PGDC101: Managerial Economics (Micro)

PERSPECTIVE OF THE COURSE

This course is designed to impart knowledge of the concepts and principles of
Economics, which govern the functioning of a firm/organization under different market
conditions. It further aims at enhancing the understanding capabilities of students about
macro– economic principles and decision making by business and government.

COURSE OBJECTIVES
- To make the students aware of the various economic theories and principles
- To equip them with the required tools and techniques for improving their decision
making skills.

COURSE CONTENT

MODULE ONE: INTRODUCTION TO MANAGERIAL ECONOMICS

Introduction to Economics, Kinds of Economic Decisions, Significance and applicability
of Managerial Economics in decision making, Role and responsibilities of Managerial
Economics, Economic principles relevant to managerial decision making, Opportunity
cost, Production possibility curve, Concept of increments and Margin, Discounting
principle, Theory of firm.

MODULE TWO: DEMAND ANALYSIS AND CONSUMER BEHAVIOR

Demand theory and analysis, Elasticity of Demand and its role in Managerial decision
making, Demand forecasting, Techniques of Demand forecasting, Consumers
Equilibrium, Cardinal utility approach, Indifference curve approach, Theory of revealed
preference, Consumer surplus
MODULE THREE: THEORY OF PRODUCTION AND ANALYSIS OF COST
Laws of variable proportions and Return to scale, Economies of scale, Isoquants and
Iso cost, Optimum combination of inputs, Elasticity of substitutions; Cost concepts: Kind
of costs, Short run and long run cost functions, Interrelationship of cost, Cost reduction
and cost control.

MODULE FOUR: DETERMINATION OF PRICE AND OUTPUT

Concept of Market equilibrium and Revenue curves, Characteristics of different market
structures, Price determination and firms equilibrium under perfect competition,
monopolistic competition, oligopoly and monopoly, Price discrimination, International
price discrimination and dumping, Pricing methods

MODULE FIVE: FACTOR MARKET AND FACTOR PRICING

Theories of factor pricing: wages and rent, Theories of interest and investment
decisions, Profit and profit functions.

REFERENCES
1. RitikaSinha : Managerial Economics, SBPD Publishing House
2. Damodaran Suma: Managerial Economics, Oxford University Press
3. Petersen Lewis & Jain: Managerial Economics, Pearson
4. Paul A Samuelson and William D Nordhaus : Economics, McGraw Hill
5. Geethika, Ghosh&Choudary : Managerial Economics, McGraw Hill
6. Dwivedi D.N, “Managerial Economics”, Vikas Publication
7. PindyckRubinfeld& Mehta, “Micro Economics”, Pearson