Cat

alogDescr
ipt
ion

“
Economi
csi
sast
udyofmanki
ndi
ntheor
dinar
ybusi
nessofl
i
fe.
”Sowr
oteAl
fr
ed
Mar
shal
l
,the gr
eatni
net
eent
h-cent
uryeconomi
st,i
n hi
st book,Pr
ext inci
plesof
Economi
cs.Al
thoughwehav
elear
nedmuchaboutt
heeconomysi
nceMar
shal
l
’s
t
ime,t
hisdef
ini
ti
onofeconomi
csi
sast
ruet
odayasi
twasi
n1890,whent
hef
ir
st
edi
ti
onofhi
stextwaspubl
i
shed.I
nrecenty
ear
s,t
her
ear
emanyquest
ionsaboutt
he
economyt
hatmi
ghtspar
kanyone’
scur
iosi
ty.Whyar
eapar
tment
ssohar
dtof
indi
n
MumbaiCi
ty?Whydoai
rl
ineschar
gel
essf
orar
ound-
tr
ipt
icket
?Whyexecut
ive
cl
assai
rf
arei
scost
li
ert
haneconomi
ccl
ass?Whyar
ejobseasyt
ofi
ndi
nsome
y
ear
sandhar
dtof
indi
not
her
s?Whyapackaget
ourcost
slessascompar
edt
o
i
ndi
vi
dualbooki
ngofai
rti
cketandhot
el?Mor
eov
er,asonegoabouthi
s/herl
i
fe,
he/
shemakemanyeconomi
cdeci
sions.Dur
ingst
udentcar
ri
eronehast
odeci
de
howmanyy
ear
stost
ayi
nschool
.Af
terj
oini
ngi
naj
ob,
onehast
odeci
dehowmuch
ofhi
s/heri
ncomet
ospend,how mucht
osav
e,andhow t
oinv
esthi
s/hersav
ings.
Whenr
unni
ngasmal
lbusi
nessoral
argecor
por
ati
on,andonewi
l
ldeci
dewhat
pr
icest
ochar
gef
orhi
s/herpr
oduct
s.Theeconomi
ctool
s,whi
chwi
l
lbedi
scussedi
n
t
hiscour
se,wi
l
lgi
vey
ouanew per
spect
iveonhow bestt
omaket
hesedeci
sions.
Fol
l ng t
owi en economi
c pr
inci
ples can be appl
i
ed i
n manyofl
i
fe’
s si
tuat
ions,
whet
hert
hef
utur
efi
ndsy
our
eadi
ngt
henewspaper
,runni
ngabusi
ness,
orsi
tt
ingi
n
t
hewor ace.Theseeconomi
kpl cpr
inci
plesar
e(i
)manager
smakedeci
sions,(
ii
)
deci
si
onsar
ebet
weenal
ter
nat
ives,(
ii
i)al
ter
nat
iveshav
ecost
sandbenef
it
s,(
iv)
deci
si
ongoali
stoaddv
aluet
othef
ir
m,(
v)v
aluei
smeasur
edbypr
ofi
tsorexpect
ed
pr
ofi
ts,
(vi
)rev
enuedependsondemandf
ort
hepr
oduct
,(v
ii
)maxi
mum pr
ofi
tent
ail
s
mi
nimum cost
,(v
ii
i)st
rat
egymustbeconsi
stentwi
thmar
ket
,(i
x)gr
owt
hrequi
res
r
ati
onal
inv
est
mentdeci
sions,
and(
x)l
egal
andet
hical
behav
iourl
eadst
osuccess.

TextBooks
1.Manager
ialEconomi
cs,H.Cr
aigPeter
sen,W.Chri
sLewis&Sudhi
rK.Jai
n,4e,
PearsonEducat
ion.
2.Manageri
alEconomi
csandBusi
nessStr
ategy
,Mi
chael
R.Bay
e,McGr
aw-
Hil
l.

Ref
erenceBooks
1.Manager i
alEconomi
cs:Pri
nci
ples and Worl
dwi
de Appl
icat
ions,Domi
nick
t
h
Salv
ator
e,7 Edi
ti
on,
Adapt
edVersi
on, Ox
for
dUniv
ersi
tyPr
ess

2.Manager
ialEconomi
cs:Theor
y,Appl
i
cat
ionsandCases,
W.Br
uceAl
l
en,
Kei
th
 Weigel
t,Nei
lDoher
ty and Edwi
n Mansf
i d,7th Edi
el ti
on,W.
W.Nor
ton &
Company.

3.Manager
ial
Economi
cs,
S.Pr
ust
y,PHI
.

4.Manager
ial
Economi
cs,
Joel
Dean,
PHI

5.Manager
ial
Economi
cs,
Mar
kHi
rcshey
,10e,
Thomson.

