Teaching Plan

Managerial Economics

Semester II
Batch 2018-23

By:
Sweta Saurabh

Academic Year 2018-19

(Session: December 2018- April 2019)

Symbiosis Law School, Noida

Symbiosis International (Deemed University

1. INTRODUCTION

Managerial Economics is a branch of economics which deals with the application

of microeconomic analysis to decision-making techniques of businesses and
management. Microeconomics issues includes, pricing decisions, cost
determination, compensation, output decisions, right time of entry and exit of
firm from the markets, etc. In order to find the solutions of administrative issues
or business decision-making, managerial economics applies economic theories,
tools, and techniques. It also provides principles to foster the goals of the
organization, as well as a better understanding of the external business
environment in which an organization operates.

The primary purpose of this course is to help the students in identifying the
Economic Environment of Business, Forecasting the Better Business Decision, to
find out the Cost and Revenue Concept for a firm, to understand the firm’s ability
to survive through financial performance and position. The course shall also be
useful in discovering the Business Environment in India, and for understanding
Indian Business in an International Context.

2. LEARNING OBJECTIVES (Knowledge, Skills and Outcomes)

Pedagogy:

In order to increase the learning activity of learners, active methods of teaching

shall be used. Students will be expected to participate in the class discussions,
problem solving, case studies, brainstorming sessions, assignments and projects
related to market economies.
A. Knowledge

This course is designed to construct a set of learning objectives that enhance the
student’s ability to develop analytical skills and decision making power. After
studying Managerial Economics the students would be able to enhance
knowledge about the role of Micro Economic Factors. The main purposes of the
course are as follows:
• It provides an understanding of the economic environment and its impact on
business strategy formulation (Law of Demand and Supply, Elasticity of
Demand and Supply, Equilibrium condition of Firm etc.)

• It emphasizes Strategic Managerial Decision-Making by focusing on Statistical

models or technical analysis (Forecasting, Cost and Revenue Concepts,
Viability Analysis and Pricing Decisions)

• Offers ideas and tools to understand the local and global economic forces,
including Government regulations, market scenario and international
business.

B. Skills

Quantitative Skills: The course takes a scientific approach to business

decisions. The tools and techniques applied in the concepts shall significantly
enhance the quantitative skills of the learners.

Problem Solving Skills: The Students will learn how to deal with the following
issues:
• How much power do the suppliers have? What are the factors that contribute
to their bargaining power?
• How much power do the buyers have? What are the factors that contribute to
their bargaining power?
• How easy is it for businesses to enter the market? What are the factors
affecting the threat of new entrants?
• What are the substitutes for your product (or service)? How do substitutes
affect the market?
• What is the intensity of the competition in the market? What factors influence
the rivalry among competitors?
• How important is Government regulations?
• What is the role of Banks in developing the MSMEs?

In doing so, students significantly enhance their problem solving skills.

Analytical Skills: Through the Case Studies the students will get the opportunity
to analyze the real-world business decisions made by the owners and managers of
firms in a variety of scenarios. They will learn from both the successes and failures
of the different types of business decisions made in these cases. That would be
helpful for the development of analytical skills.

C. Outcomes

Learning outcomes from this course focus on developing an understanding of

concepts and tools that are relevant to firm-level decision making. The students
will also be able to:

• Demonstrate proficiency in understanding supply and demand concepts.

• Apply statistical methods to improve knowledge of economic models.

• Use basic regression analysis to analyze and forecast demand curves.

• Analyze production functions and understand firm choice under constraints.

• Be introduced to the concepts of choice under risk and uncertainty.

Final Outcome:
Assessment is by compulsory coursework examination (40% Internal + 60%
External= 100%) under the auspices of the Symbiosis International (Deemed
University).

3. LECTURES

A. Times and Attendance

Three lectures per week have been set aside for this course for each division. Verify
it from the timetable assigned for each division. In addition to regular classes, two
Banyan Tree sessions will be conducted which will form part of attendance as well.
Pl. refer to the Banyan Tree Sessions schedule as given under Tutorial- Mode and
Schedule.

