Hours/

Subject Hours/
Subject Sessions Semester Credits Subject Type
Code Week
(14 weeks)*

Lecture 2
Practical
28
Economics Tutorial
General Elective
Studio 2.5
( Mandatory)
Work
Studio
Practice
Self-Study
*Teaching sessions to be planned for 14 weeks, excluding end term examination week.

SUBJECT AIM

 To equip the students with basic understanding of Microeconomics and

Macroeconomics
 To provide illustrative examples of application of these concepts in real business
situations
 To make the students understand as to how these concepts can be applied in
managerial decision making.

LEARNING OUTCOMES OF THE SUBJECT

Knowledge

 Basic understanding of the fundamental concepts of Micro and Macroeconomics and

application of these concepts to the managerial decision making problems.
 After studying the subject, the student should be able to describe the fundamental
concepts and principles related to applied microeconomics, macroeconomic and the
inter-relationship of the economic principles with business decision making.

Skill

 To develop key analytical skill of evaluating and analyzing business operations of an

organization using key economic concepts of consumer and producer behaviour, cost
theory, production theory and market structure.
 To develop the skill to solve problems related to price discrimination, elasticity, cost,
price and output determination under different market structures.

Synthesis

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  The students would be able to differentiate, organize and analyse business models
based on principles of economics and to make rational decisions in calculating and
evaluating business proposals and projects.
 The student would be able to effectively use concepts of elasticity, consumer surplus,
cost, revenue and production in analyzing situations and taking economic decisions.
 The students would be able to do competitor analysis and formulate a better competition
strategy by applying knowledge and skills acquired by understanding of different market
structures as well as key macroeconomic indicators.

CONTENT

Sl.No. Topic Detailing Duration

(Hours)
1 Introduction to Introduction to Managerial Economics (why study 2
Managerial Economics), Business decisions & Economic
Economics analysis, Micro vs Macro Economics.

2 Concept of Utility Cardinal Utility Vs Ordinal Utility, Diminishing 3

marginal utility, indifference curves. Consumer
Surplus. Application of Consumer surplus in
building competitiveness.

3 Consumer Theory of Demand, Determinants of Demand, 3

Behavior and Consumer equilibrium, Price Mechanism.
Demand Theory Derivation of individual demand curve, market
demand, change in demand and shift in demand
through demand curve. Introduction to demand
forecasting.

4 Elasticity of Market demand (for a firm and for the economy), 2

Demand elasticity of demand, determinants of price
elasticity, Cross elasticity, income elasticity,
promotional elasticity

5 Assignment 1: Quiz based on the learning from consumer and 1

producer behaviour including demand/elasticity analysis.

6 Production Introduction to production function, short run 3

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 Function (and long run, isoquants and isocosts, Law of
Variable Proportions, Returns to Scale, budget
constraints and budget line.

7 Theory of Cost & Different types of costs, Cost function, breakeven 3

Concept of analysis. Short-run and long-run cost curves.
Revenue and Concept of Revenue, Calculation of Profit and
Profits concept of Profit Maximization

8 Market structures, Introduction to Market Structure, Spectrum of the 3

Price & Output Market structure. Concept of Normal profit and
decisions super-normal profit.
Perfect competition, monopolistic competition
and oligopoly, and Monopoly, Price and Output
determination under different market structures,
price discrimination. Closing down point.

9 Assignment 2: Group presentation/Seminar on building 2

competitiveness and profit maximization for different firms under
different market structures

10 Basic Concept of National Income, GDP, GNP, NDP, 4

macroeconomics NNP, Economic Growth, Per-capita income,
for managers Inflation and its impact on both consumers and
producers. Tools of Fiscal and Monetary Policy
in India and its impact both on producers and
consumers.

11 Latest Economic Seminar on Contemporary economic 2

Developments developments (National and international)

LEARNING AND TEACHING METHODS

 Lectures, Seminars,
 Group discussions
 Industry interaction

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NATURE OF ASSIGNMENTS

Assignment 1: Quiz based on the learning from consumer and producer behaviour including
demand/elasticity analysis. ( 1 hr)

Assignment 2: Group presentation/Seminar on building competitiveness and profit

maximization for different firms under different market structures ( 2 hrs)

EVALUATION CRITERIA

 Content, Individual Understanding, Group Coordination and Presentation

 Application of theoretical concepts in business situations pertaining to the fashion
industry (it may include manufacturing, retail, ecommerce, or even consulting)

EVALUATION MATRIX

End Term
Mid-Term/ End-Term/
Evaluation Total
Mid-Module Assessment End-Module Assessment
(Exam/Jury)
30 30 40 100

REFERENCE MATERIAL

 Richard G. Lipsey (Author), Christopher Ragan (Author), Paul Storer (Author),

Microeconomics 13th Edition

 Dwivedi, D. N. Managerial economics. Vikas Publishing House, 1980.

 McGuigan, James, Charles Moyer, and Fredrick Harris, Managerial Economics;
Applications, Strategy and Tactics, 13 th Edition, Cengage, 2014
 Keat, Paul and Philip Young, Managerial Economics; Economic Tools for Today’s
Decision Makers 7 th Edition, Pearson, 2014
 Pindyck, Robert and Daniel Rubinfeld, Microeconomics 8 th Edition, Pearson, 2013
 Goolsbee, Austan, Steven Levitt, and Chad Syverson, Microeconomics 2 nd Edition,
MacMillan, 2016
 http://www.acdcecon.com/econ-teachers-resources, Macro & Micro-Economics Module

INFRASTRUCTURE REQUIREMENT

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No additional infrastructure apart from the general one such as classroom with projector,
computer set, white board etc would be required

EQUIPMENT/TOOLS/MATERIAL

No additional equipment apart from the existing ones such as mentioned above would be
reuqired

CURRICULUM DEVELOPMENT TEAM

 Dr. B.B. Jena ( Anchor)

 Dr. Shiv Kumar Belli ( Co-Anchor)
 Mr. Kislay Kashyap
 Ms. Jagriti Mishra

© Year 2018 National Institute of Fashion Technology