Managerial Economics

COURSE OUTLINE COURSE CODE: MBA PROGRAM SEMESTER I YEAR - 1 Instructor: Mrs. Talluri Jhansi E-mail: jahansi@gmail.com COURSE DESCRIPTION Managerial Economics is the application of economic theory and methodology to managerial decision making problems within various organizational settings such as a firm or a government agency. The emphasis in this course will be on demand analysis and estimation, production and cost analysis under different market conditions, forecasting and decision making under uncertainty. Students taking this course are expected to have had some exposure to economics and be comfortable with basic algebra. Some knowledge of calculus would also be helpful although not necessary. COURSE PURPOSE: This course seeks to integrate various principles and concepts from different fields of economics with typical problems of managerial decision making. COURSE OBJECTIVE In today's dynamic economic environment, effective managerial decision

making requires timely and efficient use of information. The purpose of this course is to provide students with a basic understanding of the economic theory and analytical tools that can be used in decision making problems. At the end of this course students should be able to :

1. Apply demand theory to establish elasticity of demand and perform demand forecast. 2. Use game theory to decide on business strategies. 3. Apply production theory to manage production. DETAILED COURSE DESCRIPTION Chapter 1 1.1 1.2 1.3 1.4 Chapter 2 2.1 2.2 2.3 2.4 2.5 2.6 Chapter 3 3.1 3.2 3.3 3.4 3.5 Chapter 4 4.1 4.2 4.3 4.4 4.5 Chapter 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Nature, scope and methods of managerial economics Introduction Definition and relationships with other disciplines Elements of managerial economics 11 Methods & Scientific theories The theory of the firm Introduction The nature of the firm The basic profit-maximizing model Measurement of profit Risk and uncertainty Multiproduct strategies DEMAND THEORY ANALYSIS Introduction Definition and representation Consumer theory Factors determining demand Elasticity Demand estimation Introduction Methods Model specification Data collection Forecasting Estimation of Production and Cost Function Introduction Basic terms and definitions The short run The long run Importance of costs for decision-making Short-run cost behaviour Long-run cost behaviour

Chapter 6 6.1 6.2 6.3 Chapter 7 7.1 7.2 7.3 7.4 7.5 Chapter 8 8.1 8.2 8.3 8.4 8.5 Chapter 9

Game Theory Introduction, Nature and scope of game theory Static games Dynamic games Market Structure Introduction, Characteristics of markets Perfect competition Monopoly Monopolistic competition Oligopoly Pricing strategy Introduction Competitive advantage Market positioning, segmentation and targeting Price discrimination Multiproduct pricing Role of Government

Teaching Methodology 1. Lectures 2. Case Analysis 3. Group Discussions 4. Guest Speakers

Instructional Materials These will include: Tablet, Smart board, LCD projector & Computers, Flipcharts, Televisions, Videos.

Course Evaluation CATs / Assignment / Presentation Final Examination Grading Policy: Assignments Class Presentation Final Exam Course Text books 1. Wilkinson.N. (2005), Managerial Economics A problem Solving Approach, Cambridge Press (ISBN: 0-521-52625-6). 2. Burton. G. George C. and Stuart. W (2002), Quantitative Methods for Business and Economics. 2nd Edition, Pearson Education, Essex. 3. Douglas E.J. (1992). Managerial Economics: Analysis and Strategy, New Jersey : Prentice Hall International Reference Text Books 1. Craig. P. & Chris. L. (1999). Managerial Economics, 4th Edition, Prentice Hall. 2. Salvatore, D. (2004). Managerial Economics in a Global Economy with Economic Applications Card, 5th Edition, South-Western (Thompson) ISBN: 0-324-17187-0 3. Hill. S. (1989). Managerial Economics : Analysis of Business Decisions, London, McMillan. 20% 20% 60%

Course Journals 1. Journal of Economics 2. Journal of Finance and Economics 3. Journal of Economic Research Reference Journals 1. Journal of Applied Economics 2. Journal of Economic Development 3. Journal of Business Economics