Lovely Professional University, Punjab

INSTRUCTION PLAN (for Courses with Lectures, Tutorials, no Labs)

Term: 1st
Course No. ECO 515 Course Title: MANAGERIAL ECONOMICS L: 4 T: 1 P: 0 Cr:5

Textbook: 1.Salvatore,D.,and Srivastava,R.”Managerial Economics:Principles and Worldwide Applications”,Oxford

University Press,2009

Other specific books:

2.Hirschey, Mark, “Economics for Managers”, South Western Cengage Learning, 2008

3. Shapiro, Edward, Macro Economics, Galgotia Publications, 2006

th
4. Thomas Christopher R., and Maurice S. Charles, Managerial Economics – Concepts and Applications, 8
Edition, Tata McGraw Hills, 2006

5.H.L. Ahuja, Advanced Economic Analysis, S.Chand & Co. Ltd, New Delhi
Other readings:

S.No. Journal articles as compulsory readings

6. Income elasticity of demand by Geoff Riley, Eaton College, September 2006

7. Indifference Curve Analysis ; Gillespie Foundations of Economics

http://www.oup.com/uk/orc/bin/9780199296378/01student/advanced/02indifference
8. Price Discrimination by Geoff Riley, Eaton College, September 2006
http://tutor2u.net/economics/revision-notes/a2-micro-price-discrimination/html
1
 9. The kinked demand curve
www.S-cool.co.uk/alevel/economics/market-structure-2/the kinked-demand-curve-model.html
10 Diminishing Marginal Utility:It’s a Law by Art Carden
http://mises.org/story/3100
11 Price and Output Determination in Monopolistic Competition
http://wps.prenhall.com/bp_casefair_econf_7e/30/7934/2031304.cw/index.html
12 Perfect Competition
http://tutor2u.net/economics/revision-notes/a2-micro-perfect-competition.html
13 Price Discrimination
http://tutor2u.net/economics/revision-notes/a2-micro-price-discrimination.html
14 Elasticity of Demand and Supply by Dr.Savvas C Savvides-School of Business,European University,Cyprus
http://www.wepapers.com/papers/16598/Elasticity_of_demand_and_supply
15
Cost of Production:The isoquant-isocost approach
http://classes.sattleu.edu/economics/econ468/green/Articles/isoquant%20and%20Isocost.pdf
16
The Costs of Production by Ralph T.Byrns
http://www.unc.edu/depts/econ/byrns_web/ModMicro/MM08_Costs/Interm_MICRO_08.pdf

Relevant websites:
S.No. Web address Salient Features
17
www.berkeleymath.com/BerkeleyJournal.aspx Published Papers of Kellogg School of Management
18.
www.economics-ejournal.org Policy Papers
19.
www.worldbank.org Global Current Development Papers

2
 20. www.imf.org Debates on global problems
21. www.cdgev.org Leading think tank for global development
22.
www.berkeleymath.com/BerkeleyJournal.aspx Published Papers of Kellogg School of Management
23.
http://mitworld.mit.edu Videos from MIT on various economic issues

Detailed Plan for Lectures

Week No. Lecture Topic Chapters/ Homework/ Pedagogical tool Pedagogical tool Date
No. Sections of Task to be Demonstration/ Demonstration/ Delivered2
Textbook/ other assigned case study/ case study/
(Mention
reference1 to images/ images/ Regular (R)
students 3 animations animations / Make Up
4
etc.planned etc.actually
(M) class)
used
Part 1 (one fourth of total number of lectures)
1 1 Introduction to Managerial Case study:
Economics; Concepts Book 1 Ch.1 Manageri
al ethics
Book 4 Ch.1 Book2
Page 4
1 2 Techniques and Scope of Book1
Managerial Economics Ch.1,Ch.2
Book 2Ch.2
1 3 Role of business in society Book 2Ch.1 Case study:
Is Coca
Cola the
“perfect”

