Institute of Management Technology, Ghaziabad Managerial Economics Objective of the Course: The main objective is to develop decision making

capacity in students. Managerial Economics can be viewed as an application of that part of micro economics that focuses on topics like demand, production, cost, pricing and market structure. Understanding these principle will help to develop a rational decision making. Managerial Economics sharpens the analytical framework that the executive must bring to bear on managerial decisions. In general Managerial Economics will help managers to ensure that resources are allocated efficiently within the firm and that the firm responds appropriately to changes in the Economic Environment.

LECTURE PLAN
Module I. Introduction Topics
1. Introduction to economics, nature and scope of Managerial Economics, Economics and other disciplines. 2. Tools and techniques of decision making. 1. Demand for a commodity, Price Elasticity of demand, Income elasticity, Cross elasticity, uses of different concepts elasticity in business decisions.

Readings
Ch.1 text book & hand outs Ch.2 text book Ch.3 text book

Sessions 1-2

II. Demand Theory

3-5

III. Demand

Estimation & Forecasting

1. Demand Estimation: Approaches to Ch.4, text book demand estimation, Introduction to Regression analysis, Simple Regression and Multiple Regression, problems in Regression Analysis, Demand Estimation by Regression Analysis. 2. Demand Forecasting Ch.5, text book

6-8

9-10 11-13

IV. Production 1. Production function, Production Ch.6, text book function with one variable input, Theory and Production function with two variable Estimation

V. Cost Theory and Estimation

VI. Market Structure VII. Pricing

inputs, optimal combination of inputs, Returns to scale, Empirical production functions 1. Nature of costs, short-run cost Ch.7, text book 14-15 functions, long-run cost functions, economies of scale, Learning curve, Cost-Volume-profit Analysis, Empirical cost functions 1. Perfect Competition Ch. 8-10, text book 16-18 2. Monopoly 3. Monopolistic Competition 4. Oligopoly and Game Theory 1. Pricing of multiple products, Price Ch.11, text book 19-20

Practices

Discrimination, Pricing in practice

Pedagogy: Class room lectures to explain fundamental concepts and theories of managerial economics. Real world business examples and cases/presentations will be used to illustrate the same. Evaluation: 1) Quiz (4x 5 marks each) = 20 2) Midterm test = 20 3) Assignment/project/presentation / Class Participation = 20 4) End Term = 40 Total = 100 marks Text Book: Managerial Economics- Principles and Worldwide Applications, by D. Salvatore, Sixth Edition, OUP, 2008 Other References:
1. 2. 3. 4.

Mansfield Edwin, Allen Bruce, and Doherty Neil A., Managerial Economics, W.W. Norton & Company, New York, 2002 Truett & Truett, Managerial Economics, Wiley Publication. Petersen Craig H. Cris Lewis and S.K. Jain, Managerial Economics, Pearson, 2007 Thomas, R. Christopher and Maurice, S. Charles, Managerial Economics, Macgraw-Hill, 2005