MBA Course Outline

Batch Year 2023-25

Academic Term
Term I √ Term II Term III
Acad. year 2023-24 Term IV Term V Term VI
Please tick mark the appropriate “Term”

Course Area Economics and Public Policy Core √ Elective

Title of the
Course
Microeconomics for Managers Course Code MIE

Course Pradyumna Dash 3

No. of Teaching
Faculty Rashmi Shukla
Faculty Members
Name Ketan Reddy
Please mention the details of faculty if No. of Teaching Faculty Members is more than 1.
Name of other pradyumna@iimraipur.ac.in
Faculty Email Id rashmishukla@iimraipur.ac.in
Member preddy@iimraipur.ac.in

Course Revision Record

Version Version Date Recommendation

5 May 31, 2023
In case, no version records available, please mention N/A. Please attach recommendation separately if any .

Credits 1 Contact 30 Learning 60-75 hours Faculty Thursday

Hours Hours Meeting 4-5 PM
Hours
Please fill all the columns.

Contact Details of Course Dr. Pradyumna Dash: 0771- 2474628

Faculty Dr. Rashmi Shukla 0771- 2474621
Dr. Ketan Reddy 0771-2474691
Course email pradyumna@iimraipur.ac.in / rashmishukla@iimraipur.ac.in /
preddy@iimraipur.ac.in

Course Description

Course Economics is the study of how people make choices/decisions in the presence of scarce
Overview resources. Every decision in personal and professional life involves a trade-off because by
(200 words) making one choice, another choice is given up due to scarcity of resources. In a firm, a manager's
task is to allocate scarce resources to achieve a goal. A good understanding of microeconomics
is vital for managerial decision making and for understanding how a modern economy function.
Course must be aligned with a strategic objective of the program (Refer the last page)

Course
Objective / 1.To understand how microeconomics can be used as a practical tool in managerial decision-
Learning making process.
Objective 2. To equip participants with intermediate level economic concepts and tools of analysis to
(200 words)
develop critical thinking and analytical skills to apply under different business situations.
Learning objectives must be aligned with course outcomes of the course

Prerequisites/
Co-requisites
 MBA Course Outline

Teaching It is basically a theoretical course. All sessions are lecture based. Applications and cases studies
Methods are discussed to reinforce the theoretical understanding of concepts

Learning Outcomes
Expected Learning Outcomes and Associated Measures
At the end of the course, students is expected to accomplish the following course learning outcomes (CLO).
Alignment of CLO with the Program learning goals (PLG) and Assessment of the learning outcomes of the course is
presented below.

Course Learning Program Learning Goals (PLG) Assessment

Outcome Tools
Students will be PLG 1: Students will use the knowledge acquired to understand, Quizzes: PLG 1.1
able to apply analyse, and evaluate complex business problems Mid-Term: PLG
concepts of 1.1 Students will demonstrate the ability to analyse and evaluate 2.2
microeconomics management concepts and theories. End-Term: PLG
for managerial PLG 2: Students will use critical and analytical skills to make decisions 2.2
decision making. backed by data and logic to handle business problems and challenges. –
2.2 Ability to assimilate relevant information Class
2.3 Ability to identify different alternatives and critically evaluate them Participation:
PLG 2.3