3
 business
? Book2
P.19
1 4 Market demand and supply: Book 1 Ch.3
Basis for demand
Book 2Ch.3
Book 4 Ch.2
Book 5 Ch 5
2 5 Direct and Derived demand; Book1 H.W.1 Case study:
market equilibrium Ch.3,Ch.4 Spreadsheet
Book 2Ch.3 analysis of
demand and
supply for
Sunbest
orange juice.
Book2 P.88
2 6 Consumer behavior: Utility Book 2Ch.4
analysis
Book 4 Ch.5
Book 5 Ch.5

2 7 Consumer behavior: Utility Book 2Ch.4 Managerial

analysis application:
Book 4 Ch.5
Odd
Book 5Ch.5 numbered
pricing
riddle.
Book2 P.97
2 8 Indifference curves Book 2 Ch.4 http://www.y
outube.com/
Book 4 Ch.5
4
 Book 5 Ch6, watch?v=lpt
apz6miqs
Ch.7

3 9 Indifference curves Book 2Ch.4 T.P. http://www.y

Book 4 Ch..5 outube.com/
watch?v=uT
Book 4 CD5YDD5D
Ch6,Ch.7 w
(Lecture on
Indifferen
ce
Curve)
3 10 Indifference curves Book 2Ch.4 Managerial
Book 4 Ch.5 applicatio
n:
Book 5 Relatiosh
Ch6,Ch.7 ip
marketin
g. Book2
P.105
3 11 Price, income and cross Book 2 Ch.5 http://www.y
elasticities of demand outube.c
Book 4 Ch.6
and their applications. om/watch
Book 5 Ch.12 ?v=LHv4
SnEUcZ
A

3 12 Price, income and cross Book 2Ch.5 Case study:

elasticities of demand and Optimal
Book 4 Ch.6
their applications. level of

5
 Book 5 Ch.12 advertisin
g for CSI,
Inc.
Book2
P.158
4 13 Demand curves and Book 2Ch.4 H.W.2 Case study:
consumer’s surplus Why is
Book 5 Ch.13
tracking
consume
r demand
so
tough?
Book2
P.125
Part 2 ( another one fourth of total number of lectures)
4 14 Production theory: Book 1 Ch.6 http://www.y
Production functions Book 2Ch.8 outube.c
om/watch
Book 3 Ch.8 ?v=JNS_
Book4 Ch.16 rntqUcM

4 15 Production theory: Book 1 Ch.6

Production functions Book 2Ch.8
Book 3 Ch.8
Book4 Ch.16
4 16 Total, Marginal and Average Book 1 Ch.6
Production curve Book 2Ch.8
Book 4 Ch.8
Book 5 Ch.21
6
5 17 Law of diminishing returns to Book1 Ch.6
factor Book 2Ch.8
Book 4 Ch.8
Book 5 Ch.16

5 18 Input combination choice Book 2 Ch.8

Book 4 Ch.9
Book 5 Ch.19
5 19 Returns to scale Book 1 Ch.6 Case study:
Book 2Ch.8 Employe
e
Book 4 Ch.9 productivi
Book 5 Ch.18 ty among
the
largest S
and P
500
firms.
Book2
P.272
5 20 Cost Analysis: Types of Book1 Ch.7
costs Book 2 Ch.9
Book 4 Ch.9
Book 5 Ch.20
6 21 Short run Cost Curves Book 1 Ch.7 http://www.y
Book 2 Ch.9 outube.c
om/watch

7
 Book 4 Ch.9 ?v=jNL9
PNfrKZI
Book 5 Ch.20
6 22 Long run cost curves Book 1 Ch.7 Case study:
Book 2Ch.9 Estimatin
g the
Book 4 Ch.9 costs of
Book 5 Ch.20 nursing
care for
regional
hospitals.
Book2
P.315
6 23 Economics of scope Book 2 Ch.9
6 24 Revenue analysis: types of Book4 Ch.21
revenue curves and their
applications
7 25 Market structure: Perfect Book 1 Ch.8 http://www.y
competition; assumptions Book 2Ch.10 outube.c
om/watch
Book 4 Ch.11 ?v=Hsqvj
Book 5 Ch.23 4THPtw

