PGPM 2019

Blended Web Learning

SPJIMR
Subject: Micro Economics
Credit 1.0 Faculty DR. TULSI JAYAKUMAR Sessions 8 Modules 7

Course Description:
Microeconomics 101 is a course designed to teach the basics of decision making within the
micro-environment of a business. All businesses- big or small, For-Profit or Non-Profit
enterprises- will need to understand the dynamics of this environment, which comprises of
other stakeholders- customers, suppliers, competitors and the government. Each of these
stakeholders (or economic agents) will work to maximize their own benefits, within a given
set of constraints.
At the end of the course, participants will understand consumer preferences and trade-offs,
predict demand and its responsiveness to price- all of which are essential to the firm’s
revenues and hence profits. They will also understand other elements of the firm’s micro-
environment, viz. production decisions and costs and market structures.

Course Objective and Learning Outcomes:

1. To facilitate an understanding of fundamentals of Micro Economics in order to take
effective decisions at the firm level.
2. To understand, analyze and make appropriate choices in business with respect to
pricing, scale of production and competitive strategy.
3. To understand the dynamics of real life situations and make better management
decisions to find optimum solutions.

The basic learning outcome is to understand optimal decision making by the firm.
The Learning outcomes of each lesson are stated at the outset.

Prescribed Text Book/ Other Readings

Mankiw, G.N. (2012), Principles of Economics, Cengage

References
 Hirschey (2009), Managerial Economics, Cengage
 Pindyck, Rubenfeld & Mehta, Microeconomics, Pearson

Other readings
 The Economic Times
 Business World

Pedagogy:
Each of the seven modules will be delivered online. Application exercises at the end of
each module are designed to help understand the real-life application of economic
concepts. Online Quizzes are meant to strengthen such learning. Online Discussions among
participants, moderated by the course facilitator, are designed to encourage reflection and
in-depth learning through multiple views.

The contact sessions are designed to facilitate discussion of key ideas and concepts. These
will involve use of relevant cases to further strengthen learning.

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 PGPM 2019
Blended Web Learning
SPJIMR
Subject: Micro Economics
Credit 1.0 Faculty DR. TULSI JAYAKUMAR Sessions 8 Modules 7

Cases
PRODUCT: W13539-PDF-ENG Hindustan Unilever Ltd.: Creating Shared Value in a
VUCA world

PRODUCT: W14454-PDF-ENG AirAsia India: Clash for the Indian Skies

PRODUCT: W16017-PDF-ENG Agarwal Packers & Movers: Competing for ‘Moving’

Experiences

PRODUCT 9B18M013 APPLE’S IPHONE IN INDIA: RINGING IN NEW FORTUNES?

Alignment of intended Program Goals & Course Learning outcomes:

Sr. Course Learning Teaching and Learning

Programme Learning Objectives
No (CL) objectives Activity
1.1 Social Sensitivity, particularly of the underprivileged - -
Recognition of leadership and administrative issues for - -
1.2
middle and senior management
Comparison of Indian and International social, economic - -
2.1
and business environment.
2.2 Recognition of cross cultural differences. - -
Blended learning,
Classroom lecture, Cases,
3.1 In-depth and specialized knowledge in the functional area. CLO 1, 2, 3
Assignments, quizzes,
end-term exam
3.2 Ability to apply and integrate cross-functional knowledge. - -
Recognition of relevant issues leading to identification of
4.1 critical business problems, including unstructured - -
environment.
Problem identification, definition and selection of
4.2 appropriate models for decision making and problem - -
solving.

Assessment Plan:

Evaluation components
Assignments
campus):

End-term
Quiz (In

Exam:
30%

30%

40%

Objective for Learning Goal

LG1: Value -based, socially sensitive leader of self and others
 LO1: Social Sensitivity, particularly of the underprivileged -
 LO2: Recognition of leadership and administrative issues for middle and senior
management

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 PGPM 2019
Blended Web Learning
SPJIMR
Subject: Micro Economics
Credit 1.0 Faculty DR. TULSI JAYAKUMAR Sessions 8 Modules 7

LG2: Appreciation for distinctiveness of business in India and their interconnectedness

with the global environment
 LO1: Comparison of Indian and International social, economic and business -
environment.
 LO2: Recognition of cross cultural differences.
LG3: Integrative and actionable knowledge of selected domain and functional area
 LO1: In-depth and specialized knowledge in the functional area. xx xx xx
 LO2: Ability to apply and integrate cross-functional knowledge. -
LG4: Analytical and decision making skills in the context of the real world
 LO1: Recognition of relevant issues leading to identification of critical business
problems, including unstructured environment. -
 LO2: Problem identification, definition and selection of appropriate models for
decision making and problem solving.