Session Plan
Sessions Topic and Sub-topics Reading Mapping with
(with brief description of what intends to be Course Objective
achieved)
1 Introduction PR, Chapter 1, pp. 3- CO1
• Introduction to Economics, Understanding 19
the themes of Microeconomics: Economic-
Agents; Trade-offs.
• Market, competitive markets, market price.
• Real Prices and Nominal Prices.
2-3 Demand and Supply PR, Chapter 2, pp. CO1 and CO2
• Understanding the Demand and Supply 21-32
concepts. The Effects of 9/11 on
• The Market Mechanism and its treatment. the supply and Demand
• Analysing various real-world markets with for New York City
the tools of Demand and Supply. Office Space
4 Consumer Behaviour PR, Chapter 3, pp. CO1 and CO2
• Consumer behaviour and consumer 67-92
choice. A College Trust
• The concept of Utility, Law of
Fund
Diminishing Marginal Utility.
5-6 Individual and Market Demand PR, Chapter 4, pp. CO1 and CO2
• Understanding the derivation of Individual 111-126
Demand curve: Why the demand curve is
downward sloping?
• Role of Income and Substitution Effects.
• Understanding the Market Demand.
7 Elasticity of Demand PR, Chapter 2, CO1 and CO2
• Understanding the concept of Elasticity. pp.33-45
• Analysing various real-world applications of PR, Chapter 4,
Elasticity.
pp.126-129
 MBA Course Outline
• Developing the empirical understanding of
Demand Estimation.
8 The Impact of Price Ceilings and Price Floors PR, Chapter 9, CO1 and CO2
• Understanding the role of Consumer and pp.307-324
Producer Surplus in consumer welfare.
• Examining the impact of government
interventions in the framework of
competitive market: evaluating the gains and
losses from government policies.
9 Theory of Production PR. Chapter 6, CO1
• Theory of Firms: Introduction pp.189-204 and 211-
• Production Function, Law of Diminishing
214.
Marginal Returns.
• Production decisions of firms.
10-11 Theory of Cost PR, Chapter 7, pp. CO1 and CO2
• Measuring cost: which cost matters in firm 217-231 and 241-
level decision making.
247.
• The relevance of time; the determinants of
short-run cost.
• Economies and Diseconomies of Scale.
12 Profit Maximisation and Perfect Competition PR, Chapter 8, CO1 and CO2
• Introduction to market structure. pp.269-296
• Concepts of marginal revenue, marginal
cost, and profit maximization.
• Determination of optimal output in a The Short-Run
perfectly competitive market: short run and Output Decision of
long run. an Aluminium
• Short-run market supply curve. Smelting Plant

13 Market Power and Monopoly PR, Chapter 10, CO1

• Determination of optimal output pp.349-358, pp.360-
• Measuring monopoly power & application 370
of thumb rule of Pricing.
• Sources of monopoly power.
14-15 Pricing with Market Power PR, Chapter 11, pp. CO1 and CO2
• Price Discrimination 393-405
• First Degree Price Discrimination
• Second Degree Price Discrimination
• Third Degree Price Discrimination

16-17 Monopolistic Competition and Oligopoly PR, Chapter 12, pp. CO1 and CO2
• Determination of firm’s output in a 447-454 and pp.468-
monopolistic competition.
473
• Determination of optimal price in different
forms of oligopoly: Bertrand model & Price
Rigidity
18 Game Theory and Competitive Strategy PR, Chapter 12 CO1 and CO2
• Gaming and Strategic Decisions p.462-467 &
• Dominant Strategies Chapter 13 pp. 483-
• Nash Equilibrium
• Prisoner’s Dilemma
492
19 Market Failures PR, Chapter 18, CO1
Why markets fail? Market Power, Incomplete pp.653-658,
Information, Externalities, Public Goods.
pp.683-687
20 Markets with Asymmetric Information PR, Chapter 17, CO1
• Markets for Lemons: The market for used pp.625-632 and
cars, implication of asymmetric information
pp.637-639
• Moral Hazard
 MBA Course Outline
Pindyck, Robert S., Rubinfeld, Daniel L. and Banerjee, S (2022) Microeconomics, 9th
Textbooks
Edition, Pearson Education, Inc
Refer Institutional policies to procure materials

Notes & See the detailed plan.

Readings

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Cases See the detailed plan.

Refer Institutional policies to procure materials

Simulations None

Refer Institutional policies to procure materials

Other (1) Paul A. Samuelson (the original 1948 edition), Economics

Reference (2) N. Gregory Mankiw, 6th Edition, Principles of Economics
Books and
Materials

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Evaluation Component Weightage(%)

components Mid-Term Exam: 35
End-Term Exam: 35
Quizzes: 20
Class Participation: 10
Total 100%

Assessment Continuous assessment throughout the trimester

Pattern

Academic Refer to PGP Manual

Standard and
Honesty

Refer Program Specific manuals

 MBA Course Outline
Other Relevant Class participation will be evaluated based on three parameters:
Information class attendance, preparedness for the classes, and actual class participation
…………………………………………………………………………………………………..
Make-up Exam policy:
No make-up will be given for missed quizzes.
Make up for Mid-term and End-term exams will be given only if the participant was on leave
with approval from the PGP Chair. The nature of such make-up exam will be decided by the
instructor
Refer Program Specific manuals