programme

Managerial Economics

Home/ Managerial Economics
Course TypeCourse CodeNo. Of Credits
Foundation CoreSBP2MB1262

Semester and Year Offered: 1st Semester

Course Coordinator and Team: Nidhi Kaicker

Email of course coordinator: nidhi[at]aud[dot]ac[dot]in

Pre-requisites: None

Aim: To provide students with a basic understanding of the economic theory and analytical tools that can be used in decision making problems.

Course Outcomes:

At the end of the course, the participants will be able to:

  1. Understand the reason for existence of firms and economic goals of a firm
  2. Understand the role of managers in a firm and apply economic way of thinking to individual and business decisions
  3. Design competition strategies, including costing, pricing, product differentiation, and market environment according to the natures of products and the structures of the markets.
  4. Appreciate the role that governments play in market based economies.

Brief description of modules/ Main modules:

Unit 1: Fundamentals of Managerial Economics

Goals and constraints; markets and firms; demand, supply and equilibrium; economic way of thinking

Unit 2: Consumer Behaviour

Utility and indifferent curves; demand schedule, function law of demand; determinants of demand; elasticity – price, income and cross price; applications of elasticity and taxation; price controls

Unit 3: Producer Behaviour

Production function – short run and long run; product curves; types of costs; cost functions – short run and long run; supply curve; economies of scope, scale and learning curve

Unit 4: Market Structures

Types of market structures; perfect competition – price taker, shut down point, firm and market equilibrium, short run and long run equilibrium; monopoly, barriers to entry and monopolistic competition; oligopoly models and cartel

Unit 5: Economics of Information

Pricing strategies; asymmetric information and auctions; role of government in marketplace

Assessment Details with weights:

Nature of Assessment

Weight

Analysis of Cases

30%

Term Paper / Group Project

30%

End Term Assessment

40%

 

Reading List:

  • Mankiw, N.G. (2012). Principles of Economics, 6thedition, Cengage: New Delhi
  • McEachern, W. A. andKaur, S. (2012). Micro ECON: Principle of Microeconomics, Cengage: New Delhi
  • Peterson, C.H., Lewis, W.C. and Jain, S.K. (2006). Managerial Economics, 4thedition, Dorling Kindersley: New Delhi
  • Pindyck, R.S., Rubenfeld, D. L. and Mehta, P.L. (2009). Microeconomics, 7thedition, Pearson: New Delhi
  • Salvatore, D. (2012). Managerial Economics: Principles and Worldwide Application, 7thedition, Oxford University Press: New Delhi

ADDITIONAL REFERENCE:

  • Additional Cases and Readings / Articles are provided to the participants in form of a course manual as the commencement of the session.