7 26 Price and output Book1 Ch.8

determination in perfect Book 2 Ch.10
competition-short period
Book 4 Ch.11
Book 5 Ch.24
MID TERM EXAM

8
Part 3 (another one fourth of total number of lectures)

7 27 Price and output Book1 Ch.8

determination in perfect
Book 2Ch.10
competition-short period
Book 4 Ch.11
Book 5 Ch.24
7 28 Price and output Book1 Ch.8
determination in perfect Book 2 Ch.10
competition-long period
Book 4 Ch.11
Book 5 Ch.24
8 29 Competitive market supply Book 2 Ch.10
curve Book 4 Ch.11
Book 5 Ch.24

8 30 Market equilibrium in Perfect Book 1 Ch.8 Case study:

Competition Book2 Ch.10 Profitabili
ty effects
Book 4 Ch.11 of firm
Book 5 Ch.24 size for
DJLA
compani
es.
Book2
P.341

9
8 31 Imperfect competition: Book1.Ch.8
Monopoly – features Book2 Ch.12
Book 4 Ch.12
Book 5 Ch.28
8 32 Price and output decisions Book2 Ch.12
Book 4 Ch.12
Book 5 Ch.28
9 33 Social cost and benefits of Book1 Ch.8 Case study:
monopoly Book2 Ch.12 Effect of
R and D
on
Tobin’s
q. Book2
P.418
9 34 Price discrimination Book 1 Ch.8 http://mitworl
d.mit.edu
Book 2 Ch.15
/video/22
Book 5 Ch.29 3

9 35 Dumping Book2 Ch.15

Book 5 Ch.29
9 36 Monopolistic competition: Book1 Ch.8
Features Book 2 Ch.13
Book 4 Ch.12
Book 5 Ch.32

10
10 37 Price and Output decisions- Book 1 Ch.8 H.W.3
Short & Long Run Book 2 Ch.13
Book 4 Ch.12
Book 5 Ch.32
10 38 Oligopoly: features; Book 1 Ch.8 http://www.y
Book 2 Ch.13 outube.c
om/watch
Book 4 Ch.13 ?v=5BQ
Book 5 Ch.38 Px8SL9F
4(Lecture
10 39 Collusions (introductory) Book 2 Ch.13 Case study:
Market
Book 4 Ch.13
structure
Book 5 Ch.38 analysis
at
Columbia
Drug
Stores,
Inc.
Book2
P.459
10 40 Kinked demand curve Book 1 Ch.8 http://www.y
Book 2 Ch.13 outube.c
om/watch
Book 5 Ch.39 ?v=5BQ
Px8SL9F
4(Lecture
on
Kinked
Demand

11
 Curve)

Part 4 (another one fourth of total number of lectures)

11 41 Distribution theory: Rent Book 5 Ch.51
11 42 Wages Book 5 Ch.49
11 43 Wages Book 5 Ch.49
11 44 Theories of Interest Book 5 Ch.52

12 45 Theories of Interest Book 5 Ch.52 H.W.4

12 46 Theories of profits Book 5 Ch.53

12 47 Theories of profits Book 5 Ch.53

12 48 Public policy: Externalities Book 2 Ch.20

13 49 Public policy: Externalities Book 2 Ch.20
13 50 Public and private goods Book2 Ch.20

13 51 Cost benefit analysis Book 2 Ch.20

13 52 Cost benefit analysis Book 2 Ch.20 Case study:
Oh Lord,
won’t you
buy me a
Mercede
s Benz
(factory)?

