Managerial Economics Outline 2024-25 SME MBA Tech Executive

SME - IIT Jodhpur ================= Course Name : Managerial Economics Credits : 2 Type : Core Course (Graded) Session Duration : Each session is of 50 Minutes (13 Sessions per 1 Credit) Semester : I Year : 2024-25 (July-Nov 2024) Faculty : Dr Devi Prasad Dash and Dr Bhushan Praveen Jangam B...

SME - IIT Jodhpur ================= Course Name : Managerial Economics Credits : 2 Type : Core Course (Graded) Session Duration : Each session is of 50 Minutes (13 Sessions per 1 Credit) Semester : I Year : 2024-25 (July-Nov 2024) Faculty : Dr Devi Prasad Dash and Dr Bhushan Praveen Jangam Batch: MBA Tech Executive Batch 2024 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ **A Brief Overview of the Course** This course aims to help students make rational choices in their managerial positions as well as day to day life. This course will cover a vast variety of concepts pertaining to microeconomics. Topics include an overview of managerial economics; demand and supply; costs of production and the organization of the firm; market structure and pricing and output decisions and pricing strategies; and the economics of information and the role of government in the marketplace. Course Objectives ----------------- The specific objectives of the course are: 1. To familiarize the students with basic economic concepts 2. To understand the application of economic principles in managerial decisions 3. To sharpen the analytical skills of students by assimilating the knowledge of economic concepts with decision making techniques 4. To gain a deeper understanding of the behaviour of consumers and firms by using the economic tools and techniques Pedagogy -------- The pedagogy would be a mix of Lecture, Discussion, Caselets Analysis, Assignments, Quizzes and Term paper. Important Note: Evaluation Scheme ----------------- Continuous Assessment/Quizzes (2 Quizzes) 20% (= 2\*10%) Project work & Presentation 40% (25% +15%) Final Exam 40% **Important Notes/Instructions: (Details of Group Formation for Presentation and Assignment)** Each group will be of 4-5 students preferably based on academic and ethnic diversity. Individual presentation is also encouraged as well. Special Notes: -------------- Please read and prepare well in advance for case presentation & discussion in the class. Case for each session is indicated in the Session Plan. R indicates additional readings. C indicates additional cases. ### **Session Plan** +-----------------------+-----------------------+-----------------------+ | **Topic and | **Reference** (Book | **Cases** | | Sub-topics** | chapter / Page | | | | numbers from the | | | | book) | | +=======================+=======================+=======================+ | *Introduction of | **Chapter 1** | C1, C2 | | Economics: Concepts. | | | | Principles of | | | | Economics* | | | +-----------------------+-----------------------+-----------------------+ | Consumer Utility | **Chapter 2, 5 & 6** | C3, C4, C5 | | Analysis & Theory of | | | | Demand | | | +-----------------------+-----------------------+-----------------------+ | Elasticity of demand | Chapter 3, 4 & 6; | C6, C7, C8 | | | | | | Applications and | | | | Numericals of the | | | | theory of Consumer | | | | Behaviour | | | +-----------------------+-----------------------+-----------------------+ | Time element in the | **Chapter 4 & 7:** | C9, C10, C11 | | theory of price & | | | | elasticities | | | | | | | | Estimation of demand | | | +-----------------------+-----------------------+-----------------------+ | Theory of Production: | **Chapter 3 & 8:** | C12, C13, C14 | | | | | | Short & Long Run | | | | | | | | **Managerial use of | | | | Production | | | | function.** | | | | | | | | Optimization | | | +-----------------------+-----------------------+-----------------------+ | **Theory of costs** | **Chapter 8 & 9:** | C15, C16, C17, C18, | | | | C19 | | **Economies & | | | | diseconomies of | | | | scale** | | | +-----------------------+-----------------------+-----------------------+ | **Markets: Perfect | **Chapter 11** | C20, C21 | | competition.