Academic Year 2021-22 Trimester I

Course Title Managerial Economics Course Code 21PT12

Course Facilitator Dr. V.Pradeep Credits 3

Total no. of
E-Mail pradeep@tsm.ac.in 24
sessions
COURSE PLAN – PGDM

COURSE OBJECTIVES:
The objective of this course is to equip students with the power of microeconomics for understanding how
the real world operates – businesses as producers and households/individuals as consumers, and how their
decisions interact with each other.
This course is designed to train students in economic way of thinking to
1. Understand consumer behavior – how consumers make purchase decisions.
2. Understand firm decision making – how firms decide optimal output and profits.
3. Learn about market structures - (monopoly, oligopoly and a competitive market)
4. Analyse how market structures influence pricing outcomes, producer profits and consumer welfare.
5. Learn when government intervention can and cannot improve the market outcomes.
6. Apply economic principles to solve policy, personal and business questions.

PROGRAMME OUTCOMES (POs)

1. Apply knowledge of management theories and practices to solve business problems. 
2. Foster Analytical and critical thinking abilities for data-based decision making. 
3. Ability to develop value-based leadership ability. 
4. Ability to understand, analyse and communicate global, economic, legal, and ethical aspects of business. 
5. Ability to lead themselves and others in the achievement of organizational goals, contributing effectively
to a team environment. 

COURSE OUTCOMES (COs)

In addition to the course objectives mentioned above, students should expect to develop the following by
end of the course.
1. Understanding and application of functional knowledge in business. (PO 1 and PO 4)
2. Identify/understand ethical dilemmas and demonstrate ethical behaviour. (PO 2 and PO 5)
3. Develop decision making skills through problem solving using qualitative analysis and quantitative
methods. (PO 1 and PO 2)
4. Effective communication and interpersonal skills. (PO 3 and PO 5)

Course Content:
Module I: Foundation of Economics
What is economics-Three key economic questions- Basic postulates- Economic terms and concepts-
Economic and noneconomic goals of firm- The circular flow of economic activity

Module II: Demand, Supply, and Market Equilibrium

Theory of demand and supply - Elasticity of demand (Price, income, cross and advertisement)- Elasticity of
supply-The theory of consumer choice-Demand forecasting techniques

Module III: Theory of Production and Cost

Estimation of production function-Short run and long run production function- Terms in costs- Short run
and long run cost function- learning curve- Economies of scale and scope

Module IV: Pricing and output decisions in Various Market Structure

Perfect competition-Monopoly-Monopolistic Competition-Oligopoly- Break-Even Analysis

Module V: Pricing Practices, Game theory and Asymmetric Information

Cartel arrangements- Price leadership-Price discrimination- Non-marginal, multiproduct and transfer
pricing-Game theory- Markets with Asymmetric information

Textbook : Managerial Economics by Geetika et al., 3rd Edition, Tata Mcgraw Hill.
Additional Readings: Newspaper - www.livemint.com
Principles of Economics by Gregory Mankiw.

Evaluation Descriptions Marks Learning

parameter Objective
Group Group debates 10 1&2
Assignment
Quiz Quiz conducted through Moodle after mid-term 15 1&2
examination
Mid term A midterm exam (standard format) will be conducted. 30 1&2
Students performance will carry 30% weightage for the
internals
End term A written exam will be conducted at the end of the 40 1&2
(Exam for 100 trimester (Standard format) for 100 marks. This will carry
marks) 40% of the evaluation marks
Attendance Rubrics as given 5
Total marks 100
SESSION PLAN
Session Session Objectives
Dates Topic Reading Material
No. (LO If applicable)
Module I: Preliminaries in Economics
What is economics-Three key Refer the text
economic questions- Basic book Managerial
postulates- Economic terms and Economics and
1 concepts-Economic and CO 1 & CO 2 Principles of
09.08.2021
noneconomic goals of firm- The Economics.
circular flow of economic activity (Applicable to all
chapters)
Module II: Demand, Supply, and Market Equilibrium
11.08.2021 Demand and Supply
2-3 CO 1 & CO 3
12.08.2021 Elasticity of demand
4 13.08.2021 Price and Income elasticity CO 1 & CO 3
5 16.08.2021 Cross and Advertisement elasticity CO 1 & CO 3
6
18.08.2021 Demand forecasting techniques
CO 1 & CO 3

19.08.2021 Utility
7 CO 1 & CO 3
20.08.2021 CO 1 & CO 3
8 Budget Line
23.08.2021 CO 1 & CO 3
9 Demand estimation and forecasting

24.08.2021 CO 1 & CO 3
10 Elasticity of supply
25-08-2021 CO 1 & CO 3
11 Market demand curve
Module III: Theory of Production and Cost

12 27-08-2021 Estimation of production function CO 1 & CO 3

CO 1 & CO 3
Short run and long run production
13 06.09.2021
function
Terms in costs- Short run and long CO 1 & CO 3
14 08.09.2021
run cost function
 Session Session Objectives
Dates Topic Reading Material
No. (LO If applicable)
Module IV: Pricing and Output Decisions in Various Market Structure

09.09.2021
15 Perfect competition CO 1 & CO 3

16 13-09-2021 Monopoly CO 1 & CO 3

Monopolistic competition CO 1 & CO 3

17 15.09.2021

17.09.2021 CO 1 & CO 3
18 Oligopoly

Module V: Pricing Practices, Game theory and Asymmetric Information

19 20.09.2021 Break-Even Analysis CO 1 & CO 3

23.09.2021 Cartel arrangements- Price CO 1 & CO 3

20
leadership -Price discrimination

CO 1 & CO 3
24.09.2021 Non-marginal, multiproduct and
21
transfer pricing

27.09.2021 CO 1 & CO 3
22 Game theory

29.09.2021 Markets with Asymmetric

23 CO 1 & CO 3
information

01.10.2021 CO 1, CO 2 & CO 4
24 Discussion and recap

Dr.V.Pradeep Prof. Murali Sambasivan

Signature of Faculty-in-charge Signature of the Director