Lecture outlines, principally in the form of PowerPoint slides, and relevant

study/reading material will be made available in ‘The Library’ on ‘Curiosity’ Portal
at https://slsnoida.curiositylive.com. To facilitate your understanding of these
lectures, you should always read at least the relevant pages of suggested readings in
advance of each lecture.

As per Symbiosis International (Deemed University) Regulations, please

note, “Students are expected to attend minimum 75% of all scheduled
sessions and other forms of instruction as defined by the programme of
study.”

The student will not be eligible to appear for the examination if he / she fail to put in
the required attendance. The Students can update themselves of their attendance
daily online in ‘Attendance’ on ‘Curiosity’ Portal at https://slsnoida.curiositylive.com.

B. Notifications:

Learners are informed that notice/s, if required, with respect to Academic-

Administration, either by Course-in-Charge or Faculty-In-Charge, Academic
Coordination will be sent using ‘Owl@Curiosity’. No notifications will be published
by either Course-in-Charge/Faculty-In-Charge, Academic Coordination or Learner
using ‘Library@Curiosity’. You are required to keep yourself duly informed.

C. Lecture Outline

WEEK TOPICS

Lecture-1- Syllabus Preview Discussion of Teaching Plan

Week – 01: Lecture-2- Discussion of Teaching Plan Lecture-
3- Project topic allocation
17/12/2018

Topic-1: Introduction to Managerial Economics and its

relation to Micro Economics
Week – 02: Lecture 4: Introduction of Managerial Economics,
Lecture 5: Meaning of Managerial Economics; and its relation
24/12/2018 with Micro Economics.
Lecture 6- Scope, Objectives of Managerial Economics
 Lecture 7: Analysis of Managerial Economics
Week – 03: Topic-2: The Economic Environment of Business
Lecture 8: Demand; Types of Demand Lecture 9:
31/12/2018 Law of Demand; Application and Limitations

Lecture 10: Supply; Law of Supply Lecture 11:

Week – 04: Applications and Limitations Lecture 12: Elasticity
of Demand
07/01/2019

Lecture 13: Practical aspects of Elasticity of Demand Lecture

Week – 05: 14: Practical aspects of Elasticity of Supply Lecture 15:
Examples of Elasticity of Demand and Supply
14/01/2019

Lecture 16: Concept of Equilibrium

Lecture 17: Changes in Equilibrium when Price/ Income
Week – 06:
changes
Topic-3: Forecasting the Better Business Decision
21/01/2019
Lecture 18: What is Forecasting? The Role of Forecasting &
Methods
Lecture 19: Delphi method, Linear Regression Model
Week – 07: Lecture 20: Time Series Method(brief idea)
Lecture 21: Examples on the methods used
28/01/2019

Lecture 22: Mathematical problems on Forecasting methods

Week – 08: Topic-4: Cost and Revenue Concept for a firm
Lecture 23: Introduction to Total Cost Lecture 24:
04/02/2019 Average Cost and Marginal Cost

Lecture 25: Total Revenue; Average: & Marginal

Week – 09: Revenue
Lecture 26: Equilibrium of a firm
11/02/2019 Lecture 27: Exercise on Revenue concept

Topic-5: Viability Analysis of a Firm

Week – 10: Lecture 28: Payback period criterion
Lecture 29: Net Present Value criterion Lecture 30:
18/02/2019 Problems (Mathematical interpretation)

Lecture 31: Exercise on Analysis of a Firm

Week – 11: Lecture 32: Case Study
Topic-6: Pricing Decisions of the Firm
25/02/2019 Lecture 33: Concept of market (Perfect competition; Monopoly
and Oligopoly)
 Lecture 34: Usage of Average Cost Pricing or Full Cost Pricing
Week – 12: Lecture 35: Limit Pricing and Barriers to Entry Lecture 36:
Cartels and Game Theory
04/03/2019

Lecture 37: Introduction to Maximin, Minimax Strategies and

Saddle Point
Week – 13: Lecture 38: Case Study of OPEC as a Cartel
Lecture 39: Case study contd.
11/03/2019