** | | | | | | | | **Application** | | | +-----------------------+-----------------------+-----------------------+ | **Imperfect | **Chapter 12 & 13** | C22, C23, C24 | | competitions -- | | | | Monopoly, | | | | monopolistic | | | | competition** | | | +-----------------------+-----------------------+-----------------------+ | **Price | **Chapter 13 and | C25, C26, C27, C28 | | discrimination under | 14:** | | | monopoly, Dumping** | | | +-----------------------+-----------------------+-----------------------+ | **Presentations by | | | | Students** | | | +-----------------------+-----------------------+-----------------------+ ***[Note:]*** Session numbers are indicative in nature. It may change depending upon the importance of the concerned topics. Topics provided here are exhaustive in nature. Depending upon the importance of the topics, it will be covered accordingly. **Table of Contents** +-----------------------+-----------------------+-----------------------+ | **Sl. No.** | **Reading** | **Case Title** | | | | | | | **No.** | | +=======================+=======================+=======================+ | 1 | C1 | Bad weather and high | | | | demand send wheat | | | | prices | | | | soaring\_Salvatore | | | | 2014\_ Micro\_example | | | | 1.1\_page 9. | +-----------------------+-----------------------+-----------------------+ | 2 | C2 | Higher alcohol prices | | | | would sharply reduce | | | | youth alcohol use and | | | | traffic deaths\_ | | | | Salvatore\_2014 5^th^ | | | | ed \_micro\_Ex. 4-2, | | | | p.88-89. | +-----------------------+-----------------------+-----------------------+ | 3 | C3 | *The Law of Demand in | | | | Perkasie, | | | | Pennysylavania\_Peter | | | | sen | | | | and Lewis (2001-4^th^ | | | | edition)\_Managerial | | | | Eco, p. 73.* | +-----------------------+-----------------------+-----------------------+ | 4 | C4 | Demand for Big Macs\_ | | | | Salvatore\_2014 5^th^ | | | | ed \_micro\_Example | | | | 5-1, p-117-118 | +-----------------------+-----------------------+-----------------------+ | 5 | C5 | *The Market Demand | | | | for Tests\_Petersen | | | | and Lewis (2001-4^th^ | | | | edition)\_Managerial | | | | Eco, p. 76-77.* | +-----------------------+-----------------------+-----------------------+ | 6 | C6 | European cars are | | | | luxuries, flour is an | | | | inferior | | | | good\_example 5.3, | | | | Salvatore, 2014, | | | | Micro, P.127-128. | +-----------------------+-----------------------+-----------------------+ | 7 | C7 | Margarine and butter | | | | are substitutes, | | | | entertainment and | | | | food are | | | | complements\_ example | | | | 5.4, Salvatore 2014, | | | | Micro, P.129-130. | +-----------------------+-----------------------+-----------------------+ | 8 | C8 | *How much tuition for | | | | college | | | | students\_Petersen | | | | and Lewis (2001- | | | | 4^th^ edition) | | | | Managerial Eco, p. | | | | 90.* | +-----------------------+-----------------------+-----------------------+ | 9 | C9 | Price elasticity for | | | | clothing increases | | | | with time\_example | | | | 5-2, Salvatore 2014, | | | | Micro, P.124-125. | +-----------------------+-----------------------+-----------------------+ | 10 | C10 | Empirical estimation | | | | of demand by | | | | regression | | | | analysis\_Appendix, | | | | Salvatore 2014, | | | | Micro, P.142-144. | +-----------------------+-----------------------+-----------------------+ | 11 | C11 | The marketing | | | | revolution with | | | | micromarketing\_Salva | | | | tore | | | | 2014, Micro, | | | | P.137-139. | +-----------------------+-----------------------+-----------------------+ | 12 | C12 | The Economics of US | | | | Farm Support | | | | Programs\_Salvatore\_ | | | | 2014\_micro\_Example | | | | 2-3, P-37-39 | +-----------------------+-----------------------+-----------------------+ | 13 | C13 | Trading traveling | | | | time for gasoline | | | | consumption on the | | | | nation's | | | | highways\_Salvatore\_ | | | | micro\_2014\_P. | | | | 191-192. | +-----------------------+-----------------------+-----------------------+ | 14 | C14 | Least-cost | | | | combination of | | | | gasoline and driving | | | | time\_Salvatore\_ | | | | micro\_2014\_P. | | | | 222-223. | +-----------------------+-----------------------+-----------------------+ | 15 | C15 | General Motors | | | | Decides Smaller is | | | | Better, Salavatore | | | | (2003), micro, p. | | | | 210. | +-----------------------+-----------------------+-----------------------+ | 16 | C16 | Output elasticity of | | | | labour and capital | | | | and returns to scale | | | | in US and Canadian | | | | manufacturing\_Salvat | | | | ore\_micro\_2014 | | | | fifth edition\_p. | | | | 208-209. | +-----------------------+-----------------------+-----------------------+ | 17 | C17 | Per-unit cost curves | | | | in corn production | | | | and in travelling | | | | Salvatore\_2014\_micr | | | | o\_p. | | | | 217-218. | +-----------------------+-----------------------+-----------------------+ | 18 | C18 | Long run Average cost | | | | curve in Electricity | | | | Generation, Salvatore | | | | (2014)\_micro\_p. | | | | 227-228. | +-----------------------+-----------------------+-----------------------+ | 19 | C19 | The minimum efficient | | | | scale in various US | | | | food industries\_ | | | | Salvatore | | | | (2014)\_micro\_p. | | | | 229-230. | +-----------------------+-----------------------+-----------------------+ | 20 | C20 | Marginal analysis in | | | | TV advertising\_ | | | | Salvator | | | | 2014\_micro\_p.12-13. | +-----------------------+-----------------------+-----------------------+ | 21 | C21 | Competition in the | | | | New York stock | | | | market\_Salvatore\_mi | | | | cro | | | | \_2014\_P. 246-247. | +-----------------------+-----------------------+-----------------------+ | 22 | C22 | New markets and new | | | | competition on the | | | | internet\_Salvatore | | | | \_micro\_2014\_P. | | | | 274. | +-----------------------+-----------------------+-----------------------+ | 23 | C23 | Credit cards, perfect | | | | completion, and high | | | | interest | | | | rates\_Petersen & | | | | Lewis (1999)\_Mang | | | | Eco\_P.324. | +-----------------------+-----------------------+-----------------------+ | 24 | C24 | Barriers to entry and | | | | monopoly by | | | | Alcoa\_Salvatore | | | | (2014)\_micro\_p. | | | | 287. | +-----------------------+-----------------------+-----------------------+ | 25 | C25 | Estimate of the | | | | social cost of | | | | monopoly in the | | | | US\_industry\_ | | | | Salvatore | | | | (2014)\_micro\_p. | | | | 303. | +-----------------------+-----------------------+-----------------------+ | 26 | C26 | Bundling in the | | | | Leasing of | | | | Movies\_Salvatore | | | | (2014)\_micro\_p. | | | | 313-314. | +-----------------------+-----------------------+-----------------------+ | | C27 | Example 11-5: | | | | Globalisation of the | | | | Automobile | | | | industry\_Salvatore, | | | | 2014\_P. 354-355. | +-----------------------+-----------------------+-----------------------+ | | C28 | Example 11-6: | | | | Globalisation of the | | | | Pharmaceutical | | | | industry\_Salvatore, | | | | 2014\_P. 357. | +-----------------------+-----------------------+-----------------------+ Note: 'C' in the second column stands for 'Case Study'. **Main Prescribed Text Book** Managerial Economics: Concepts and Applications by Christopher R Thomas and S Charles Maurice, 10^th^ Edition, 2014, The McGraw-Hill Companies. **Reference Book** 1. Dominick Salvatore, Principles of Microeconomics, 5^th^ Edition (International Version), 2014, Oxford University Press. 2. Mankiw, N. G. Principles of Microeconomics, (2007). 8^th^ Edition (South-Western Publication)