K J Somaiya Institute of Management Studies & Research

Vidyanagar, Vidyavihar (E)

Mumbai - 400077
AOL/01/2016

Course Details

Program

Trimester

Course Objectives
and Outcomes

Faculty Email ID

PGDM A
&B
Trimester I

prema@simsr.somaiya
Faculty Contact
Number

Faculty Name

Dr. Prema Students Contact

Basargekar Hours

Course Name

Managerial Course Code

Economics

Max Marks

100 Marks

3063

4.5 hours per week

Credits
1

To impart basic knowledge of economic theories, concepts and

tools to arrive at economic decisions

To understand the scope and subject matter of managerial

economics and its relationships with other management subjects.

To understand the dynamics of demand and supply factors at the

firms level and understand the firms capability to withstand
market forces

To understand the characteristics of various markets and the

strategies firm can adopt to achieve the objectives.

QMS 5.0/ session plan/ 2016-17/version 5.0/ 1.1/ Managerial Economics

K J Somaiya Institute of Management Studies & Research

Vidyanagar, Vidyavihar (E)
Mumbai - 400077
AOL/01/2016

Course
Coverage/ Upon completion of the course the students will be able to :
Topics relevant to
the Learning Goals
Use the economics concepts and theories to understand the business
(LG)
environment.(MK***)
Indicate extent to
which the same is
addressed for each
LG
* - Addresses the
Learning
Goal
Barely
** - Addresses the
Learning
Goal
Moderately
*** - Addresses the
Learning
Goal
Strongly

Understand the economic forces that create business environment for any
business and to understand the market structure and nature of competition in any
industry.(MK***)
How optimization techniques can be used to minimize the costs and maximize
the revenue for the organization.(CT**)
To understand how global and multinational organization use optimization
techniques and strategies to sustain in the long run (GA*)
Learning objectives: The students will be able to analyse and scan business
environment by applying concepts learnt in the course and will develop critical
thinking ability.

Pedagogy/Learning
Methodology

Indicative of

Student
Activity/

Interaction/
Peer

Learning in form

of
(Assignments,
Quiz,
Group Project,
Group
Presentations,
etc., )
Session Plan
Sessi
on
No.
1

Power point presentations

Interactive sessions
Case study analysis
News analysis & review of articles
Guest lectures

Topics to be Covered

Ten Principles of
Economics

Pre Readings/
Suggested
Readings /
Cases
Mankiw:
Economics
Principles &
Applications-

Remarks

Student
activities

QMS 5.0/ session plan/ 2016-17/version 5.0/ 1.1/ Managerial Economics

K J Somaiya Institute of Management Studies & Research

Vidyanagar, Vidyavihar (E)
Mumbai - 400077
AOL/01/2016

Chapter 1
2

The Art & Science of

Economic Analysis
The Economic Problem:
Scarce Resources,
Unlimited Wants
The Art of Economic
Analysis
The Science of Economic
Analysis
Demand, Supply &
Markets
Demand, The Law of
Demand, The demand
Schedule & Demand Curve
Shifts of the demand Curve
Supply,
The
Supply
Schedule & the Supply
Curve
Shifts of the Supply Curve
Demand, Supply &
Markets cont..
Market,
Market
Equilibrium
Changes in Equilibrium
Price & Quantity
Disequilibrium
Recap of first 4 sessions/
Internal test/ Case study
Elasticity of Demand &
Supply
Price Elasticity of Demand
Income
Elasticity
of
Demand
Cross Elasticity of Demand
Categories
of
Price

