PUNE INSTITUTE OF BUSINESS MANAGEMENT

Micro Economics PGDM 2017-19 Batch

Instructor: Dr. Ajit Sane

1.Course Objectives

1. Course Objectives

a. To equip the students of management with time tested tools and techniques of
managerial economics to enable them to appreciate its relevance in decision making.
b. To explore the economics of information and network industries with an
understanding of how economics affect the business strategy of companies in these
industries.
c. To develop economic way of thinking in dealing with practical business problems and
strategies.

2. Text Book

1. Indian Economy By: Ruddar Dutt and KPM Sundharam

2. Managerial Economics By: Dominick Salvatore
3. Macro-Economics By: ML Seth
4. Managerial Economics By: Petersen and Lewis

3. Pedagogy

1. Lectures
2. Caselets and conceptual Discussion
3. Guided and Unguided Sessions

4. Evaluation

Quizzes 20%

Class participation 10%

Group Project/ Presentations 20%

Mid Term Examination 10%

End Semester Examination 40%

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5. Sessions Plan:

Session Topics Hot Points Pre-Readings

No
1 Introduction to Managerial Meaning and nature of Chapter 1 on
Economics economics, The role of introduction from the
economics in decision making, given text book
Difference between economics
and Managerial Economics,
Scope of Managerial Economics
2 Introduction to Managerial Concept of Opportunity Cost Chapter 1 on
Economics introduction from the
given text book

3 Introduction to Managerial Production Possibility Frontier Chapter 1 on

Economics
4 Introduction to Managerial
Economics
5 Introduction to Managerial
Economics
6 Demand Analysis
7 Demand Analysis
8 Supply Analysis
9 Supply Analysis
introduction from the
given text book
Micro and Macro economics Chapter 1 on
introduction from the
given text book
Overview of areas where Chapter 1 on
economics is used in an introduction from the
organization given text book
Meaning of demand, Law of Demand Analysis from
demand, Demand Curve, the text book
Determinants of Demand
Change in demand vs Change in Demand Analysis from
quantity demanded the text book
Meaning of supply, Law of Supply Analysis from
supply, Supply Curve, the text book
Determinants of Supply
Change in supply vs Change in Supply Analysis from
quantity supplied the text book

10 Basic Pricing Mechanism Surplus and Shortage resulting Pricing mechanism

in Price changes from text book

11 Unguided Session Case Study: Power for all: Myth

or reality?

12 Law of Diminishing marginal Total and Marginal Utility Utility Analysis from
Utility the text book

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13 Indifference Curve Analysis Indifference Curves, Budget Indifference analysis

Lines, MRTS from the textbook

14 Indifference Curve Analysis Derivation of the downward Indifference analysis

sloping demand curve from the textbook

16 Elasticity Concepts Price Elasticity of demand,

Income Elasticity of Demand
and Cross Elasticity of Demand

17 Elasticity Concepts Determinants of Price Elasticity

of demand, Impact of the Total
Revenue of a firm
18 Unguided Session Case Study: Pricing game by a
game marketer

19 Demand Forecasting Need and methods of demand

forecasting

20 Production Analysis Production function - Meaning, Production and

Difference between Short Run
and Long Run - Fixed factors
and variable factors
21 Production Analysis Law of Diminishing Returns
Business Organization
Production and
Business Organization

22 Production Analysis Returns to scale Production and

Business Organization

23 Analysis of costs Short Run Cost Analysis Analysis of Costs from

Textbook

24 Analysis of costs Long Run Cost Analysis Analysis of Costs from

Textbook

25 Production and Cost together Link between Production and

Costs

26 Unguided Session Case Study on "Automobile

Industry in India: New
Production Paradigm"
27 Market structures Criteria for classification of Analysis of Perfectly
markets; behaviour of the Competitive Markets
competitive firm
28 Market structures Perfect competition in the Short Varieties of Imperfect
Run and Long Run Competition

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29 Market structures Patterns of Imperfect Oligopoly and

Competition - Monopoly Monopolistic
Competition
30 Market structures Monopolistic Competition and
concept of Product
Differentiation
31 Market structures Oligopoly - Collusive and non-
collusive

32 Game theory Choice under Uncertainty and

Game Theory

33 Game theory Prisoner's dilemma

34 Game theory Applications of Game theory in

Economics

35 Unguided Session Case Study : A New Game to

Reign the skies

36 Market Failure and Need for Concept of Externalities, Public

Government Intervention vs private goods

37 Market Failure and Need for Need for Government

Government Intervention Intervention