Managerial Economics

1.1 Course Number: MT5101

1.2 Contact Hours: 40 Hours, Credits: 8

1.3 Semester-offered: Even Semester (January- June)

1.4 Prerequisite: None

1.5 Syllabus Committee Member: Dr. Sanjay Kumar Kar & Dr. Debashish Jena

2 Objective:

➢ Understand and apply supply and demand analysis to relevant economic issues.
➢ Apply marginal analysis to the “firm” under different market conditions.
➢ Understand the causes and consequences of different market structures.
➢ Analyze and propose solutions to the basic problems faced by firms using knowledge of
consumer behavior, production costs, market structures and the macroeconomic
environment.
➢ Understand the basic analytical skills, insights and managerial decision-making tools
required for sound business decisions.

3 Course Content:

Unit-wise distribution of content and number of lectures

Unit Topics Sub-topic Lectures

Introduction Broad introduction to the subject and nature, and significance

1 and Demand of Managerial Economics; Demand Analysis: Concept of 06
Analysis price, income and elasticity of demand

Estimating, testing and interpreting regression model, Using

Demand
2 regression model to estimate demand equation, 06
Estimation and
Understanding the concepts, importance and applications of
Forecasting
different forecasting techniques
The Theory Theory of Production: Cost and Revenue Analysis, Market
3 and Estimation Structure: different types of market, price and output 06
of Production determination and Market with Asymmetric Information
Concepts of monopolistic and oligopoly Competition, Pricing
Pricing and
4 and output decisions of monopolistic and oligopoly firm, 06
Output
Effect of non-price factors on products and services of
Decisions
monopolistic and oligopoly firms
Game Theory and Competitive Strategy, Externalities and
5 Competition & 06
Public Goods, Risk and Uncertainty; Decision making under
Uncertainties
uncertainty
 A group of students will be allocated a project relevant to the
6 Project Work course, where they can apply their understanding. Project will 10
be a part of course evaluation.
Total 40

4 Readings

4.1 Textbooks:

➢ Micro Economics: Pindyck, Rubinfeld and Mehta (referred as ME-PRM).

4.2 Reference Books:

➢ Levy, H & Sarnat M: Capital Investment and Financial Decisions, Prentice Hall.
➢ Investments, Bodie, kane and mohanty, McGraw Hill.

5 Outcome of the Course:

On the completion of this course the participants are expected to:

➢ Application of the tools and techniques using empirical data would be a frequent practice
during the course. Major emphasis is laid on applications of excel spreadsheet modeling in
financial decision making.
➢ To enrich the learning process through exposure to real life cases / business situations and
live projects.