12
 Book2
P.707
Additional material for spill over (for at least 2XL lectures)
1 Cost of Production:The isoquant-
isocost approach Other
Readings 15

2 The Costs of Production Other

Readings 16
3 Long Run and Short Run Cost Curves Other
Readings
14
4 Diminishing Marginal Utility:It’s a Law by Other
Art Carden Readings 10

5 Price and Output Determination in Other

Monopolistic Competition Readings 11

6 Perfect Competition Other Readings

12
7 Price Discrimination Other
Readings 13

8 Challenges to the global economy Video:

http://mitworld
.mit.edu/video
/650

13
 Notes: 1. Use S. No. Of the readings above
2. To be filled in on the date of delivery of lecture by the instructor
3. Put homework number from Homework Table (below) against the lecture in which planned to be assigned (by co-ordinator). The
first homework should be planned for the 2nd week of classes and the last should be assigned at least two weeks before the last
day of classes.
4. Do not write Lecture, OHP, LCD projector etc.
5. DoA : date of Allotment
6. DoS: date of submission
Details of Homework and Case Studies Planned:
Homework Topics of the homework Nature of Homework Actual Actual Actual date of
No. (Group/individual/fieldwork) DoA5 DoS6 of task
Put tick against the evaluation
appropriate.
1 Case based homework Group(Analytical)

2 Each student to select two articles in the field Individual(Analytical)

of Managerial Economics from online
journals/magazines available and analyse
them and submit a report
3 Select a type of market (Perfect Competition, Individual(Analytical)
Monopoly, and Oligopoly) of your liking in
different sectors (Telecom, Steel,
Automobiles etc) in which you are working.
New entrants are waiting to enter. What
possible steps can you take to thwart their
moves.
4 Role of economies of scale in different Individual(Analytical)
sectors of the economy
Term paper to be allotted by lecture no. (should be allotted before the end of 4th week of

14
teaching and should be due at least two weeks before the last day of classes). The term paper
should be evaluated before the last day of classes and the marks communicated to the students
All The detailed homework problems to be submitted attached as annexure
Scheme for CA: (out of 100)
Component Frequen Marks for Total Marks
cy each
Homework Best 15 45
3 out of 4
Term paper 1 25 25
Any other: specify(Quiz) 2 15 30
Total 100

List of suggested topics for term paper (Student to spend about 15 hrs on any one specified assignment)
S.No. Topic
1 Market efficiency and role of Private sector
2 Dumping: Boon or Bane
3 Portfolio selection & law of Equi marginal utility

4 Incidence of tax on consumer equilibrium

5 Indian telecom sector and oligopolistic markets
6 Decreasing cost industry: A case of Indian software sector
7 Government interventions and creation of monopolies
8 Segregation of market and economies of scale

15
 9 Mergers and Acquisitions: Emergence of monopolies.

10 Role of Entry barrier in creation of Monopoly.

11 Monopolies in Socialistic economies.
12 Information Economies
13 Oligopoly : Indian Car Market
14 Inflationary incidence on consumer’s Equilibrium.
15 Role of advertisement in monopolistic market formation.

Plan for Tutorials : (Plan for 7 x T before MTE , 6 x T after MTE)

S. No. Topic (s) Type of Pedagogical tool Date held for Date held
pedagogical tool(s) actually used – group A. for group B
planned (case mention the title.
analysis, problem (case analysis,
solving, test, role problem solving,
play, business test, role play,
game etc) business game)
1 Techniques and Scope of Managerial Economics Doubt clearing
session
2 Demand and Supply Role play and
case based
presentations
(Evaluative)
3 Applications of Elasticities of Demand Role play and
case based
presentations
(Evaluative)

16
4 Production function Role play and
case based
presentations
(Evaluative)
5 Cost Analysis Quiz & Doubt
Clearing Session
6 Revenue Analysis Discussion on
Term Paper
7 Market Structures: Perfect Competition Doubt clearing
session
MTE
8 Market Structures:Monopoly Role play and
case based
presentations
(Evaluative)
9 Price Discrimination and Dumping Doubt clearing
session
10 Oligopoly Role play and
case based
presentations
(Evaluative)
11 Distribution Theory Quiz & Doubt
clearing session
12 Theories of Interest and Profit Discussion on
Term paper
13 Cost Benefit Analysis Doubt clearing
session

17
_______________________
Prepared by (Instruction Planner: Name, signature & date)
Comments of Coordinator of Specialisation (COS) wherever this designation exists/ CoD-F (if any)

Comments of HoD-F / HOF (if there is no HOD-F)

Signature & Date

18
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