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 PlanLecture No

Learning Objectives Topics

1 Examine the nature and scope of managerial economics Introduction to basic principles & methodology of managerial economics

2 Reasons for the existence of firm 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 Market structure: how price and output are determined under Monopolistic competition

Monopolistic competition

11 Market structure: how price and output are determined under oligopoly Duopoly and 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 Factor markets & profit maximizing employment of variable inputs

15 Employment and unemployment in India-measures Indian Labour market

16 Understand macroeconomic aggregates and its relevance Macroeconomic variables & their measurement

17 Understand the benefits of cross-country trade International Trade, Comparative Advantage

18 Does market efficiently allocate resources? Market failure and government intervention

Evaluation Scheme: EC No. Evaluation Component &

Type of ExaminationDuration Weightage Date and Time

EC-1 Quiz 40 minutes 20%EC-2 Group presentation 20 minutes 20%EC-2 Mid-Semester Test 30%EC-3 End-semester Exam 30%

Instructor