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ME-R08
(PGDM [RM] 2008-2010 : Term-I)

MANAGERIAL ECONOMICS
(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 (both in rural & corporate sector) 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. Attempts will be made to solve problems related to the rural sector faced generally by the rural managers.
COURSE CONTENTS

Contents No. Of Sessions


· Demand and Supply Analysis:
- Background of demand: Utility Analysis & Consumer’s Equilibrium 04
- Individual & Market Demand; Demand Elasticities; · Production Analysis: Production Function, Producers Equilibrium 03
· Analysis of Cost and Cost Function 03
· Breakeven Analysis 01
· Pricing Strategies & Pricing under different Market Structure 05


SESSION PLAN

Session
Topic
Exercises
1Introductory: Utility – Measurement of utility cardinal and ordinal measurement
2 - 3Consumers Equilibrium & derivation of individual demand curveEx. 1
4 – 5Demand Function & Demand CurveEx. 2
5 - 6Elasticity of demand: Price, Cross & Income Elasticity and their usesEx. 3
7Revenue Implication of Demand Curve & Revenue Maximization Ex. 4
8Demand Estimation & Demand ForecastingEx. 5
9 - 10Theories of Production & Production FunctionEx. 6
11Producers Equilibrium
12Short-run & Long-run Cost CurveEx. 7
13Cost Minimization Ex. 8
14Break-Even-AnalysisEx. 9
15Market Structure
16Perfect Competition: Price & Output Determination Ex. 10
17Monopoly: Price & Output DeterminationEx. 11
18Oligopoly: Price & Output DeterminationEx.12
19 – 20Monopolistic Competition: : Price & Output DeterminationEx. 13 & Ex. 14


Note to the Students: The exercises will be done by the students which will be collected from published sources, since it may not be possible for the students 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.

Books for Reference:
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
    7.
Contemporary EconomicsMilton Spencer
    8.
EconomicsCampbell Mc-Connel
    9.
EconomicsEdwin Mansfield
    10.
Almost Everyone’s Guide to EconomicsGalbraith & Salinger
    11.
EconomicsBaumol & Blinder
    12.
Microeconomic Theory - A Mathematical ApproachJ. M. Henderson & R. E. Quandt
    13.
Economics in Plain EnglishLeonard Silk
    14.
Economic Theory & Operations AnalysisW.J. Baumol
    15.
Introductory EconomicsMichael Veseth
    16.
EconomicsEdwin Managield
    17.
Managerial EconomicsPeppers & Bails
    18.
Managerial EconomicsJoel Dean
    19.
Economics for Business DecisionsMantell and Singh
    20.
A course in MicroeconomicsDavid M. Kreps
    21.
MicroeconomicsM.L. Katz & H.S. Rosen
    22.
Microeconomics AnalysisH.R. Varian

Evaluation:
Quizes - 20%
Mid-Term Exam - 35%
End-Term Exam - 45%
GOOD LUCK
Created By: Bijoy Kar on 06/24/2008 at 03:03 PM
Category: PGPRM - I Doctype: Document

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