INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD COURSE NAME: MANAGERIAL ECONOMICS PGDM, PGDM-MM & PGDM-IT TERM I (F/T: 2011-13),

, CODE: BM 1105 Faculty: Dr. Tapan Kumar Nayak Associate Professor of Economics Chairperson-PGDM Contact No: 9999613005 Email Id: tapankumar.nayak@imsgzb.com COURSE OUTLINE LEARNING BACKGROUND The managerial economic concepts are of vital importance for any business activities. The course mainly concentrates on the study of microeconomics - the branch of Economics that studies the behavior of individuals, firms and industries. At the end of the course the students will have mastered the main concepts and tools of economic analysis, will have a more formalized vision of why and how different key concepts in micro-economics are applied to any business activity. The focus of managerial economics is to enable the students to understand the behavior of Consumers, Producers in the business like environment and the different forms of market. Furthermore, this course is also aimed at discussing the role of economics in managerial decision making. It deals with micro economic issues involving households and firms, mainly in the areas of Demand and Supply; Production and Cost of Firms; Alternative objectives of firms and Price/Output Decisions by firms under varying market conditions. This course will help participants to develop critical and analytical skills to apply under different business situations. COURSE OBJECTIVE With the above background and the pedagogy, the objectives of this course are: To equip the students with a complete understanding of basic business/micro economic concepts. To use these concepts in the decision making process faced by consumers, entrepreneurs and managers.

To provide an over-view of micro economic/business environment

PEDAGOGY The course will combine lectures and case studies on micro economic concepts, Surprise Quizzes, preparation of group reports and presentations by students on related topics. Some reference textbooks have been chosen which will be providing a more intuitive introduction to the different chapters, intended to provide support particularly for those with no previous exposure to economics. Discussions in class, however, will build on the ideas presented in the books to achieve a greater degree of depth. EVALUATION CRITERIA Assignments/ Case studies/ Surprise Quiz: Group Reports and Presentations: Mid Term Exam (1 no.): End Term Examination: LECTURE PLAN: Lectures Contents Concept of managerial economics Nature, scope and importance of managerial economics Objectives of managerial economics, Suggested Readings 1. Adhikary, M.: Managerial Economics, (Ch. I, II and III). 2. Dwibedy, D. N.: Managerial Economics, (Ch. I). 3. Mehta, P. L.: Managerial Economics, (Ch. I and II). 4. Maheshwari and Varshney: Managerial Economics, (Ch. I and II). 5. Petersen, H. C. and Lewis, W. C.: Managerial Economics, (Ch. I and II). 1. Maheshwari and Varshney: Managerial Economics, (Ch. II) 10% 20% 20% 50%

1 to 4 Introduction and Basic Concepts of Managerial Economics

Distinction between traditional economics and managerial economics

5 to 9 Theory of Consumer Behavior

Demand and supply functions

Determinants and Exceptions of demand theory Elasticity of demand

Measurement, factors affecting elasticity of demand and its importance

Demand forecasting

2. Dwibedy, D. N.: Managerial Economics, (Ch. III, IV and V). 3. Petersen, H. C. and Lewis, W. C.: Managerial Economics, (Ch. III, IV and V). 4. Mehta, P. L.: Managerial Economics, (Ch. V, VI, VII and VIII). 5. Koutsoyiannis, A.: Modern Micro Economics, (Ch. II). 1. Maheshwari and Varshney: Managerial Economics, (Ch. III and IV). 2. Ahuja, H. L.: Micro Economics, (Ch. 16, 19) 3. Koutsoyiannis, A.: Modern Micro Economics, (Ch. III and IV). 4. Petersen, H. C. and Lewis, W. C.: Managerial Economics, (Ch. VI and VII). 1. Maheshwari and Varshney: Managerial Economics, (Ch. V). 2. Dwibedy, D. N.: Managerial Economics, (Ch. IX). 3. Ahuja, H. L.: Micro Economics, (Ch. IV) 4. Petersen, H. C. and Lewis, W. C.: Managerial 3

Basic cost concepts and classification

10 to 13 Theory of Cost and Production

Revenue concepts and classification

Production function with one variable factor (law of variable proportions)

Perfect competition

14 to 18 Market Structures

Monopoly

Discriminating monopoly Monopolistic competition

Oligopoly

Total, Average and Marginal Product 19 to 22 Theory of Distribution And Presentations of Group Reports

Revenue productivity

Presentation of Group Reports ASSIGNMENTS/ CASE STUDIES:

Economics, (Ch. IX and X). 5. Adhikary, M.: 1. Ahuja, H. L.: Micro Economics, (Ch. 32) 2. Baumol, W. J.: Economics: Theory and Operations Analysis, (Ch. 26). 3. Koutsoyiannis, A.: Modern Micro Economics, (Ch. 21III).

A Group assignment will be conducted by the mid of August 2011 based on the courses covered till that date. Suitable case studies and application of concerned topic in various management fields will be discussed in the class. Furthermore, there will be two surprise quizzes on the topic covered till that date. GROUP REPORTS AND PRESENTATIONS: Students need to prepare a group report on any topic related to economics (both theoretical and research oriented), which will be submitted latest by 15 th September 2011. Maximum five students are allowed in a group and 25-30 minutes time will be given to present the report. REFERENCE BOOKS 1. Adhikary, M. : Managerial Economics, KEP, Delhi 2. Ahuja, H.L.: Business Economics, Sultan Chand Publications, New Delhi 3. Bade, R. and Parkin, M.: Foundations of Microeconomics, 2nd Edition, Addison Wesley Publishing Company. 4. Baumol, W. J.: Economics: Theory and Operations Analysis, New Delhi 5. Baumol, W. J.: Business Behavior: Value and Growth, McMillan, New Delhi 6. Davis, J. R. and Chand, S. : Principles Managerial Economics, PHI, New Delhi 7. Dhingra, I. C.: Business Economics, Sultan Chand Publications, New Delhi 8. Dwibedy, D. N.: Managerial Economics, Vikas Publishing House, New Delhi 4

9. Ferguson, S. C. and Maurice, C. E.: Economic Analysis- Theory and Application, McGraw-Hill Education, New Delhi. 10. Henderson, J. M. and Quandt, R. E.: Micro Economic Theory: A mathematical Approach, TATA McGraw-Hill Edition. 11. Koutsoyiannis, A.: Modern Micro Economics, McMillan Press Limited 12. Maheshwari and Varshney: Managerial Economics 13. Mehta, P. L.: Managerial Economics Sultan Chand Publications, New Delhi 14. Petersen, H. C. and Lewis, W. C.: Managerial Economics, Prentice-Hall, India. 15. Petersen, H. C., Lewis, W. C. and Jain, S. K.: Managerial Economics, Pearson Education, India 16. Sen, A.: Microeconomics: Theory and Applications, Oxford University Press, New Delhi. 17. Varian, H. R.: Intermediate Microeconomics A Modern Approach, W. W. Norton and Company; 5th edition, 1999. SUGGESTED DAILY READINGS News Papers: 1. The Economic Times (Daily) 2. Business Standards (Daily) Journals and Magazines: 1. ICFAI Journal of Managerial Economics 2. ICFAI Journal of Applied Economics 3. ICFAI Journal of Management Research 4. Indian Journal of Economics and Business 5. Economy and Political Weekly (EPW) 6. Economic Reports (Quarterly) 7. Business World 8. Business Today