SIVA SIVANI INSTITUTE OF MAGEMENT

MICRO ECONOMICS
PGDM

Term: I
Credits:2
Course Code:1102-R3CF
Batch: 2021-23
COURSE OUTLINE

COURSE DESCRIPTION
This course is intended to introduce Micro Economic Analysis to Management students. It
also aims at understanding how micro economic theories will influence the business
decisions. Students will be exposed to demand and supply analysis, forecasting techniques,
market equilibrium production, costs and different market structures and pricing strategies
to forecast business prospects.

COURSE OUTCOMES (COs)

On successful completion of the course the students can be able to:

CO1: Understand the micro economic theories and various business decisions
CO2: Demonstrate the basic concepts of microeconomics in business environment
CO3: Analyze the Microeconomic problems and its implications on business decisions
CO4: Explain appropriate business strategy using the tools of Microeconomics

COURSE CONTENT /SYLLABUS

Unit – I: Nature and Scope of Economics
Subject matter of Economics – Microeconomics, Macroeconomics and Managerial Economics,
Different Economic Decisions, Basic Concepts of Economics, Fundamental Concepts- Scarcity,
Efficiency, Opportunity Cost, Economic Profit and Accounting Profit, Objectives and Constraints
of business firms.
Unit – II: Demand & Supply Analysis
Law of Demand – Demand Function - Types of Demand – Change in Demand vs. Change in
Quantity Demanded - Types of Elasticity of Demand, Measurement of Elasticity of Demand, Price
Elasticity, Income Elasticity and Cross Elasticity, Applications of Elasticity of Demand,
Law of Supply – Supply Function - Elasticity of Supply – Implication of Elasticity of Supply –
Equilibrium Price
Unit III: Production & Cost Functions
Factors of Production, Production function, Production Function with One Variable Input and
Two Variable Inputs - Law of Returns to Scale and Iso Quants, Economies of scale and scope,
Different types of cost, Cost Curves, learning curve and Break even analysis
Unit – IV: Market Structures
Definition of Market, Different types of Market structures their features and price determination—
Perfect competition, Monopoly, Monopolistic Competition and Oligopoly
Unit-V: Consumer Behaviour and Market Analysis in Practice.
• Simulation Games
• Experimental Learning
• Market Analysis
• Calculations of elasticity
• Guest Lectures

Recommended Textbooks:
• Dominick Salvatore (2011), Managerial Economics, Seventh Edition, Oxford University
Press

Suggested Readings:
1. Geethika, Piyali Ghosh& Purba Roy Choudhury- Managerial Economics, 2014, 2nd
Edition, Tata Mc Graw Hill Education Private Limited, New Delhi.

2. Samuelson PA& Nordhaus WD, 2003, Economics, Tata Mc Graw-Hill Publishing Co.
Ltd., New Delhi 8th Ed

3. Dwivedi. D.N, Managerial Economics, Vikas Publishing House Pvt Ltd,Noida,7th

Edition,2014

Grading & Deliverables:

Assessment will be through homework, in class quizzes, a mid-term exam, and a final exam. The
total grade for the course will be distributed across the various components as follows:
Components Weight
HomeWorks 20%
Class Quizzes 10%
Mid Term 20%
End Term 50%