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EA I - P05


XAVIER INSTITUTE OF MANAGEMENT
BHUBANESWAR
PGP – I (Term – I)
Instructor: Dr. LATHA RAVINDRAN



COURSE OUTLINE

ECONOMIC ANALYSIS – I
(A Course on Managerial Economics for Non-Economics Managers)

I. Introduction to the Course:

Economic Analysis – I deals with an application of principles of micro- economics to business decision- making. It examines the factors underlying demand and supply, behavior of firms under various market structures and the role of price system in an economy. This course is designed to introduce the potential business managers to the subject matter of microeconomics, which is also often referred to be the theory of the firm. It uniquely integrates the discipline to other managerial functions, including financial accounting, finance, human resource management, and marketing. The focus and orientation of the course is towards application of micro-economic theories in real life situations.

This course, just like any other courses offered in a business school, intends to prepare managers for the corporate sector. It is not the primary intention to prepare them to be economists or for pursuing further studies or research in economics. This course teaches students how to make better business decisions, not how to build models. Considering that vast majority of students may not have undergone formal education in economics prior to joining this Programme, various principles of micro-economics are taught targeting at students with non-economics background. Care therefore is taken to lower the students’ anxiety level, without watering down the quality of the subject and its applicability. However, the students are required to possess some amount of knowledge on quantitative methods such as estimation and optimization techniques. Familiarity with the use of multiple regression and differential calculus is a pre-requisite to the course and hence those not familiar with these techniques are urged to learn them within a fortnight after the commencement of the course.

II. Objectives of the Course:

¨ To provide the students a conceptual framework for optimal decision-making.

¨ To provide practical insights into the applicability of micro-economic theories in reality by means of real-life examples, case studies and exercises.

¨ To improve the analytical skills, quality of decision-making and the ability to arrive at solutions to the problems faced by the firms.

III. Course Contents:

Sl. No.TopicsSuggested Readings (Authors’ Names)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 for Decision Making
· Definition and Determinants of Demand
· Law of Demand
· Elasticities of Demand
· Demand Estimation
· Utility Analysis
· Consumer’s Equilibrium		 o E.J. Douglas
o Davis and Chang
o Peppers and Bails
o Joel Dean
o Dominic Salvatore
o Edwin Mansfield
o Byrns and Stone		 7
3.Production Analysis for Decision Making
· Laws of Returns
· Laws of Returns to Scale
· Empirical Functions
· Producer’s Equilibrium		 o E.J. Douglas
o Davis and Chang
o Peppers and Bails
o Dominic Salvatore
o Samuelson and Nordhaus
o Kuotsoyiannis		 3
4.Cost Analysis for Decision Making
· Short run Functions
· Long run Functions
· Economies of Scale and Diseconomies of Scale		o E.J. Douglas
o Davis and Chang
o Dominic Salvatore
o K.K. Seo
o Frank Livesey
o Andrew Dunnet		3




5.Break-even Analysiso E.J. Douglas
o Davis and Chang
o Peppers and Bails
o Dominic Salvatore		1
6.Conditions for Maximisation of Profit o Samuelson and Nordhaus
o Donald Watson
o E.J. Douglas
o Davis and Chang
o Peppers and Bails
o Dominic Salvatore		 1
7.Pricing Strategies and Optimum Pricing Under Different Market Structureso Samuelson and Nordhaus
o Donald Watson
o E.J. Douglas
o Davis and Chang
o Dominic Salvatore		4

IV. Evaluation:

Like any other course in this programme, Economic Analysis – I also is based on continuous evaluation categorized into the following components, with weights assigned to each of them.

Evaluation ComponentWeight
Quizzes30%
Mid-term Exam.35%
End-term Exam.35%


V. Off-Class Contacts:

Each student is encouraged to feel free to contact me either in my office during the office hours or by Email or telephone, for clarification of any doubts relating to the course. The contact details are:

Office212
Office Intercom210
Preferred Timings, unless specified14.00 – 16.00 hrs (Monday – Friday)
Phone (Residence)2741074
Mobile9437061074


Dr. Latha Ravindran
Professor
Economics Area

Created By: Partha Sen on 06/13/2005 at 12:20 PM
Category: Miscellaneous Doctype: Document

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