ECONOMICS FOR MANAGERS

Course Code:

EDL 102

Credit Units 6

Course Objectives:
To familiarize the students with the core of micro-economics
To equip them with the tools and techniques of economic analysis and show
them how these theoretical concepts can actually be implemented to improve
managerial decision making
Emphasis on the understanding of key economic variables at both micro and
macro level which influence the business environment in which firms operates
in both national and global perspective.
Course Contents:
Module 1: Introduction to Economic Analysis
Introduction Scarcity and Efficiency, Basic Concepts and Principles of Micro-economic
analysis Marginalism, Opportunity Cost, Discounting Time Perspective, Risk and
Uncertainty.
Module 2: Consumer Behavior
Meaning of Demand, Demand Function, Determinants of demand, Law of Demand,
Exceptions to the Law of Demand, Shift of Demand v/s Expansion or Contraction of
Demand, Demand Elasticity, Types of Elasticities, Methods of measuring elasticity and
its significance. Demand Forecasting, Supply Function, Factors affecting Supply,
Elasticity of Supply, Budget Constraint, Indifference Curves Analysis, Consumer
Equilibrium and Consumer Surplus.
Module 3: Cost and Production Analysis
Theory of Production Law of Variable Proportion Production Functions, Difference
between Returns to a Factor and Returns to Scale, Long run Isocost and Isoquants,
Marginal Rate of Technical Substitution, Optimal Input combination.
Theory of Cost Cost Functions, Various types of Costs, Relationship between AC and
MC, Long and Short Run Cost Curves, Cost and Output Relationship, Short Run and
Long Run, Economies / Dis-economies of Scale. Theory of the firm Profit
Maximizations, Break Even and Shut Down Point, Baumols Model, Marris Model.
Module 4: Market Structure Analysis
Perfect Competition, Monopoly Price Discrimination, Monopolistic Competition,
Oligopoly Mutual Interdependence, Equilibrium in Short Run and Long Run, Sweezys
Model of Kinked Demand Curve, Cournots Mode of Price Leadership, prisoners
Dilemma.

Module 5: Capital Budgeting and Risk and Uncertainty Analysis

Investment Analysis Project valuation, Capital Budgeting Techniques, Risk and
Investment Analysis Decision Tree Analysis, Concept of Behavioral Economics.
Module 6: Macro-economics Analysis
Basic Concept Circular Flow of Income and Money, National Income and Keynesian
Model, Saving and Consumption Function, Investment Multiplier, Inflation, Monetary
and Fiscal Policies, International Economics Fixed and Flexible Exchange Rates, Spot
and forward Exchange Rates, Foreign Exchange Rates, Current and Capital Account
Convertibility a case study of India.

Examination Scheme:
Component Codes
Weightage (%)

H1
10

H2
10

H3
10

Text & References:

Text:
Managerial Economics : J.R. Evans / M. Adhikary
Managerial Economics: S.K. Laroiya
Student Study Material (SSM)
References:

Managerial Economics, Gupta G S, Paul Samuel, V L Mote

Managerial Economics, Prentice Hall of India Dean Joel

Managerial Economics Mithani D M

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