Topic-7: Business Environment in India

Week – 14: Lecture 40: Supply of Finance to Industry through Credit
Institutions
18/03/2019 Lecture 41: Role of ICICI, IDBI and SIDBI
Lecture 42: Development of Capital market in India
Lecture 43: Introduction to NBFCs; Merchant Banking
Week – 15: Lecture 44: Lease and Hire Purchase Companies; Mutual
funds; Venture Capital Companies
25/03/2019 Lecture 45: Role of Regulatory Authorities

Topic-8: Indian Business in an International Context

Lecture 46: Composition of Balance of Payments of India
Week – 16:
Lecture 47: FDI; Portfolio Investments
Lecture 48: Exchange Rate Management in India
01/04/2019

Lecture 49: Impact of WTO on Indian Business

Week – 17: Lecture 50: Major issues of IT for Indian Business
Lecture 51: Revision
08/04/2019

4. READING AND MATERIALS

A. Textbooks

• Mithani, D. M, “Managerial Economics”, Himalaya Publishing House, 2017

• Dominick, S. and Ravikesh Srivastava, “Managerial Economics”, Oxford
University Press, 2008.
• Damodaran Suma, “Managerial Economics”, Oxford University Press, 2017.

Note:
• The above list is indicative and not exhaustive.
• Earlier editions of a number of the above texts might also be available and
can be consulted once account is taken of their datedness.
 • These text were selected because they provide in one volume a
combination of text, cases and materials, designed to be read as a whole
i.e. a “one-stop shop”. Nevertheless, the text provides the basic reading for
the course only. There is much more to the study of Managerial Economics
than this and you will undoubtedly benefit from undertaking some reading
and study of your own. It is creditable if you, in respect of the proper use of
independent research and study, follow up some of the case references,
periodical articles or other material referred to in the prime textbook or in
class-or even to do some research of your own. A good resource to use is the
Symbiosis Law Library and online databases such as JSTOR, ProQuest,
Emerald and EBSCO.

5. ASSESSMENT

Internal Assessment: Internal examination will be conducted for 40 marks. It

will include:

A. First Internal Assessment – Project (Long-Term Paper)- (10 marks)

B. Second Internal Assessment – Tutorial (Open Book Examination)- (20 marks)

C. Third Internal Assessment - Viva-Voce – (10 marks)

External Assessment: The Symbiosis International (Deemed University) will

conduct external written examination for 60 marks. It consists of ten objective-
type (2 marks each = 20 marks) and 4 subjective-type/cases and open
problems/questions (10 Marks each) with an alternative (40 marks).

6. Internal Assessment Mode and Schedule

A. Project Mode and Schedule

Guidelines:
• The students are suggested to select a topic on which they would like to
research. It is desirable that the learners come up with atleast two topics to
choose from. The topic should have a specific objective and scope of
research. The learners can consult the Course In-Charge after the lecture
 hours to finalize the topic. The entire process of finalizing the topic should be
over by December 22, 2018. The Topic shall be finalized only after
consultation and approval of the Course In-Charge.
• As per the anti-plagiarism policy, all projects shall be subject to plagiarism
check vide the ‘Turn-it In’ software. The projects with more than 20%
plagiarized content shall be marked ‘zero’. Plagiarism report to be attached
by the learners.
• It is important for all to follow the deadlines regarding Project submission.
Those unable to meet the deadlines shall be liable to forfeit their marks (-2
for late submission).
• The submission of the research/project work shall include all the
components and annexures mentioned.
The project shall include:
1. Name, PRN, Division and Batch of the Learner
2. Topic of the Project
3. The Introduction
4. The Literature Review (2 Literature reviews)
5. Objective/s of the Study
6. Research Methodology
7. Analysis of the Research
8. Findings of the Research
9. Discussion and Conclusion
10.References

The details about the rules of submission are annexed with this document.

Assignment Date Submission Date Result

December 18, January 29, February 04,

2018 2019 2019

B. Tutorial- Mode and Schedule

There will be one tutorial of 20 marks, minimum two questions of 10 marks each.
Each student will attempt it on all the occasion.
 It is an Open Book Examination i.e. examinees are allowed to bring and use any
material including Books, Articles, Hand Written Notes, Hand Outs and alike
printed material. It does not include use of any electronic gadgets, machine or
alike material.

