Managerial Economics.

Managerial Economics PG 105

3 III The primary objective of this course is to acquaint the students with concepts and techniques used in Economics and to enable them to apply the knowledge in business decisions making. Emphasis is given to changes in the nature of business firms, in the context of Management of Services and Globalization. Basic concepts of management, economics and finance.

1. 2.

Introduction, An overview- Definition, Nature and Scope of Managerial Economics Consumer Behaviour. Theories of demand and Law of Supply. Consumer Preferences and consumers Surplus. Demand Forecasting. 3. The theory of the firm. The Objectives and value of the Firm. Constraints on the Operation of the Firm. Limitations of the Theory of the Firm. 4. The Nature and Functions of Profits. Business versus Economic Profit. Functions of Profit. Theories of Profit. 5. The Basics of Demand, Supply and Equilibrium. Shifts in the Demand Curve and Equilibrium. Shifts in the Supply Curve and Equilibrium. 6. Behind the Market Demand Curve- the consumers tastes: Indifference curves. Consumers Constraint: The Budget Line. The consumers Equilibrium. 7. Methods of Expressing Economic Relationships. Total, Average, and Marginal Relationships. 8. Total, Average, and Marginal Cost concepts, and curves. 9. Linkages between Cost, Revenue, and output through Optimization: Break even Analysis, PV Ratio, cost and learning curves. 10. Optimization Analysis. Profit Maximization by the Total Revenue and Total Cost Approach. 11. Management Tools for Optimization: Benchmarking, Total Quality Management, Reengineering. 12. Other Management Tools for Optimization. Internal Assessment : 60%, End Term Assessment: 40% Text Book Managerial Economics, Principles and Worldwide Applications, by Dominick Salvatore 6 th Edition, Oxford University Press. Other Reading Managerial Economics, by Geetika, Piyali Ghosh, & Purba Roy Choudhury, 2nd Edition, Tata McGraw Hill Education Pvt Ltd. Managerial Economics, by Suma Damodaran, 2nd Edition, Oxford University Press. Managerial Economics, Dr. Jaswinder Singh, & Kogent Learning Solutions Inc, 1st Edition, Dreamtech Press.

Managerial Economics.
MEASUREMENT OF LEARNING OUTCOMES Case Analysis and Presentation-2 (group) 15% Assignment and Discussion (Individual) 25% Real-life Valuation Project (group) 20% End-term exam 40% Total 100% DETAILED SESSION PLAN (Tentative and to be completed, given on the next page)Page 2 &3

Managerial Economics.

Session1

Topic / Coverage

Prior Reading

In-class Activities, Problems and Cases3 Class discussion Class discussion Case let-What determines Demand. Class discussion Students presentation. of the case-Milestone on the Road to the Theory of Demand and supply.

Introduction nature and scope of Managerial Economics Buyer Side of the Market. Demand Function Types of Demand and law of Demand Sellers side of the Market-Law of Supply Consumers Preference, consumer behaviour and consumers surplus indifference curves Demand forecasting

TB-Ch1

TB-Ch3

TB-Ch3

4 5 -6

TB-Ch1, TB- CH 1+ 3.

TB-Ch5 ,

Class Discussion. Theory of Firms Theory of the Firm. Objectives and Value of the Firm. Constraints and Limitations of the Nature & Functions of Profit Theories of Profit. TB-ch 6. Class discussion and Quiz.

8-9

10

TB- ch1

Assignments.

Managerial Economics.

Managerial Economics.

11- 12 13.

14.

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16. 17.

Market Structure and equilibrium Methods of expressing economic relationshipaverage, Marginal and total relationship Total, marginal, average cost concepts /curves Linkage between cost, revenue and output through Optimization Break- even analysis,PVRatio Operating Leverage Management tools for Optimization Bench marking, TQM, Reengineering Other tools of Optimization.

Class discussion. TB ch 2

Class discussion

handout

TB ch8

TB- Ch 2 +4.

Class discussion.

TB-ch 7 TB Ch7.

Class discussion. Case study. Case of a small fast food outlet.

Class discussion.

18-19.

TB ch2. Hand outs.

20.

TB- Ch2.

presentations