OURSE TITLE: MANAGERIAL ECONOMICS
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Course Description
This course presents the basic concepts of microeconomics theory with an emphasis on business
applications. Application of economic analysis to business decision-making & organization:
basic economic tools, business objectives, demand analysis; pricing policies & competitive
strategies, cost & production analysis, market structure, decision-making under uncertainty,
capital budgeting & investment analysis. Both economic theories and mathematical tools are
critical in solving managerial problems irrespective of the type of organizations, i.e. profit
oriented or non-profit oriented, private, public, large small organizations and/or institutions.
Course Objectives
After successfully completing this course you should be able to:
Understand and apply principles and tools of modern microeconomics to managerial
decision making
Apply the principles of economic analysis and use economic models to analyze the
economic forces on business
Understand various negotiation and competition models
Understand various pricing strategies in monopoly and oligopoly models
Understand various contracting models with applications to the firm
Understand and manipulate mathematical models of the topics covered in the course
Course Content
Chapter 1- Meaning and Importance of Managerial Economics
1.1. Introduction, meaning
1.2. Scope of managerial economics
1.3. Importance of the study of managerial economics
1.4. Functions of a managerial economist
Chapter 2-Demand analysis and forecasting
2.1. Meaning and law of demand
2.2. Elasticity of demand
2.3. Meaning of forecasting
2.4. Level of demand forecasting
2.5. Criteria for good demand forecasting
2.6. Methods or techniques of demand forecasting
2.7. Demand forecasting for a new product
Chapter 3- Supply & Market Equilibrium
3.1. Meaning of supply and law of supply
3.2. Exceptions to the law of supply
3.3. Changes or shifts in supply
3.4. Elasticity of supply
3.5. Factors determining elasticity of supply
3.6. Market equilibrium
Chapter 4- Production Analysis
4.1. Meaning of production
4.2. Production function
4.3. Cost of production
Chapter 5- Cost Analysis
5.1. Introduction to cost analysis
5.2. Types of costs
5.3. Cost function
5.4. Cost-output relationships in the short run
5.5. Cost-output relationships in the long run
Chapter 6- Objectives of Firm
6.1. Introduction
6.2. Profit maximization model
6.3. Economist theory of the firm
Chapter 7- Revenue Analysis and Pricing Policies
7.1. Meaning and types of revenue
7.2. Relationship between revenues and price elasticity of demand
7.3. Pricing policies
7.4. Objectives of pricing policies
7.5. Pricing method and market structure
7.5.1. Pricing under perfect competition
7.5.2. Price discrimination under monopoly
7.5.3. Price under Monopolistic competition
7.5.4. Price under Oligopoly markets
Mode of Delivery
Lecture, case analysis and presentation, group discussion, and term paper and presentation
Evaluation Schemes:
Assignment and Presentation 15%
Term Paper and Presentation 20%
Case Analysis and Presentations 15%
Final Exam 50%
Total 100%
References
1. Michael R. Baye, Managerial Economics, McGraw Hill, New York, 2000Yogesh
Maheswari, Managerial Economics, Phi Learning, New Delhi, 2005 Gupta G.S.,
2. Maurince, Thomas, and Smithson, Managerial Economics, 4th edition Richard D. Irwin,
Boston 1992
3. McGuigan and Moyer, Managerial Economics, 5th edition, West Publishing Company,
1989
4. Managerial Economics, Tata McGraw-Hill, New Delhi Moyer Harris,
5. Managerial Economics, Cengage Learning, New Delhi, 2005 Geetika