Tutorial Result Topics

Date Date

February March 08, 1. Introduction to Managerial Economics

27, 2019 2019 and its relation to Micro Economics
2. The Economic Environment of Business
3. Forecasting the Better Business
Decision
4. Cost and Revenue Concept for a firm

Banyan Tree Schedule for Tutorial

Process: to understand the kind of questions to be asked, two online sessions

(situation based questions) will be conducted on the mentioned dates by the
faculty. Situation based question/s will be uploaded on ‘banyan tree’ @ curiosity
portal on said dates.
Those who will respond / answer the question within stipulated time given
therein will be granted attendance one lecture each for these sessions. This
activity is compulsory for all and attendance so granted will form part of the total
attendance.

Tutorial– Online Sessions @Banyan Tree

Begins Ends
Session Attendance

Date & Time Date & Time

09/01/2019 11/01/2019
I @8:00 pm @11:59 pm One Lecture

01/02/2019 03/02/2019
II @8:00pm @11:59 pm One Lecture
 C. Viva-Voce and Schedule

The Viva-Voce will be conducted on the topics mentioned below.

Topics

1. Viability Analysis of a Firm

2. Pricing Decisions of the Firm

The Viva-Voce shall be evaluated on the following parameters:

• Conceptual Understanding (application of the concepts) (4 marks)
• Content (2 marks)
• Communication skills (2 marks)
• Professionalism (Attire, Punctuality, Posture, Etiquette) (2 marks)

Viva-Voce Schedule

Division A
Date Roll Number Time
March 12, 2019 01-22 02:00- 05:00 pm
March 13, 2019 23-44 02:00- 05:00 pm
March 14, 2019 45 onwards 02:00- 05:00 pm
Division B
March 15, 2019 01-22 02:00- 05:00 pm
March 18, 2019 23-44 02:00- 05:00 pm
March 19, 2019 45 onwards 02:00- 05:00 pm
Division C
March 20, 2019 01-22 02:00- 05:00 pm
March 22, 2019 23-44 02:00- 05:00 pm
March 25, 2019 45 onwards 02:00- 05:00 pm

7. ADMINISTRATIVE ARRANGEMENTS

The Course In-Charge for Managerial Economics is Prof. Sweta Saurabh. In case
you face any problem in dealing with the subject, feel free to see the concerned
faculty.

8. OFFICE HOURS AND CONTACT INFORMATION

If few doubts remain, kindly contact Prof. Sweta Saurabh at:

sweta@symlaw.edu.in . It is highly appreciated that the students clear the
doubts while in class, because it solves two purposes (i) many students have same
doubts (ii) it helps you to concentrate further in class.
 Annexure: Guidelines for Project

1) The Maximum Marks for the project is 10.

2) The final copy of the project should be presented in accordance with
the following specifications:
• The paper used for printing shall be of A4 size.
• Printing shall be in a standardized form, on both the sides of the paper.
• Spacing- 1.5
• Font: Times New Roman.
• Font Size: Main Heading 16(Bold), Sub Heading 14(Bold) and text 12
• Alignment: Justified.
• MS Word: 2003-7 Version, Page layout: left1.5 cm; top, right and
bottom 1 cm.
• Word Limit: Should not exceed 2500 words.
• The title of the Project, Name of the Candidate, PRN, Division, Batch,
University, and the name of the research guide with his/her designation
and full official address shall be printed on the first page and on the front
cover as given in Annexure – A.
• Certificate Annexure- “B” must affirm that the research work of the
candidate is original, and that the material, if any, borrowed from other
sources and incorporated in the thesis has been duly acknowledged should
be signed by the candidate. It should also state that the candidate
himself/herself will be held responsible and accountable for plagiarism.
• The Scheme of thesis (Research Project) should be given as per Annexure
“C”.
• Bibliography should be written alphabetically and given as per
Annexure“D”.
 Annexure A

Front page and Cover

Title of the project (centered on two or more lines)

-------------------------------------------------------------------------
----------------------------------------------------

Submitted by
Name of the candidate
----------------------------------------

Division …. PRN. ………………….. Batch……………..