Evaluation:
COMPONENT WEIGHTAGE
Quiz – On Contact (in campus) 20%
Assignments (Online) – Best 5/11 30%
Group Assignment 10%
End – Term Exam 40%

Evaluation Schedule:

Date of Evaluation
Evaluation Component
Start date End date
Microeconomics: Quiz 1 20/10/2018 24/10/2018
Module I: Application Exercise 21/10/2018 27/10/2018
Microeconomics: Quiz 2 25/10/2018 29/10/2018
Module II: Application Exercise - Part A 31/10/2018 04/11/2018
Module II: Application Exercise - Part B 03/11/2018 07/11/2018
Module II: Application Exercise - Part C 06/11/2018 11/11/2018
Module II: Application Exercise - Part D 09/11/2018 13/11/2018
Module II: Application Exercise - Part E 12/11/2018 18/11/2018
Quiz 3: Consumer Surplus, Producer Surplus And 19/11/2018 25/11/2018
Government Intervention
Module III: Application Exercise - Part A 20/11/2018 26/11/2018
Quiz 4: Elasticity And Its Applications 22/11/2018 27/11/2018
Module III: Application Exercise - Part B 23/11/2018 30/11/2018
Module III: Application Exercise - Part C 27/11/2018 02/12/2018
Quiz 5: Market Forces Of Demand And Supply 04/12/2018 09/12/2018
Quiz 6: Consumer Behavior 07/12/2018 13/12/2018
Quiz 7: Costs 15/12/2018 19/12/2018
Module V: Application Exercise 17/12/2018 24/12/2018
Quiz 8: for Perfect Competition 20/12/2018 25/12/2018
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 PGPM 2019
Blended Web Learning
SPJIMR
Subject: Micro Economics
Credit 1.0 Faculty DR. TULSI JAYAKUMAR Sessions 8 Modules 7

Exercise On Price Discrimination 29/12/2018 02/01/2019

Quiz 9: Monopoly and Price Discriminating Monopoly 01/01/2018 06/01/2019
Group Assignment based on Case: Air Asia India:
Will be informed
Clash for the Indian Skies (on campus)

Session Plan

Module Sess Theme Learning Readings/Reference Chapters

No. No.
 Principles of Economics Text Book
M1 L1
1  Micro and Chapter 1: ‘Ten Principles of
An Introduction to Economics’
Macroeconomics
Economics
 Trade-offs Chapter 2: ‘ Thinking Like an
M1 L2 2
 Markets Economist’
Text Book
How Do Markets  Demand
M2 L1 3 Chapter 4: ‘The Market forces of
work?  Supply
Supply and Demand’
Chapter 5: ‘Elasticity and its
 Elasticity of Demand and
Applications’
How responsive are Supply
M2 L2 4, 5
markets?  Supply, Demand and
Chapter 6: ‘Supply, Demand and
government policies
Government Policies’
How does a consumer  Marginal Utility analysis Chapter 21: ‘The Theory of
M3 L1 6
make choices?  Consumer Surplus Consumer Choice’
 The Production function
 Diminishing Marginal
M4 L1 7 Theory of production Product
 Least Cost Combination of
inputs
Chapter 13: ‘The Costs of
M4 L2 8, 9 Theories of Costs  Types of costs
Production
Text Book
M5 L1 10
What are the types of  Types of market structures Chapter 14:
market structures
‘ Firms in a competitive market’
 Meaning of competition
 Perfect competition
What is a competitive
 Revenue structure of a
market? Text Book
competitive firm Profit
How do firms Chapter 14:
M5 L2 11 maximization in perfect
maximize profit in ‘ Firms in a competitive market’
competition
competitive
environment?  Determination of price and
output
 Derivation of Supply curve
 Emergence of monopolies
Why do monopolies Text Book
12  Revenue structure of a
arise? Chapter 15: ‘Monopoly’
M6 L1 monopoly
How do monopolies  Monopoly versus Text Book
13
make production and competition Chapter 15: ‘Monopoly’
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 PGPM 2019
Blended Web Learning
SPJIMR
Subject: Micro Economics
Credit 1.0 Faculty DR. TULSI JAYAKUMAR Sessions 8 Modules 7

pricing decisions?  Profit maximization of a

monopolist
 Analytics of Price
How do firms discrimination Text Book
M6 L2 14
discriminate prices?  Public Policy towards Chapter 15: ‘Monopoly’
Monopolies
How do firms in real
 Product differentiation Text Book
life compete on the
M7 L1 15, 16  Monopolistic competition Chapter 16:
basis of price & product
differentiation?  Selling Costs ‘Monopolistic Competition’
How do few dominant
 Oligopoly Text Book
firms in real life
 Price Rigidity/ price Chapter 17:
strategically compete?
stickiness ‘Oligopoly’
M7 L2 17, 18
Do the few firms Text Book
 The economics of co-
compete or form Chapter 17:
operation
cartels? ‘Oligopoly’