School of Business and Management - CHRIST (Deemed to be University)

Syllabus-Managerial Economics

Course Name: MANAGERIAL ECONOMICS Course Code: MBA 132

Total number of hours: 30 Hrs Credits: 3
Course Description: This course is offered in the first trimester to equip students with the art
of managerial decision making at the firm level. Managerial Economics introduces students to
the concepts of demand, pricing, cost, production, and markets. The course also demonstrates
how all these concepts helps the manager in taking optimum and rational decisions.

Course Objectives:

At the end of the course the students will be able:

1. To make use of the basic and fundamental concepts of managerial economics in making
optimal decisions.
2. To analyze market forces, i.e. demand and supply, and compute the elasticity of demand
and supply.
3. To examine the dynamics of consumer behaviour in the context of scarcity and opportunity
cost.
4. To determine optimum cost and revenue, and break-even sales and quantity, in the short
and long run.
5. To evaluate the equilibrium conditions for price, output, and maximisation of profit in
different market conditions.
Course Learning Outcomes:

CLO-1: Develop the fundamental concepts of microeconomics used to facilitate the problem
of scarcity and resource allocation in the context of choices and opportunity cost.
CLO-2: Examine the factors determining the Demand and Supply, elasticities and forecasting
of demand.
CLO-3: Analyze consumer behavior with the help of concepts of utility and indifference curve
in their pursuit of maximization of satisfaction with limited money income.
CLO-4: Deduce the cost, revenue, and production functions for business implications.
CLO-5: Assess the different market conditions, intensity of competition, and conditions for
equilibrium in different types of markets like perfect competition, monopoly, monopolistic
competition, oligopoly, and duopoly.
Pedagogy: This course makes use of case studies, caselets, group discussion and newspaper
clippings in the achievement of course outcomes for the students.
Syllabus

Unit I. Introduction (4 Hrs)

Introduction to Managerial Economics-Economic Systems-Principles of managerial economics,

Integration with other managerial decision-making process-Tools and analysis of
optimization-role of Government, Competition Vs Cooperation. Relationship with other
management subjects.

Unit II. Demand and Supply Analyses (Application) (6 Hrs)

Definition of demand, Law of demand and its determinants and exceptions, movement along
the demand curve and shift in demand curve. Demand and supply relationship*. Definition of
supply, Law of supply, Movement along the supply curve and shift in supply curve, Factors
affecting supply, Market equilibrium and pricing, floor price and ceiling price. Application of
demand and supply analyses: Concepts of elasticity, degree, determinants & types, practical
implication, Relationship of Revenue and elasticity of demand, Demand forecasting and its
use in demand. Qualitative and Quantitative interpretation of demand techniques-model
specification using regression and OLS.

Unit III. Consumer Behaviour (Application) (6 Hrs)

Introduction to Consumer behavior, Utility, Cardinal approach, Ordinal approach,

Consumer’s equilibrium using Indifference curve analysis and Consumer surplus, Application
of Indifference curve analyses.

Unit IV. Analyses of Production, Costs and Revenues (5 Hrs)

Production functions, Law of Variable proportions, returns to scale and economies of scale.
Producers’ surplus- Costs, Isoquants, least cost combination types of costs, short run costs
and long run cost, Revenue Analysis –TR, AR and MR, and break-even analysis, (case study)

Unit V. Market structures and decision making (9 Hrs)

Market types, characteristics, Perfect competition features, Price determination and

equilibrium in the short run and the long run, Monopoly - features, equilibrium condition,
Price discrimination. Monopolistic competition- features, Oligopoly - Cartels as one of the
features of Oligopoly, Game theory-types, static and dynamic games-Pricing Strategy (Case
study), Sustainability business model- Circles of Sustainability.

Essential Reference:
Mankiw, N. Gregory. (2015). Principles of Micro Economics (7th ed.). New Delhi: Cengage
Learning

Recommended References:
Salvatore, D. (2013). Managerial economics Principles and worldwide applications, New York:
Oxford University Press New Delhi.
Geetika., Ghosh., Piyali., & Choudhari, P. R. (2012). Managerial Economics. (2nd ed.). New Delhi,
India: McGraw Hill Higher Education.
Trivedi M.L. (2010). Managerial economics - Theory and applications. New Delhi: TATA McGraw
Hill.
Managerial Economics A problem -solving approach, Nick Wilkinsin, (2005) Cambridge
University press e-copy.

Assessment Outline:
 Sl.No Particulars Weightage

1 CIA- I 20

2 CIA-II 25

3 CIA-III 20

4 End Trimester Exam 30

5 Attendance* 05

Note: * Refer to Students Handbook for particulars