro/Macro economic analysis
Discussion on background of demand,
Session II , III,IV& V
Market Demand and Supply Analysis:
Demand Analysis: Demand Function and Demand Curve
Demand Elasticities, Market Supply & Demand –Supply Equillibrium
Session VI
Market Demand &Revenue Relationship,Revenue Maximisation
Session VII
Demand Forecasting.
Session VII, VIII & IX
Production Analysis: Laws of Production, Production Functions, Producers Equillibrium
Session IX & XI
Analysis of Cost ,Cost Functions, Cost Minimization
Session XI I
Breakeven Analysis
Session XII to XX
Pricing Strategies & Pricing under different Market Structure
Perfect Competition,Monopoly,Oligopoly and Monopolistic Competition.
Pedagogy:
There will be lecture sessions to introduce the topics. After the class session, relevant handouts will be given to the students so that they can pinpoint their studies to the relevant concepts and their applications. Exercises (from the reference books and other teaching materials) will be done in the class relating to the topics covered during the lecture session. Study/practice material will be given/suggested.
Evaluation
There will be quizzes, mid term and end term examination to evaluate the performance of the students. The following distribution will be followed:
Quizzes 20%
Mid Term 25%
Exercises 10%
End Term 40%
Class Participation 5%

Books for Reference:
There are a large number of books on Micro Economics and Managerial Economics in the XIMB Library. However, the students may refer the following books. References of books for the different chapters will also be given in the class. Handouts or copies of the PPT/Transperancies will be given after the class is over or the next day.

	Title	Author(s)
1.	Managerial Economics Analysis & Strategy Managerial Economics Managerial Economics	E.J. Douglas H.C.Petersoen,W.C.Lewis and S.K.Jain H.C.Petersoen,W.C.Lewis
2.	Principles of Managerial Economics	Davis & Chang
3.	Economics	P.A. Samuelson
4.	Theory & Problems of Micro-Economic Theory; 3rd Edition: Schaum’s Outline Series	Dominick Salvatore
5.	Contemporary Economics	Milton Spencer
6.	Economics	Campbell Mc-Connel
7.	Economics	Edwin Mansfield
8.	Almost Everyone’s Guide to Economics	Galbraith & Salinger
9.	Economics	Baumol & Blinder
10.	Microeconomic Theory - A Mathematical Approach	James M. Henderson & Richard E. Quandt
11.	Economics in Plain English	Leonard Silk
12.	Economic Theory & Operations Analysis	W.J. Baumol
13.	Introductory Economics	Michael Veseth
14.	Economics	Edwin Managield
15.	Managerial Economics	Peppers & Bails
16.	Managerial Economics	Joel Dean
17.	Economics for Business Decisions	Mantell and Singh

Created By: Bijoy Kar on 06/17/2006 at 01:24 PM
Category: PGP-I Doctype: Document

...........................