Lovely Professional University,Punjab

Format For Instruction Plan [for Courses with Lectures and Tutorials

Course No ECO515

Cours Title MANAGERIAL ECONOMICS

Course Planner 14120 :: Sumit Goyal

Lectures Tutorial Practical Credits 4 1 0 5

Text Book:

1 Geetika, Ghosh Piyali, Purba Roy Choudhury, Managerial economics, Tata Mcgraw Hill, New Delhi, 2008

Other Specific Book:

2 1. Dominick Salvatore, Ravikesh Srivastava, Managerial Economics: Principles and Worldwide Applications, Oxford University Press, 2009 3 Hirschey, Mark, Economics for Managers, South Western Cengage Learning, 2008 4 Shapiro, Edward, Macro Economics, Galgotia Publications, 2006 5 4. Thomas Christopher R., and Maurice S. Charles, Managerial Economics Concepts and Applications, 8th Edition, McGraw Hills, 2006 6 H.L. Ahuja, Advanced Economic analysis, S.Chand & Co. Ltd, New Delhi Tata

Other Reading Sr No Jouranls atricles as compulsary readings (specific articles, Complete reference) 7 R&D Collaboration Networks in Mixed Oligopoly :http://proquest.umi.com/pqdweb? index=0&did=2078299691&SrchMode=1&sid=12&Fmt=6&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1279695148&clientId=129893 8 Regional monopoly and interregional and intraregional competition :The parallel trade in coca cola between shanghai and Hangzhou in China:http://proquest.umi.com/pqdweb?index=0&did=1011328921&SrchMod 9 Price Discrimination in input markets:http://proquest.umi.com/pqdweb? index=0&did=1639644681&SrchMode=1&sid=15&Fmt=6&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1279696091&clientId=129893 10 Car wars: A global report on Auto Industry:http://proquest.umi.com/pqdweb? index=18&did=850478&SrchMode=1&sid=16&Fmt=6&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1279696335&clientId=129893

Approved for Spring Session 2010-11

11 Why Is a Financial Crisis Important? The Significance of the Relaxation of the Assumption of Perfect Competition:http://proquest.umi.com/pqdweb? index=3&did=1907181191&SrchMode=1&sid=17&Fmt=6&VInst=PRO Relevant Websites Sr. No. (Web adress) (only if relevant to the courses) 12 www.economics-ejournal.org 13 www.worldbank.org 14 www.imf.org 15 www.berkeleymath.com/BerkeleyJournal.aspx 16 http://mitworld.mit.edu 17 http://ocw.mit.edu/OcwWeb/Economics/14-01Fall2007/DownloadthisCourse/index.htm Salient Features various policy papers in economics Global current development papers Debates on global problems and issues Published Papers of Kellogg School of Management Videos from MIT on various economic issues An insight into Micro Economic theory ,Notes of MIT for undergraduate course

18 http://economics.about.com/od/microeconomics/Microeconomi Provide detail regarding the micro economic concepts cs_Resources.htm 19 http://www.economywatch.com/indianeconomy/ 20 http://www.egwald.ca/economics/productionfunctions.php 21 http://economics.fundamentalfinance.com/micro_atc_mc.php 22 http://library.thinkquest.org/C004323/low/micro2.html 23 http://www.jaytownley.com/the-bicycle-industry-competition An insight into the Indian economy provides detail regarding the use of cob Douglas production function It explains the concepts of cost and cost analysis It explains the different forms of market provides the case study of perfect market

24 http://tutor2u.net/economics/content/topics/competition/compe It provides the detail of perfect market in short and long run tition.htm 25 http://dlsu-xy.blogspot.com/2004/07/monopolistic-competition- Article-Monopolistic competition and cases and-cases.html 26 http://www.amosweb.com/cgi-bin/awb_nav.pl? s=wpd&c=dsp&k=short-run+production+analysis Information about short run production analysis

Detailed Plan For Lectures

Week Number Lecture Number Lecture Topic Chapters/Sections of Homework to be Assigned Pedagogical tool Textbook/other to students Demonstration/case reference study/images/anmatio n ctc. planned

