IQRA UNIVERSITYMBA

Subject: Managerial Economics

Lecturer:Yasin Turabi
LESSON PLAN
Week 1 Introductions.
The Nature and Scope of
Managerial Economics
1. Introduction by lecturer
2. Students introduce themselves
3. The significance of economics in
managerial decision-making.
4. The four-stage model
5. Importance of economics—for an
individual and firm
6. Economic goal of the firm—profit
maximization; economic value and
market value

Week 2 Supply and Demand 1. Market demand and supply (its

equilibrium)
2. Consumer’s spending and
producer’s income
3. Supply, demand, and price: the
managerial challenge
4. Comparative static analysis—short
and long run analysis
5. Classical VS Keynesian Approach

Week 3 Elasticity and its

Application 1. The economic concept of elasticity.
2. The price elasticity of demand.
3. The income elasticity and cross
elasticity of demand
4. Cobweb theorem
5. Elasticity of supply—mathematical
interpretation

Week 4 Demand Estimation

and Forecasting 1. Regression Analysis—hazards
spiralling in its utilization
2. Identification problem, multi co
linearity problem & autocorrelation
problem
3. Forecasting—pre-requisites

Week 5 The Theory and

Estimation of 1. Production function—importance
1
 Production(Cont:) in managerial decision making
2. Short-run analysis of average and
marginal product
3. Long-run production function—a
pivot in managerial decision
making
4. The genesis of economic models—
advantages and disadvantages
5. Capacity planning

Week 6 The Theory and

Estimation of 6. iso quant and iso cost curves
Production(Cont:) 7. a firm’s optimal combination
inputs.

Week 7 Test and Guest Speaker Session 1. 1st Comprehensive Test

2. Guest Speaker session
Week 8 The theory and 1. Definition and use of cost
Estimation of Cost 2. Relative-production and cost
3. Short and long run cost
4. Economies of scope and scale
5. 2nd Quiz to be attempted
Week 9 Pricing and Output
Decisions (Cont:) 1. Perfect competition and monopoly
2. Competition and market types
3. Pricing and output decisions in
perfect competition
4. Pricing and output decisions in
monopoly markets

Week 10 Pricing and Output

Decisions 1. Monopolistic competition and
oligopoly
2. Market concentration—pricing
under oligopoly
3. Competing in imperfectly
competitive markets
4. Strategy—the challenge for firms in
imperfect competition

Week 11 Test and Assessment Feedback 1. 2nd Comprehensive Test

2. Feedback on Quiz assessment.
3. Assignment preparation
workshop.
Week 12 Special Pricing Policies
1. Cartel arrangements
2. Price leadership

2
 3. Revenue maximization
4. Price discrimination
5. Price-Classification
6. 3rd Quiz to be attempted

Week 13 Game Theory and

Asymmetric 1. Game theory—auction and
Information strategy
2. Gleaning asymmetric information
3. Reputation, standardization and
market signaling

Week 14 Managerial Economics 1. Gauging potential gains from

in Action surging market competition by
using cost-minimization
2. Impact of information technology
on cost-minimization
3. Impact on competition of the ability
of business to source products and
services from low cost emerging
economies
4. A prudent industry analysis
5. The role of economic indicators in
managerial economics

Week 15 Final Presentations 1. Final Presentations

2. 4th Quiz to be attempted

Week 16 Final Exam