Symbiosis Law School, NOIDA

Symbiosis International (Deemed University), PUNE

In
Month, year
Under the guidance of

Name of guide
-----------------------------------
Designation and official address
------------------------------------------------------------
--------------------------------------
 Annexure-“B” – Certificate

CERTIFICATE

The project entitled “---------” submitted to the Symbiosis Law School,

NOIDA for Managerial Economics as part of Internal assessment is
based on my original work carried out under the guidance of--------------
-----------------------------from-------------------to -----------------. The

research work has not been submitted elsewhere for award of any
degree.

The material borrowed from other sources and incorporated in the

research report has been duly acknowledged.

I understand that I myself could be held responsible and accountable for

plagiarism, if any, detected later on.

Signature of the candidate

Date:
 “Annexure “C”
Scheme/Layout of Research Paper
Contents of project

1) Introduction

The introduction is the first page of the research project itself. It clearly
introduces:-
1. The research topic or research problem,
2. Explains why this topic or problem is an important topic of research,
and
3. Outlines the method of studying or researching that topic or problem.

2) Literature Review

The literature review is often considered the most difficult component of

APA research paper format. A literature review is a comprehensive report
on the existing literature available regarding that topic. When presenting
the literature review, it is necessary to clearly outline both the procedures
undertaken by relevant studies and the findings of each study. Each study
should be discussed in its own paragraph or set of paragraphs.

3) Objectives of the Study

The purpose of research is to discover answers through the application of

scientific procedures. The objective refers to the questions to be answered
through the study. They indicate what we are trying to get from the study
or the expected results / outcome of the study. The objectives of the
study may be one from the following:-
1. To gain familiarity with a phenomenon or to achieve new insights into it
– Exploratory or Descriptive Research.
2. To portray accurately the characteristics of a particular individual,
situation or a group– Descriptive Research.
3. To determine the frequency with which something occurs or with which
it is associated with something else – Diagnostic Research.
4. To test a hypothesis of a causal relationship between variables –
Hypothesis-Testing Research.
4) Hypothesis of the Study (If required)

A hypothesis is an assumption about relations between variables.

Hypothesis can be defined as a logically conjectured relationship between
two or more variables expressed in the form of a testable statement.

5) Research Methodology

The Research Methodology part includes the Type of the study, Population
of the study, the Sample of the Study, Types of data, Tools used for data
collection, and tools applied for data analysis.

6) Results and Discussion

The results section of the research paper is where you report the findings
of your study based upon the information gathered as a result of the
methodology [or methodologies] you applied. The results section should
simply state the findings, without bias or interpretation, and arranged in a
logical sequence.

7) Conclusion

The conclusion is intended to help the reader understand why your

research should matter to them after they have finished reading the
paper. A conclusion is not merely a summary of your points or a re-
statement of your research problem but a synthesis of key points.

8) References
References mean the act of referring, or the state of being referred; as,
reference to a chart for guidance. It is appeared at end of the projects
and must be arranged in alphabetical order by last name of the first
author.
 Annexure-“C”

(RULES FOR BIBLIOGRAPHY/ CITATION/ FOOTNOTING)-:

Part I-:

MODE OF CITATION FOR BOOKS-:

A FOR AN AUTHORED BOOK -:

(i) By a single author:

Name of the author, Title of the book p.no. (if referring to specific page or
pages) (Publisher, Place of publication, edition/year of publication).
E.g. M.P.Jain, Indian Constitutional Law 98 (Kamal Law House, Calcutta,
5th edn., 1998).

(ii) By two authors:

Name of the authors, Title of the book p.no. (if referring to specific page
or pages) (Publisher, Place of publication, edition/year of publication).
E.g. M.P.Jain and S.N. Jain, Principles of Administrative Law 38
(Wadhawa, Nagpur, 2001)

(iii)By multiple authors (more than two):

