Course Outline

Xavier Institute of Management
Bhubaneswar

EA-I-P07
(PGDM 2007- 09 : Term-I)

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

Faculty : Prof. Latha Ravindran
Contact Details :
E-mail : lata@ximb.ac.in
Extn. 810

I. Introduction to the Course:

The course deals with an application of micro- economics principles to business decision making. It examines the factors underlying demand and supply, behaviour of firms under various market structures and the role of price system in the economy. This course is designed to introduce the potential business managers to the subject matter of economics, wherein various economic theories and quantitative methods can be applied to business decisions such as pricing, production, profit maximisation and so on.

II Objectives of the Course:

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

• To improve the analytical skills, quality of decision-making and the ability to solve economic problems faced by the firms.

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

Economic Analysis- I, just like any other courses offered in a business school, intends to prepare managers for the corporate sector. It is not intended to prepare them to pursue further studies in the subject to make them economists. Considering that majority of students may not have undergone formal education in economics earlier, various principles of micro-economics are taught, targeting at non-economics manager. Care will be taken to lower the students’ anxiety level without watering down the quality of the subject and its applicability.

III Course Contents:

Sl. No.	Topics	Suggested 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 and Estimation · Determinants of Demand · Law of Demand · Elasticities of Demand · Demand Estimation · Demand forecasting · 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	6
3.	Production Analysis and Estimation · Laws of Returns · Laws of Returns to Scale · Empirical Production Functions · Producer's Equilibrium	o Samuelson and Nordhaus o Donald Watson o E.J. Douglas o Davis and Chang o Kuotsoyiannis o Peppers and Bails	3
4.	Cost Analysis and Estimation · Short run cost Functions · Long run cost Functions · Economies and Diseconomies of Scale	o Michael Veseth o Frank Livesey o Andrew Dunnet o Donald Watson o E.J. Douglas o Davis and Chang o Dominic Salvatore o K.K. Seo	3
5.	Break-even Analysis	o E.J. Douglas o Peppers and Bails o Davis and Chang o Dominic Salvatore	2
6	Profit Maximisation	o Davis and Chang o Samuelson and Nordhaus o Donald Watson	1
7.	Pricing Strategies in Different Market Structures · Perfect Competition · Monopoly · Monopolistic Competition · Obigopoly	o Samuelson and Nordhaus o Baumol and Blinder o E.J. Douglas o Davis and Chang o Dominic Salvatore o Donald Watson	4

IV Evaluation:

Evaluation Component	Weight
Quizzes	30%
Mid-term Exam.	35%
End-term Exam.	35%

Please Note:

You are advised to retain this course outline at least until the completion of the course, as you will have to use this repeatedly to refer for suggested readings, pattern to evaluation, etc.