Managerial Economics
Course Objective
Managerial Economics course intends to introduce the basic concepts of micro and macroeconomics emphasizing the application of economic theory to business decision making process. The course will cover the basic concepts of demand analysis and estimation, production and cost analysis under different market conditions. It also gives an overview of macroeconomics variables like output, employment, interest rates, inflation and exchange rates, economic analysis of these variables through models and theories. Monetary policies of central bank and Fiscal policy of governments are discussed.
Course Outcomes
- Apply demand, supply and elasticity concepts to firm and government decisions making.
- Analyse the relationship between inputs used in production and the resulting outputs and costs.
- Analyse a firm’s profit maximizing strategies under different market structures.
- Analyse and interpret the Economic data and measurement of key Economic variables related to output, cost of living & unemployment.
- Evaluate the role of central bank and monetary policy regulations
Managerial Economics Syllabus T30
| Session No. | Topics | Key Concepts Covered | Suggested Reading (Dwivedi) |
|---|---|---|---|
| 1 | How Markets Work | Demand & Supply, Market Equilibrium, Government Interventions (price control, taxes) | Ch. 6 (pp. 109–123), Ch. 13 (pp. 325–336) |
| 2 | Elasticity & Policy Implications | Price, Income, Cross & Promotional Elasticity, Application in business and govt policy | Ch. 8 (pp. 165–190) |
| 3 | Theory of Consumer Choice | Utility Analysis (Cardinal & Ordinal), Indifference Curves, Budget Constraint, Consumer Equilibrium | Ch. 6 (pp. 124–145) |
| 4 | Production & Cost | Laws of Production, Isoquants, Returns to Scale, Cobb-Douglas Function | Ch. 10 (pp. 227–263) |
| 5 | Cost Structures & Break-even | Short-run & Long-run Cost Curves, Economies of Scale, Learning Curve, BEA | Ch. 11 (pp. 264–298) |
| 6 | Industry Structures | Market Types: Perfect Competition, Monopoly, Monopolistic Competition | Ch. 14–16 (pp. 344–381) |
| 7 | Oligopoly & Game Theory | Kinked Demand Curve, Price Leadership, Collusion, Nash Equilibrium | Ch. 17 (pp. 383–409), Ch. 18 (pp. 414–420) |
| 8 | Macro Variables & Fiscal Policy | GDP, CPI, WPI, Efficiency Wages, Fiscal Deficits, Public Debt | Ch. 25 (pp. 519–530), Ch. 31 (pp. 634–659), Ch. 40 (pp. 779–795) |
| 9 | Savings & Investment | Understanding investment vehicles like stocks, bonds, and real estate, and considering risk tolerance and time horizons. | Ch. 21 (pp. 461–480), Ch. 22 (pp. 481–498) |
| 10 | Money, Inflation & Monetary Policy | Tools of Monetary Policy, Inflation Theories, Hyperinflation, Policy Impacts on Firms | Ch. 27 (pp. 560–575), Ch. 39 (pp. 763–778), Ch. 31 (pp. 634–659) |
Textbook & Resources
- Managerial Economics – D.N. Dwivedi - (Publisher: Vikas Publishing House)
- Managerial Economics: Concepts and Applications – Thomas & Maurice - (Publisher: McGraw-Hill)
- Indian Economy – Ramesh Singh (For supplementary macroeconomic context) - (Publisher: McGraw-Hill)