INDIAN INSTITUTE OF MANAGEMENT
ROHTAK
First Semester 2015-2016
MANAGERIAL ECONOMICS (3 Credits)
Course Handout
Dated: 19/07/2015
Scope & Objective:
The course provides to the students: an insight into the scientific & analytical methods, techniques and tools of
economics; a precise and comprehensive coverage of fundamental concepts in economics; and suitable examples to
expose him/her to possibilities of applications of these concepts in business and economic policy.
Prescribed Text Book:
T1. Truett & Truett, "Managerial Economics", John Wiley & Sons, 8th edition, Singapore, 2004.
Reference Books:
R1. Petersen, Lewis and Jain, “Managerial Economics”, Pearson Education, New Delhi, 2006.
R2. Thomas J Webster, “Managerial Economics”, Academic Press, 2003.
R3. Suma Damodaran, "Managerial Economics", Oxford University Press, 2006
Lecture Plan
Lecture Learning Objectives
No
1
Examine the nature and scope of managerial economics
Topics
2
Reasons for the existence of firm
Introduction to basic principles &
methodology of managerial economics
Theory of the firm
3
Analysis of the operation of markets
Demand analysis & elasticities
4
Examine various techniques used by managers for forecasting
Economic forecasting
5
Conditions under which firms produce goods and services
Production analysis - 1
6
Long-run production function and estimation of production function
Production analysis -2
7
Optimal combination of inputs used in the production process
Cost of production
8
Decision making process with respect to organizational objectives
Profit and revenue maximization
9
Market structure: the determination of price and output
Perfect competition & Monopoly
10
Monopolistic competition
11
Market structure: how price and output are determined under
Monopolistic competition
Market structure: how price and output are determined under oligopoly
12
Explaining firms’ behaviour using game theory
Games, Information, and strategy
13
Understand the real world situations of pricing practices
Pricing Practices
14
Factor markets and its equilibrium
15
Employment and unemployment in India-measures
Factor markets & profit maximizing
employment of variable inputs
Indian Labour market
16
Understand macroeconomic aggregates and its relevance
17
Understand the benefits of cross-country trade
18
Does market efficiently allocate resources?
Duopoly and Oligopoly
Macroeconomic variables & their
measurement
International Trade, Comparative
Advantage
Market failure and government
intervention
Evaluation Scheme:
EC
Evaluation Component &
No.
Type of Examination
EC-1 Quiz
EC-2 Group presentation
EC-2 Mid-Semester Test
EC-3 End-semester Exam