Name of the first two authors, et.al., Title of the book p.no. (if referring to
specific page or pages) (Publisher, Place of publication, edition/year of
publication).
E.g. Jerry L. Mashaw, Richard A. Merrill, et.al., The American Public Law
System – Cases and Materials 50 (West Group, St. Paul, MN, 1992).
B. FOR EDITED BOOKS
(i) By a single editor:
Name of the editor (ed.), Title of the book p.no. (if referring to specific
page or pages) (Publisher, Place of publication, edn/year).
E.g. Nilendra Kumar (ed.), Nana Palkhivala: A Tribute (Universal
Publishers, Delhi, 2004).
(ii) By two editors:
Name of the editors (eds.), Title of the book p.no. (if referring to specific
page or pages) (Publisher, Place of publication, edn/year).
E.g. S.K. Verma and Raman Mittal (eds.), Intellectual Property Rights: A
Global Vision 38-42 (ILI, Delhi, 2004).
(iii) By more than two editors:
Name of the editors, the first two only, et.al. (eds.), Title of the book
p.no. (if referring to specific page or pages) (Publisher, Place of
publication, edn/year).
E.g. Chatrapati Singh, P.K. Coudhary, et.al. (eds.), Towards Energy
Conservation Law 78 (ILI, Delhi, 1989).
(iv) By, or an auspices of, an organization/institution:
Indian Law Institute, Index to Indian Legal Periodicals (ILI, Delhi, 2002).

Part II-:
MODE OF CITATION FOR ARTICLES/ESSAYS-:
(i) Citation of a paper published in a journal/periodical:
Name of author of the article, title of the essay within inverted commas,
volume number of journal, Name of the journal in abbreviation page
number (year).
E.g. K. Madhusudhana Rao, “Authority to Recommend President’s Rule
under Article 356 of the Constitution”, 46 JILI 125 (2004).
(ii) Citation of a paper published in a case reporter:
P.K. Thakur, “Permissibility of Probation in Offences Punishable with
Minimum Imprisonment” 2 SCJ 26-38 (2002).
(iii) Citation of an essay published in a book edited:
Name of author of the essay, title of the essay within inverted commas, in
Name of the editor(s), title of the edited book page number (publisher,
edition/year).
E.g. R.K. Nayak, “Evolving Global Drugs Law for the 21st Century” in D.C.
Jayasuriya, R.K. Nayak et.at.(eds.), Global Drugs Law 70 (1997).
(iv) Citation of an essay published as a part of a Survey of Law
(e.g. Annual Survey of Indian Law – [an annual publication of the
Indian Law Institute, New Delhi]:
Name of author of the essay, title of the essay within inverted commas,
Volume number name of the survey, page number (year).
E.g.: P.S. Jaswal, “Constitutional Law-I” XXXVIII ASIL 115-150(2002).
(v) Citation of a write-up published in a newspaper/periodical:

Name of the writer, Title of the write-up within inverted commas, Name of
the newspaper, date.
Robert I. Freidman, “India’s Shame: Sexual Slavery and Political
Corruption are Leading to an AIDS Catastrophe”, The Nation, April 8,
1996.

(vi) Citation of an editorial from a newspaper:

Editorial, Title of the Editorial within inverted commas Name of the
newspaper, date.
Editorial, “Short-circuited” The Times of India, August 2, 2004.

(vii) Citing a reference form Encyclopedia:

Edwin R.A. Seligman (ed.), Encyclopedia of the Social Sciences Vol. XV
(The Macmillan Co., NY, 1957).

Part III-:
WEBSITES-:
If the websites gives information as to when it was last modified, the
must be cited, if not one must cite the date of visiting the website.
(i) Information Technology Act 2000, India, available at:
http://www.mit.gov.in/it-bill.asp (Last Modified July 29, 2003).
(ii) Information Technology Act 2000, India, available at:
http://www.mit.gov.in/it-bill.asp (Visited on July 29, 2003).

Part IV-:

UNPUBLISHED WORKS-:
i. Unpublished Research Work (E. g., Dissertation/Thesis):
Name of the Researcher, Title of the dissertation/thesis (Year)
(Unpublished Ph.D. thesis, Name of the University/organization).

ii. Interviews:
Interview with M. Veerappa Moily, Law Minister, The Hindu, July 25, 2004.

iii. Forthcoming publication of a book:

G. Gann Xu, Information for Corporate IP Management (In Press, 2004).

iv. Forthcoming publication of an article:

Shabistan Aquil,, “Classification of Human Rights”, in S.K. Verma,
Shabistan Aquill, et. Al. (eds.), Human Rights: Cases and Material (In
Press, 2004)