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 1

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 4

Micro ECON by Student

McEachern/
Presentation
Kaur, Ed. 2
chapter 4

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 5

QMS 5.0/ session plan/ 2016-17/version 5.0/ 1.1/ Managerial Economics

K J Somaiya Institute of Management Studies & Research

Vidyanagar, Vidyavihar (E)
Mumbai - 400077
AOL/01/2016

10

11

12

Elasticity
Elasticity of Demand &
Supply Cont
Elasticity & Total Revenue
Determinants of Price
Elasticity of Demand
Price Elasticity of Supply
Determinants of Supply
Elasticity
Applications of Elasticity
in Business
Consumer
Choice
&
Demand
Utility Analysis
The Law of Diminishing
Marginal Utility
Marginal Utility & the Law
of Demand
Consumer surplus
Consumer
Choice
&
Demand cont
Indifference Curves &
Theory of Demand
Consumer Equilibrium
The theory of consumer
Choice
Substitution & Income
Effect

Micro ECON by Student

McEachern/
Presentation
Kaur, Ed. 2
chapter 5

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 6

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 6

Student
Presentation

Case
study,
Recap,
Numerical problems
Internal test/ quiz
Theory of Production and
Cost
Cost & Profit
Production in the short run

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 7

QMS 5.0/ session plan/ 2016-17/version 5.0/ 1.1/ Managerial Economics

K J Somaiya Institute of Management Studies & Research

Vidyanagar, Vidyavihar (E)
Mumbai - 400077
AOL/01/2016

13

14

15

16

17

18

The Law of Diminishing

Marginal Returns
Total & Marginal Product
Curves
Three Stages pf Production
Theory of Production and
Cost cont
Production in the Long
Run
The Law of Returns to
Scale
Cost Concepts
Theory of Production and
Cost cont
Costs in the Short run
Relationship
between
Marginal & Average Cost
Costs in the Long Run
Economies of Scale
Diseconomies of Scale
Alternative Objectives of
the Firm
Traditional Theory of
Profit Maximization
Baumols theory of sales
Maximization
Cyert
&
Marchs
Behavioural Theory of a
Firm
Case
study,
Recap,
Numerical problems
Internal test/ quiz

Micro ECON by Student

McEachern/
Presentation
Kaur, Ed. 2
chapter 7

Perfect Competition
An introduction to Perfect
competition
Short-Run
Profit

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 9

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 7

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 8

Student
Presentation

QMS 5.0/ session plan/ 2016-17/version 5.0/ 1.1/ Managerial Economics

K J Somaiya Institute of Management Studies & Research

Vidyanagar, Vidyavihar (E)
Mumbai - 400077
AOL/01/2016

19

20

21

22

Maximization
Economic Profits in the
Short-Run
Minimizing
Short-Run
Losses
The Firm & Industry
Short-Run Supply Curves
Perfect Competition cont..
Perfect Competition in the
Long Run
The Long-Run Industry
Supply Curve
Implications of Perfect
Competition

Micro ECON by Student

McEachern/
Presentation
Kaur, Ed. 2
chapter 9

Monopoly
Barriers to Entry
Revenue
for
the
Monopolist
The Firms Costs & Profit
Maximization
Monopoly Cont
Monopoly & Allocation of
Resources
Deadweight
Loss
of
Monopoly
Price Discrimination
Implications of Monopoly
Monopolistic competition
& Oligopoly
Monopolistic competition
Characteristics
of
Monopolistic Competition
Economic Profits in the
Short Run & in the Long
Run
Comparison
between

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 10

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 10

Micro ECON by Student

McEachern/
Presentation
Kaur, Ed. 2
chapter 11

QMS 5.0/ session plan/ 2016-17/version 5.0/ 1.1/ Managerial Economics

K J Somaiya Institute of Management Studies & Research

Vidyanagar, Vidyavihar (E)
Mumbai - 400077
AOL/01/2016

Perfect Competition &

Monopolistic Competition
23

24

25
26
27

28

Monopolistic competition
& Oligopoly cont
An
Introduction
to
Oligopoly
Characteristics
of
Oligopoly

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 11

Monopolistic competition
& Oligopoly cont
Models of Oligopoly
Cournots Model
Sweezys Model
Cartels
Leadership Model
Game Theory
Implications of Oligoply
Case
study,
Recap,
Numerical problems
Internal test/ quiz