Approved for Spring Session 2010-11

Part 1
Week 1 Lecture 1 Introduction to Managerial Economics; Concepts ->Reference :2,Ch-1 ->Reference :5,Ch-1 ->Reference :2,Ch-1 ->Reference :3,Ch-1 ->Reference :1,Ch-1 Page No-4 ->Reference :3,Ch-1 ->Reference :2,Ch-3 ->Reference :3,Ch-3 ->Reference :5,Ch-2 ->Reference :1,ch-3 page 62-64 Book :1,Ch.3 & 4 HomeWork 1 Allocation ->Reference :1,Ch-3 ->Reference :2,Ch-3 & ch-4 ->Reference :3,Ch-3 Case2: Is coca-cola the perfect business? p-19/3 Video 1 Case1:Managerial ethics Book 3, Page 4

Lecture 2

Techniques and Scope of Managerial Economics

Lecture 3 Lecture 4

Role of business in society Market demand and supply:Basis for demand

Week 2

Lecture 5

Direct and Derived demand; market equilibrium, application of demand analysis for business managers

Case 3: Spreadsheet analysis of demand and supply for Sunbest orange juice. Book 3, P.88 Video2

Lecture 6

Consumer behavior: Utility analysis

->Reference :3,Ch-4 ->Reference :5,Ch-5 ->Reference :1,ch-4 page 91 ->Reference :1,Ch-4 ->Reference :3,Ch-4 ->Reference :5,Ch-4

Lecture 7

Consumer behavior: Utility analysis

Case4: Managerial application: Odd numbered Pricing riddle. Boo 3,P.97

Lecture 8

Indifference curves: Introduction, Properties

->Reference :3,Ch-4 ->Reference :5,Ch-5 ->Reference :1,ch-4 page 99-105 ->Reference :1,ch 4 ->Reference :3,ch 4 ->Reference :5,ch 5

Week 3

Lecture 9

Indifference curves:Introduction and properties

Approved for Spring Session 2010-11

Week 3

Lecture 10

Indifference curves: Derivations of demand curve and their applications; comparison with utility analysis

->Reference :3,ch-4 ->Reference :5,ch-5

Term Paper 1 Allocation

Case 5: Managerial application: Relatioship marketing. Book 3, P.105

Lecture 11

Price, income and cross elasticities of demand and their applications.

->Reference :3,ch-5 ->Reference :5,ch-6 ->Reference :1,ch-5 page 117 ->Reference :1,ch-5 ->Reference :3,ch-5 ->Reference :5,ch-6

HomeWork 1 Submission

Lecture 12

Price, income and cross elasticities of demand and their applications.

HomeWork 2 Allocation

Case 6: Optimal level of advertising for CSI,Inc.Book3 P.158 Case 9: Why is Tracking consumer demand so tough? Book3 P.125

Week 4

Lecture 13

Demand curves and consumer surplus

->Reference :3,ch-4

Part 2
Week 4 Lecture 14 Production theory: Production function with one variable factor; optimal use of the variable input ->Reference :2,ch-6 ->Reference :3,ch-8 ->Reference :5,ch-16 ->Reference :1,ch-7 page 253 ->Reference :1,ch-7 ->Reference :2,ch-6 ->Reference :3,ch-8 ->Reference :5,ch-16

Lecture 15

Production theory: Production function with two variable factors

Lecture 16

Production Isoquants,economic region of production and marginal rate of technical substitution

Week 5

Lecture 17

Total production, Marginal production and Average Production curve

->Reference :1,ch-7 ->Reference :2,ch-6 ->Reference :3,ch-8 ->Reference :5,ch-16 ->Reference :3,ch-8 ->Reference :5,ch-9 HomeWork 2 Submission

Lecture 18

Law of diminishing returns to a Factor

Approved for Spring Session 2010-11

Week 5

Lecture 19

Input combination choice

->Reference :1,ch-7 ->Reference :2,ch-6 ->Reference :3,ch-8

Case 10: Employee productivity among the largest S and P 500 firms. Book 3, P.272

