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COURSE OBJECTIVES:
1. Acquaint the students with basic principles of microeconomics and their applications in
business decision making.
2. To introduce international dimension into managerial economics to reflect the
globalization of consumer tastes, production and distribution in todays world
COURSE CONTENT
Readings
1. H. Craig Peterson & W. Cris Lewis, Sudhir K Jain (2006);
Managerial Economics; 4rd ed., Chapter -1
2. Dominic Salvatore (2012); 7th Ed., Managerial Economics:
Principles and Worldwide Applications, Chapter -1
Exercises
Terminology of Basic Concepts to be prepared by students.
Caselet Two Wheeler Industry.
Caselet on Economic and Accounting profit.
1
II 2-3 Demand Analysis: Market demand, Market Supply, Market
equilibrium, Demand concepts, Types of demand,
determinants of market demand.
Cost concepts: short run and long run cost functions, Cost-Output
Relationships, Cost of multiple products, Break-even point,
Economies of Scale-internal and external, The Learning Curve
Economics of Scope, Cost Volume Analysis-an economic perspective.
Readings
1. H. Craig Peterson & W.Cris Lewis, Sudhir K Jain(2006);
Managerial Economics; 4rd ed., Chapter -6,7
2. Dominic Salvatore (2012); 7th Ed., Managerial Economics:
Principles and Worldwide Applications, Chapter -6,7
3. Paul G. Keat & Philip K. Y. Young (2005): Managerial
Economics; 6th ed. Chapter 7&8;
Exercises:
Caselet: Call centers: Applying the production function to a service
2
in Economic analysis, Perfect and Pure Competition, Imperfect
Competition, Monopoly, Monopolistic Competition, Oligopoly: Basic
features, pricing and output decisions under different kinds of
competitive situations, Collusive (Tacit and explicit collusion
:Centralized Cartel and Market Sharing Cartel) and non - collusive
Oligopoly, Price leadership: Barometric price leader ship and
Dominant price leadership
Readings
1. H. Craig Peterson & W. Cris Lewis, Sudhir K Jain(2006);
Managerial Economics; 4rd ed., Chapter -8,9
2. Dominick Salvatore (2012); 7th Ed., Managerial Economics:
Principles and Worldwide Applications, Chapter -8,9
3. More, Pal & Gupta; Managerial Economics; 2nd Ed, Chapter-5
Tata McGraw Hill Pub. Ltd. New Delhi
V 12 Pricing Practices
Pricing of Multiple Products; Price Discrimination: Degrees of price
discrimination; Peak load pricing; Cost plus or Markup pricing; Price
Skimming; transfer pricing.
Readings
1. Dominic Salvatore (2012); 7th Ed., Managerial Economics:
Principles and Worldwide Applications, Chapter -11
2. H. Craig Peterson &W. Cris Lewis; Managerial Economics; 3rd
ed. Chapter-12
Case: The London 2012 Olympic Games, Harvard Case Study, 2010
PEDAGOGY
The teaching methodology used in this course will be a judicious mix of lectures,
numerical problems, Caselets, assignments, discussions and presentations by the students.
EVALUATION PARAMETERS
The course will be evaluated on the following basis:
3
End Term Examination: 50 Marks
Internal Examination: 50Marks
( division of marks to be decided by the course instructor)
LEARNING RESOURCES:
Recommended Readings:
1. Dominick Salvatore (2012), 7th Ed., Managerial Economics: Principles and
Worldwide Applications, Oxford University Press
2. Paul G. Keat & Philip K. Y. Young: Managerial Economics (2005), 6th ed.,
Pearson Publication
3. Managerial Economics-Text and Cases, P.L Mehta , 4th Edition, S. Chand and
sons
4. Suma Damodaran (2010), 2nd edition Oxford University Press, New Delhi
5. A. Koutsoyiannis (1979), Modem Micro Economics ; 2nd ed. Macmillan
Press, Hong Kong
6. Managerial Economics; More, Pal & Gupta: 2nd ed. Tata McGraw Hill Pub.
Ltd. New Delhi
7. Managerial Economics; Samuelson W.F. & Marks S.T; The Dryden Press 3 rd
ed.
IMPORTANT
INDIVIDUAL ASSIGNMENT
Glossary of terms to be prepared
Exercises
a) Elasticity and Market Structure
b) Production Analysis
Exercises on Caselets
GROUP ASSIGNMENT: Real life Project on Economic Analysis for a product of
choice. This project should be submitted in report form and presentations to be made as
per the schedule given.