UNIGLOBE COLLEGE

(Pokhara University Affiliate)

Masters of Business Administration (MBA) (Finance)
Course : ECO 511 Economic Analysis for Business
Term: Trimester –I; 2020
Credits: 3(48 Contact hours=32 Lectures×1.5 hrs)
Faculty: Bidur Gautam, 9851002202, gautambidur16@gmail.com

1. Core Objective of the Course

The purpose of the course is to provide exposure to the basic economic concepts, tools and theories of
microeconomics with the intention of enabling the participants in applying these fundamental theories and
tools in business managerial decision-making.

2. Details of Content and Session Plan

Topics for Duratio

S.N. Discussion n Reading references
1 Introduction To Economic Analysis For 2 (i)Salvatore
Business Lectures (ii) Hirschey & Pappas
Introduction to Business Economics; Corporate
Decision Making and Public Policy Design.
Fundamental Principles of Economics:
Microeconomics, Macroeconomics; Positive and
Normative Analysis; Importance and Use of
Business Economics.
2 Supply and Demand, Market and Welfare 4 Lecture (i)Mankiw
Market Mechanism: The Interplay of Demand ii)Salvatore
and Supply; Elasticity of Demand and Supply (iii)Kutsoyiannis
and Its Application, Consumer and Producer (iii) Hirschey & Pappas
Surplus; Market Efficiency and Effect of Floor
and Ceiling Prices, and Taxation on Buyers
and Sellers Including Effect of tax on
International Trade.
3 Demand Forecasting 2 (i) Salvatore
Demand Forecasting Techniques and Lectures (ii)Peterson and Lewis
Applications. iii) Hirschey & Pappas

4 Theory of Production 4 (i) Salvatore

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 Meaning of Production and Production Lectures (ii)Koutsoyiannis
Function, Production with One Variable Input (iii) Peterson and Lewis
And Optimal Use of the Variable Input; (iv) Hirschey & Pappas
Production with Two Variable Inputs:
Isoquants, MRTS; Perfect Substitute and
Complementary Inputs; Isocosts; Returns to
Scale and Returns to Scope; Production
Analysis with Calculus (Constrained Output
Maximization, Constrained Cost Minimization
And Profit Maximization)
5 The Theory of Consumer Choice 4 (i)Koutsoyiannis
Consumer Preference and Choice; Lectures (ii)Mankiw
Indifference Curves; Marginal Rate of (iii) Hirschey & Pappas
Substitution; Budget Constraint; Optimization:
What Consumer Chooses? Income and Price
Effect, (Decomposition of Price Effect on
Income Effect and Substitution Effect)
;Derivation of Demand Curve
6 Theory of the Firm 5 (i) Koutsoyiannis
Introduction of Firm and Its Goal; Profit Lectures (ii) Hirschey & Pappas
Maximization; Sales Revenue Maximization;
Agency Theory; Managerial Utility
Maximization ;Corporate Growth
Maximization; Behavioral Theory (Cyert and
March).

7 Short and Long Run Costs 2 Lecture (i) Salvatore

(ii)Koutsoyiannis
(iii)Peterson and Lewis
8 Pricing Theory 7 (i)Koutsoyiannis
(I)Market Forms: Perfect and Imperfect Lectures (ii)Salvatore
Competition Market; Pricing Under Perfect (iii) Hirschey & Pappas
Competition, Monopoly, Monopolistic
Competition, and Oligopoly; Cartel and Price
Leadership Model, Kinked Demand Curve
Model.
(Ii)Pricing Practices: Cost-Plus Pricing,
Incremental Pricing, Multiple Product Pricing,
Transfer Pricing.

9 The Economics of Public Sector 2 (i) Mankiw

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 Externalities and Market Inefficiency: Cases of Lectures
MarketFailure;Private Solutionsto
Externalities; Public Policies Toward
Externalities; Public Goods and Common
Resources: Public Goods, and Free-Rider
Problems; Common Resources: Tragedy of the
Commons.

3. Teaching Methods
 Lectures and discussions
 Case studies
 Assignments
 Presentations by students
 Project Work
 Quizzes

4. Evaluation Criteria

The evaluation of the students will be made on two criteria: Internal Evaluation will carry 60%
weight, and 40% weight will be given to External Examination.

Internal Evaluation: This is a continuous evaluation process which carries 60 % marks.

Assuming it as 100%, the bases of Internal Evaluation will be as follows:
I. Assignments 10%
II. Tests 10%
III. Presentation 5%
IV. Quizzes 5%
V. Mid Term Examinations 20%
VI. Project Work 5%
VII. Pre-Board Examinations 30%
VIII. Attendance 10%
IX. Enthusiastically positive role in discussion and participation 5%

Assignments: Each student must submit the assignments individually. The stipulated time for
submission of the assignment will be seriously taken as one of the major criteria of the
evaluation.

Tests: A series of tests will be conducted. Questions will be set on the specified topics.

Presentation: Student will be divided into groups and each group will be provided topics for
presentation and it will be evaluated individually and group wise as well.

Quizzes: Quizzes will consist of objective questions.

Mid-Term Examinations: It is a written examination and the questions will be set covering the
topics as taught in the sessions. The question model, full marks, time and others will be as per the
decision of the college management

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 Project Work: Project work must be prepared in a standard format and must contain at least 5
pages. It is group work. The stipulated time for submission of the paper will be seriously taken as
one of the major criteria of the evaluation.

Pre-Board Examinations: It is also a written examination and the questions will be set covering
all the topics in the session of the course. The question model, full marks, time and others will be
as per the standard of the university.

Attendance: Regular attendance and participation in class discussion is required. Eighty percent
class attendance is mandatory for the students to enable them to appear in the End-Term
examination.

Enthusiastically positive role in discussion and participation: Students are expected to

participate actively and positively in classroom.

External Examinations: At the end of the trimester, external examinations will be conducted by
the university.

Strict Notice: Each student must secure 60% marks with 80% attendance in internal evaluation
in order to qualify the End-Term Examinations. Failing to get such score will be given NOT
QUALIFIED (NQ), and the student will not be eligible to appear the End-Term examinations.

5. Basic Reading Texts

 Mankiw, N.Gregory (2015). Principles of Economics, 7th edition. Indian Reprint. CENGAGE
Learning India Pvt. Ltd.
 Salvatore, Dominick. (2006). Managerial Economics in a Global Economy, 4th edition. (Indian
Ed.).Thomson, South-Western College Publishing
 Peterson, H.C., and W.C. Lewis (2004). Managerial Economics. Pearson Education (India).
 Hirschey, M. and Pappas, James L. (1992). Fundamentals of Managerial Economics. European
Edition. The Dryden Press
 Koutsoyiannis, A. (1989).Modern Microeconomics, 2nd edition .ELBS (English language Book
Society)

6. Other References
 Hirschey, M.(2007):Economics for Managers (Indian edition).Thompson, South-Western
 Thomas, C. R., Maurice, S.C. & Sarkar, S. (2010).Managerial Economics, 9th edition. New
Delhi: Tata McGraw Hill Education Private Limited
 Suma, Damodaran: Managerial Economics, Oxford, 2007

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