Lecture 20

Returns to scale

->Reference :2,ch-7 ->Reference :3,ch-9 ->Reference :5,ch-9 ->Reference :20, ->Reference :1,ch-8 page 215 ->Reference :1,ch-8 ->Reference :2,ch-7 ->Reference :3,ch-9 ->Reference :5,ch-9 Case 11: Estimating the costs of nursing care for regional Hospitals. Book 3, P.315 ->Reference :3,ch-9 ->Reference :1,ch-8 ->Reference :5,ch-21 ->Reference :10, ->Reference :2,ch-8 ->Reference :3,ch-10 ->Reference :5,ch-15 ->Reference :1,ch-9 ->Reference :1,ch-9 page 253 ->Reference :2,ch-8 ->Reference :3,ch-10 ->Reference :5,ch-11 Case 12: Profitability effects of firm size for DJLA companies. Book 3, P.341 Quiz 1

Week 6

Lecture 21

Cost Analysis

Lecture 22

Types of Costs

Lecture 23 Lecture 24 Week 7 Lecture 25

Short run Cost Curves and their implications Long run cost curves and their implications in planning Economics of scope

Lecture 26

Revenue analysis: types of revenue curves

Lecture 27

Types of revenue curves and their applications

Approved for Spring Session 2010-11

Week 7

Lecture 28

Revision

MID-TERM Part 3
Week 8 Lecture 29 Market structure: Perfect competition; assumptions and equilibrium in short period Price and output determination in perfect competition-long period ->Reference :2,ch-8 ->Reference :3,ch-12 ->Reference :5,ch-12 ->Reference :3,ch-12 ->Reference :5,ch-12 ->Reference :1,ch-10 page 274 ->Reference :2,ch-8 ->Reference :3,ch-12 ->Reference :1,ch-10 HomeWork 3 Allocation Case 13: Effect of R and D on Tobin q. Book 3, P.418

Lecture 30

Lecture 31

Competitive market supply Curve and market equilibrium

Lecture 32

Imperfect competition: Monopoly , features

->Reference :2,ch-8 ->Reference :5,ch-15 ->Reference :1,ch-10 ->Reference :2,ch.15 ->Reference :2,ch-8 ->Reference :3,ch-13 ->Reference :5,ch-12 ->Reference :1,ch-11

Week 9

Lecture 33 Lecture 34

Price and output decisions of monopoly Social cost and benefits of Monopoly

Lecture 35

Price discrimination

Lecture 36

Dumping

->Reference :2,ch-8 ->Reference :3,ch-13 ->Reference :5,ch-13 ->Reference :1,ch-12 ->Reference :3,ch-13 ->Reference :5,ch-13 ->Reference :1,ch-12

HomeWork 3 Submission

Week 10

Lecture 37

Monopolistic competition: Features

Case 14: Market structure Analysis at Columbia Drug Stores,Inc. Book 3, P.459

Lecture 38

Price and Output decisions-Short & Long Run

->Reference :2,ch-8 ->Reference :3,ch-13 ->Reference :1,ch-12

Approved for Spring Session 2010-11

Week 10

Lecture 39

Oligopoly: features;

->Reference :1,ch-16 page 433

HomeWork 4 Allocation

Part 4
Week 10 Week 11 Lecture 40 Lecture 41 Lecture 42 Lecture 43 Lecture 44 Week 12 Lecture 45 Lecture 46 Lecture 47 Lecture 48 Week 13 Lecture 49 Lecture 50 Lecture 51 Lecture 52 Collusions Cartels(Introductory) Kinked demand curve National income: concepts National income: concepts Methods of measuring national income-Product method Methods of measuring national income-Income method Uses of national income data Difficulties in measurement of national income circular flow of income in 2 sector circular flow of income in 3 sector circular flow of income in 4 sector Revision and doubt clearing ->Reference :1,ch-16 Quiz 2 ->Reference :1,Ch-16 HomeWork 4 Submission Term Paper 1 Submission ->Reference :1,Ch-16 ->Reference :1,Ch-16