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 11

Economic Regulation &

Antitrust Policy
Types of Government
Regulation
Regulating
a
Natural
Monopoly
Alternative Theories of
Economic Policies
Antitrust
Policies
&
Enforcement
Mergers & Public Policies
Guest Lecture on Applying
Economic Concepts in
Business

Micro ECON by
McEachern/
Kaur, Ed. 2
chapter 17

Student
Presentation

QMS 5.0/ session plan/ 2016-17/version 5.0/ 1.1/ Managerial Economics

K J Somaiya Institute of Management Studies & Research

Vidyanagar, Vidyavihar (E)
Mumbai - 400077
AOL/01/2016

29

30

Required Text and

Course Material

Micro ECON by

Student
Presentation
Student
Presentation

Case
study,
Recap,
Numerical problems
Internal test/ quiz

Books/Journals/Magazines/
Readings

Author

McEachern &
Kaur, Ed. 2

Articles from Economist and Business

Newspapers

Publisher/Ye
ar/
Cengage
Learning,
2014

General Learning Goals Assessed *

PSG1

Atte
nda
nce
Qui
zzes
Gro
up
assi
gnm
ent
Inte
rnal
Test
Ter
m
end
exa
m

PSG2

LG1
(MK)

LG2
(CT)

LG3
(CS)

LG4
(TO)

LG5
(GA)

10%
20
%
10%

10
%
50%

QMS 5.0/ session plan/ 2016-17/version 5.0/ 1.1/ Managerial Economics

LG6
(ER)

K J Somaiya Institute of Management Studies & Research

Vidyanagar, Vidyavihar (E)
Mumbai - 400077
AOL/01/2016

Explanation of the
choice of methods News analysis will be used to measure Management Knowledge ability.
for assessment of It will assess the Practical Applications of Concepts in Management.
Learning Goals
Learning Goals*
1.
2.
3.
4.
5.
6.

LG 1(MK) = Management Knowledge

LG 2(CT) = Critical Thinking
LG 3(CS) =Communication Skills
LG 4(TO) = Team Orientation
LG 5(GA) = Global Awareness
LG 6(ER) = Ethical Responsibility

Program Specific Goals*

PGDM
PGDMInternational
Business
PGDM- Financial
Services
PGDM- Retail
Management
PGDM- Executive
PGDMCommunications

PSG1(IT) = Integrative Thinking

PSG2(L) =Leadership
PSG1(EIB) = Expertise in International Business
PSG2(SCGE) =Strategies in Changing Global Environment
PSG1(IFS)=Understanding Indian Financial System
PSG1(ITR) =Integrative Thinking in Retail
PSG2(CS)=Understanding Customer Service
PSG1(L) =Leadership
PSG1(MIC) =Managing Integrated Internal and External
Communication
PSG2(IMCP)=Designing Integrated Marketing Communication Plan

Internal assessment:

Attendance 10 Marks

Student presentation on News Analysis (Group activity) 10 Marks

Quiz 20 Marks
QMS 5.0/ session plan/ 2016-17/version 5.0/ 1.1/ Managerial Economics

K J Somaiya Institute of Management Studies & Research

Vidyanagar, Vidyavihar (E)
Mumbai - 400077
AOL/01/2016

Internal test 10 Marks

Total Internal Marks 50

Group assignment on News Analysis: (10 Marks):

Each group consisting of maximum 6 students will select any two new items related to
business/industry or economy. The group will present the news in front of class. Each
group will be given 15 minutes for presentation and 5 minutes for question & answers.
This test will also be used for AOL assessment. The presentation should cover following
points:

News details, date, coverage, etc

Relevance of economic concepts/ theories

Implications of the news on business

Conclusions

The assessment will be done based on following parameters:

Selection of news

Applying concepts/ theories and evaluation of news

Understanding implications of the news

Time management

Team work

QMS 5.0/ session plan/ 2016-17/version 5.0/ 1.1/ Managerial Economics