1

CHRIST UNIVERSITY
DEPARTMENT OF MANAGEMENT STUDIES

COURSE PLAN

Subject : Managerial Economics
Code : BBM134
Class : I BBM
Names of the Faculty : Dr Mahesh E
Dr P Srinivasan
Prof M Xavier
Prof Santhosh Kumar P K
Hours/Week : 04
Credits : 04
Total No. of Hours : 60

Objectives:
To develop the conceptual foundations and analytical methods used in micro economics;
Familiarize the students with the basics of consumer behaviour, behaviour of firms and market
equilibrium; Analyse the market structures of perfect competition, oligopoly and monopolies;
Syllabus
Units
Topic- Break up Hrs Date Teaching
Method
Assignments Remarks





01
(10)
Unit I
Basic Concepts




02



12/06/2013
13/06/2013




Lecture
Method



Case Study
Analysis

1.1 Ten principles of economics: How
people make decisions, how people
interact and how the economy as a
whole works;
1.2 Role of observations and theory in
economics- Role of assumptions-
Role of Economic models- Wants
and resources;
02 14/06/2013
15/06/2013
Lecture
Method

1.3 Problem of choice, Production
Possibility Frontier; Opportunity
cost;
03 19/06/2013
20/06/2013
21/06/2013
Chalk Board
Explanation/
Discussion
Case Study
Analysis

1.4 Basic economic problems common to
all economies;
03 22/06/2013
26/06/2013
27/06/2013
Lecture
Method
Written
Assignment




02
(15)
Unit - II
Demand and Supply



02



28/06/2013
29/06/2013



Chalk Board
Explanation/
Discussion

2.1 Law of demand, Reasons for the
downward slope of the demand
curve, Exceptions to the law;
Changes in demand;
2.2 Elasticity of Demand- Degrees of
price elasticity with diagrams;
Factors determining price elasticity,
02 03/07/2013
04/07/2013

Chalk Board
Explanation/
Discussion


2

methods of measurement;

2.3 Income elasticity demand; Cross
elasticity demand;
02 05/07/2013
06/07/2013
Chalk Board
Explanation/
Discussion
Objective Type
Quiz through
MOODLE

2.4 Demand forecasting Methods; 03 10/07/2013
11/07/2013
12/07/2013
Chalk Board
Explanation/
Discussion
Home Work
(Problem
Solving
Questions)

2.5 Laws of supply, Changes in supply; 01 13/07/2013 Explanation/
Discussion

2.6 Consumers, Producers and the
Efficiency of the Markets:
Consumers surplus (Marshall),
Producer surplus and Market
efficiency;
03 17/07/2013
18/07/2013
19/07/2013
Chalk Board
Explanation/
Discussion
Case Study
Analysis

2.7 Externalities and Market
inefficiency- Public goods and
common resources;
02 20/07/2013
24/07/2013
Lecture
Method




03
(10)

Unit III
Theory of Consumer Choice and New
Frontiers in Microeconomics





03




25/07/2013
26/07/2013
27/07/2013



Chalk Board
Explanation/
Discussion

3.1 Cardinal utility analysis; Laws of
diminishing marginal utility;
3.2 Ordinal utility analysis
Indifference curves Properties,
consumers equilibrium,
04 31/07/2013
01/08/2013
14/08/2013
16/08/2013
Chalk Board
Explanation/
Discussion






3.3 Price, Income and Substitution
Effects;
03 17/08/2013
21/08/2013
22/08/2013
Chalk Board
Explanation/
Discussion
Objective Type
Quiz through
MOODLE




04
(10)

4.1
Unit IV
Theory of Production and Cost


03

23/08/2013
24/08/2013
28/08/2013
Chalk Board
Explanation
Method /
Discussion

Production function; Law of Variable
proportions; Laws of returns,
Economies of scale;
4.2 Producers Equilibrium with the help
of iso-quants and iso-cost lines
02 29/08/2013
30/08/2013
Chalk Board
Explanation/
Discussion

4.3 Cost function - Important cost
concepts. Short run and long r un
cost analysis (traditional theory)
02 31/08/2013
04/09/2013
Chalk Board
Explanation/
Discussion

4.4 Modern theory of cost- Long run and
short run; Revenue analysis -AR and
MR;
03 05/09/2013
06/09/2013
07/09/2013
Chalk Board
Explanation/
Discussion
Home Work
(Problem
Solving
Questions)


3






05
(15)
Unit - V
Product Pricing and Factor Pricing






04



11/09/2013
12/09/2013
13/09/2013
14/09/2013




Chalk Board
Explanation/
Discussion

5.1 Market structure
Perfect competition, Price and output
determination- Role of time element
in market price determination
5.2 Monopoly- Price and output
determination, Price discrimination
03 18/09/2013
19/09/2013
20/09/2013
Chalk Board
Explanation/
Discussion
Case Study
Analysis

5.3 Monopolistic Competition - Price
and Output determination. Selling
costs and Product differentiation
03 21/09/2013
25/09/2013
26/09/2013
Chalk Board
Explanation/
Discussion
Case Study
Analysis

5.4 Oligopoly; Price determination
(collusive pricing, price leadership)
02 27/09/2013
28/09/2013
Chalk Board
Explanation/
Discussion
Case Study
Analysis


ASSESSMENT AND EVALUATION

REFERENCES

Course Text
N. Gregory Mankiw (2012). Principles of Microeconomics, 6
th
Edition, Cengage Learning India
Recommended Reading
1. Lipsey, R.G. and K.A. Chrystal (1999), Principles of Economics, 9
th
Edition, Oxford
University Press, Oxford
2. Ramsfield, E. (1997), Micro Economics (9
th
Edition), W.W Norton and company, New
York
3. Ray, N.C. (1975), An Introduction to Microeconomics, Macmillan Company of India Ltd.
New Delhi
4. Samuelson, Paul A and William D Nordhaus (2010), Economics, 19
th
Edition, McGraw-
Hill Companies.
5. H L Ahuja (2012), Principles of Microeconomic, Latest Edition, S. Chand Ltd, New
Delhi.
6. Pindyck, Robert & Rubinfeld, Baniel (2013), Micro Economics, 8
th
Edition, Pearson
Education, USA.
7. Dominick, Salvatore (2011), Managerial Economics in a Global Economy, 7
th
Edition,
Oxford University Press.
CIA -I Mid-semester Mid Semester Examination
CIA -II 1. Group Presentation
2. Written Assignment
CIA -III 1. Objective Type Quiz through MOODLE --Consisting of 5 sets of question paper--
Each set consists of 20 multiple choice questions
2. Case Study Analysis.