Cour
seCont ent
Uni
tI:Basi
cconcept
sofManager
ial
Economi
cs 6l
ect
urehour
s

I
mportanceoft hecour
seforManagers,TheCir
cularFl
owofEconomi cActi
v i
ty,
Basi
cEconomi cConceptssuchasMar gi
nalUt
il
it
y,Margi
nalCost,Mar
ginalRevenue,
Margi
nalPrincipl
e,I
ncr
ementalPr
inci
ple,
Opport
unityCost
,PresentDi
scounted
Val
ue,CalculusandManageri
alEconomics.

Uni
tII
:Suppl
y-
DemandAnal
ysi
sandConsumerBehav
ior 12l
ect
urehour
s

TheMar ketf orcesofSuppl yandDemand: conceptofDemandandSuppl y,

deter
mi nantsofDemandandSuppl y
,pr i
ceef f
ect,i
ncomeef f
ectandsubst i
tut i
on
eff
ect;equili
brium pr ice,Elasticit
yandi tsappl icati
ons: pri
ceelasti
cit
yofDemand&
i
tstypes,income&cr osspr i
ceelastici
tyofDemand, determinantsofpr i
ceel astici
ty
ofDemandandSuppl y,Rel at
ionshipamongpr i
ceelasti
city,t
otalr
evenue, aver age
rev
enueandmar gi
nal r
ev enue, Demandanal ysisandest i
mation:mar ketsurv eys
andmar ketexper i
ment s,regressionanal ysis,trendanalysis,
exponent i
al
smootheni ng,Thet heor yofconsumerchoi ce: indi
ff
erencecur veanditspr oper t
ies,
budgetconst raint,consumer ’
sopt i
mal choi ce,deri
vingthedemandcur ve.

Uni
tII
I:Pr
oduct
ionAnal
ysi
s,CostofPr
oduct
ion,
andPr
ofi
tAnal
ysi
soft
heFi
rm
8l
ect
urehour
s
Theoryofpr oducti
oni nshor t-
run: amongt otal,averageandmar ginalproductivi
tyof
l
abour, Lawofdi minishingreturns,andpr ofitmaxi mi zati
on,Theoryofpr oducti
onin
l
ong-run: i
soquantcur ve,i
socostl ine, l
eastcostpr oduct i
on,Economi cregionof
production, expansionpat h,andretur nstoscal e,Typesofcost sinshort-r
un: f
ixed,
vari
able,total,average, marginal,
break- evenanal ysi
s, shut-
downpoi nt,Typesof
costsinl ong-run:total,
av er
age, mar ginal,andi nter-
relati
onships,Compar isonand
i
nter-
relationships,relationbetweenpr oduct ionandcost ,I
dentifydif
ferentcosts
fr
om thebal ancesheetofanycompanyandi tsimpl i
cationonpr ofi
t,Profi
t
maximi zationandsust ainabil
it
ybyf ol
lowinget hicalpracti
ce

UnitI
V:Mar ketStr
uctures(PerfectCompet iti
on, Monopoly
, Monopol i
sti
cCompet i
tion)
6lect
urehour s
Perfect
ly compet i
tiv
e mar ket[ characteri
sti
cs,suppl y and demand cur ve,pr ofi
t
maxi mizi
ngpr icedeterminati
oni nshort -
runandl ong-r
un,effectsoft axesonpr ice
andout put ,consumersur plus,pr oducersur plus,marketeff
iciency,solveprobl
ems,
Monopol ist i
cmar ket:characteri
st i
cs,suppl yanddemandcur ve,profi
tmaxi mizing
pri
cedet er minati
oninshor t-
runandl ong-run,deadweightlossundermonopol y,
ant i
-
tr
ust legi slati
on,pr oduct differentiat
ion adv ert
isi
ng and br and names,sol ve
problems.
Uni
tV:
Oli
gopol
yandPr
ici
ngpr
act
ices 8l
ect
urehour
s

Oligopolymar ket
: duopoly,barrier
st oentry,pri
cer i
gidi
tywi thoutcol l
usion, i
.e.
KinkedDemandCur veModel ;Cournot’smodel ofduopol ywi t
houtcol lusion,eff
ici
ent
fi
rm anddomi nantfir
m, perfectcollusi
on( cartels),
Gamet heor eti
cappr oachest o
oli
gopoly; gamet heory: anobj ecti
ve,twoormor eplayers,strategi
esorchoi ces,
costsandbenef i
ts;economi csofi nformation:cost sandbenef it
sofi nformat i
on,
mor alhazards;Prici
ngpr acti
ces:mar k-uppr i
cing,multipleproduct s,price
di
scr i
mination,accessfees, bundling,etc.