Spill Over
Week 14 Lecture 53 Regional monopoly and interregional and ->Reference :8, intraregional competition :The parallel trade in coca cola between shanghai and Hangzhou in China Mixed oligopoly Monopolistic Competition and Cases ->Reference :2,ch-8 ->Reference :7,ch-8 ->Reference :3,ch-13 ->Reference :2,ch-8 ->Reference :5,ch-12 ->Reference :1,ch.6 ->Reference :2,ch.8 ->Reference :4,ch.8 ->Reference :3,ch8 ->Reference :2,ch 6

Lecture 54 Lecture 55

Lecture 56

Short run production analysis

Approved for Spring Session 2010-11

Details of homework and case studies

Homework No. Homework 1 Homework 2 Homework 3 Topic of the Homework Nature of homework (group/individuals/field work

Each student will be given 3 or 4 analytical and practical questions from the basic concepts of Managerial Individual Economics i.e. demand and supply analysis, consumer behaviour, elasticity of demand etc. Case based presentations Each student will be given 3 or 4 analytical and practical questions from the different market forms, revenue concepts , production function and cost function ,price discrimination and dumping etc. Students will be given analytical and practical questions on price and output determination of various markets such as monopoly, monopolistic competition, oligopoly and perfect competition. Group Individual

Homework 4

Individual

Scheme for CA:out of 100*

Component Homework Term Paper Quiz Frequency 3 1 2 Total :Out Of 4 Each Marks Total Marks 15 25 15 55 45 25 30 100

* In ENG courses wherever the total exceeds 100, consider x best out of y components of CA, as explained in teacher's guide available on the UMS List of suggested topics for term paper[at least 15] (Student to spend about 15 hrs on any one specified term paper) Sr. No. Topic 1 Role of advertisement in monopolistic market formation 2 Prices of primary commodities and their impact on indian primary exports 3 Inflationary incidence on consumers Equilibrium. 4 Government interventions and creation of monopolies 5 Dumping: Boon or Bane 6 Role of Entry barrier in creation of Monopoly 7 Telecommunication Sector A Case of Monopolistic Competition 8 Approved for Spring Session 2010-11

8 Impact of Direct Tax on Consumer Equilibrium 9 Impact of Indirect Tax on Consumer Equilibrium 10 Admistrated prices and open market prices: Analyze using ICs 11 Price Discrimination: Optimum Utilisation of resources or way of market penetration 12 Decreasing Cost Industry and Business Process Outsourcing 13 Is Dumping Illegal? Comment with authentic view points. 14 OPEC - A form of Cartel 15 Comparative decision making of central planned economies and free market economies 16 Factors affecting demand for packed food items in India and what are the future prospects of packed food items 17 Economic difficulties being faced by discount supermarket chain. Reliance fresh. 18 Measurement of Monopoly in Indian Railways

Plan for Tutorial: (Please do not use these time slots for syllabus coverage)
Tutorial No. Lecture Topic Type of pedagogical tool(s) planned (case analysis,problem solving test,role play,business game etc)

Tutorial 1 Tutorial 2 Tutorial 3 Tutorial 4 Tutorial 5 Tutorial 6 Tutorial 7

Techniques and Scope of Managerial Economics Demand analysis Equilibrium price and quantity Elasticity of demand, how can it be used by businesses? Does money buy happiness : Utility analysis Current issues of economics Term paper review

Doubt clearing session Case analysis Role play,case based presentation Role play Role play,case bsed presentation class discussion Discussion on term paper

After Mid-Term
Tutorial 8 Tutorial 9 Tutorial 10 Tutorial 11 9 Market Structures: Perfect Competition v/s monopoly Application of various firms to the type of market Perfect competition Term paper review Class discussion Business game Test Discussion on term paper Approved for Spring Session 2010-11

Tutorial 12 Tutorial 13

Monopoly Cost Benefit Analysis

Role play,Presentation Problem solving

10

Approved for Spring Session 2010-11