FORE School of Management

Course Outline
Programme: PGDM (FMG-27/FM1/IMG12)

Name of the Course: Managerial Economics Credit: 3.0

Term: 1 Academic Year: 2018-19
Faculty: Dr Subhasis Bera (FMG27/FM1) Office Contact No.: 011-41242-468
Dr Basant Potnuru (IMG12) Office Contact No.: 011-41242514

Email: sbera@fsm.ac.in; basant@fsm.ac.in

Introduction
The present dynamics of economic environment requires efficient use of information in time to make the
managerial decision making more effective. This calls for better understanding of the business as well as
economics and use of analytical tools. In line with this, Managerial Economics course is designed to provide
students a basic understanding of the economic theory and analytical tools that can be used in decision
making problems. Successful completion of the course helps to build up an ability to apply the analytical
tools in decision making.
A prerequisite of this course is knowledge of basic mathematics. This helps to understand and enhance the
ability to capture the finer aspects of decision making. Among the topics covered in the course are: price
determination in alternative market structures, demand theory, production and cost functions, and
decision making under uncertainty. In addition, the course will provide a basic introduction to econometric
analysis and its role in managerial decision making.

Objectives
 To apprise the students of tools that a manager can use in decision making for the business world.
 To understand the various factors relevant for decision making both from the supply side and from
the demand side.
 To understand the practices and strategies of companies in the various types of market.

Indicative Readings:
Text Book:

 Baye & Prince: Managerial Economics and Business Strategy, 8e, McGraw Hill, 2014

References
 Dominick Salvatore, Principles of Microeconomics, 5th Edition (International Version), Oxford
University Press (OUP), 2014.
 Pindyck R.S, Daniel L. Rubinefeld, Prem L. Mehta: Microeconomics, 7 th edition, Pearson
Publication,2011
 Besanko, Braeutigam: Microeconomics, 4e, Willey, 2014
 Keat Paul G, Philip K Y Young, Sreejata Banerjee : Managerial Economics: Economic Tools for Today’s
decision Makers, 6th edition, Pearson Publisher, 2011
 Allen, Weigelt, Doherty, Mansfield: Managerial Economics, 7 th edition, Viva-Norton Student edition,
2013
Managerial Economics 1
 Hirschey Mark: Managerial Economics, 12e, India Edition, CENGAGE Learning, 2013
 Salvator, D; S. Rastogi: Managerial Economics: Principles and Worldwide Applications, 8th Edition,
Adapted Version, Oxford, 2016
 Christopher R Thomas and S Charles Maurice, Managerial Economics: Concepts and Applications,
10th Edition, The McGraw-Hill Companies.

Pedagogy

The teaching pedagogy would consist of lectures, Quiz, Assignments.

Evaluation Component and weightage:

Quiz (I and II) : 20
Mid Term : 20
Class Assignment : 10
Class Participation : 10
End Term : 40
________
Total :100

Session Plan
Sl
Session Theme Reading Learning Outcome
No.
Chapter-1: Hirschey Mark: Managerial Economics, 12 e,
India Edition, CENGAGE Learning, 2013,
Chapter-1: Salvator D; Rastogi: Managerial Economics: What is Managerial
Introduction to Principles and Worldwide Applications, 8th Edition, Economics and its
1
Managerial Economics Adapted Version, Oxford, 2016 importance in decision
Chapter 1: making
Thomas & Maurice, Managerial Economics, McGraw
Hill, 10th ed.
Importance of Managerial Chapter-1: Salvator, D; R Srivastava: Managerial
How to select a business
2 Economics: Economics: Principles and Worldwide Applications,
project
Key concepts 6th Edition, Adapted Version, Oxford, 2010
Chapter- 3: Baye & Prince: Managerial Economics and
Business Strategy, 8e, McGraw Hill, 2014
Chapter -3: Pindyck R.S, Daniel L. Rubinefeld, Prem L.
Theory of Consumer Mehta: Microeconomics, 7th edition, Pearson
3 How a consumer behaves
Behaviour-Part 1 Publication,2011,
Chapter 2 & 5:
Thomas & Maurice, Managerial Economics, 10th ed.
Hand Note
Chapter-4: Hirschey Mark: Managerial Economics, 12 e,
India Edition, CENGAGE Learning, 2013, Understanding the choice
Theory of Consumer Chapter 2, 3 & 5: of a consumer hence the
4
Behaviour-Part-2 Dominick Salvatore, Principles of Microeconomics, 5th demand for specific
Edition (International Version), OUP, 2014 goods
Hand Note

Theory of Demand : Chapter- 2: Baye & Prince: Managerial Economics and Determinants of demand
5
Properties Business Strategy, 8e, McGraw Hill, 2014 and properties of demand

Managerial Economics 2
 Chapter-4: Hirschey Mark: Managerial Economics, 12 e,
India Edition, CENGAGE Learning, 2013
Chapter-3: Salvator D; Rastogi: Managerial Economics:
Principles and Worldwide Applications, 8th Edition,
Adapted Version, Oxford, 2016
Chapter 5 &6: Thomas & Maurice, Managerial
Economics, 10th ed.
Chapter-4: Hirschey Mark: Managerial Economics, 12 e,
India Edition, CENGAGE Learning, 2013,
Chapter-3: : Salvator D; Rastogi: Managerial
Economics: Principles and Worldwide Applications,
Theory of Demand: Responsiveness of
8th Edition, Adapted Version, Oxford, 2016
Responsiveness of consumer due to change
6 Chapter 4 & 5: Dominick Salvatore, Principles of
Customer, Concept of in determinants of
Microeconomics, 5th Edition (International Version),
Elasticity and Application demand
OUP, 2014
Chapter 5: Dominick Salvatore, Principles of
Microeconomics, 5th Edition (International Version),
OUP, 2014
Chapter-3: Salvator D; Rastogi: Managerial Economics:
Principles and Worldwide Applications, 8th Edition,
Adapted Version, Oxford, 2016 and
Chapter-5: Hirschey Mark: Managerial Economics, 12 e,
India Edition, CENGAGE Learning, 2013
Theory of Demand : Chapter 6: Thomas & Maurice, Managerial Economics,
7 How to estimate demand
Estimation 10th ed.
Chapter 4 & 7: Thomas & Maurice, Managerial
Economics, 10th ed.
Chapter 5: Managerial Economics, 8th edition,
Dominick Salvatore and S. K. Rastogi, Oxford Higher
Education.
Chapter- 5: Baye & Prince: Managerial Economics and
Business Strategy, 8e, McGraw Hill, 2014
Chapter-7: Hirschey Mark: Managerial Economics, 12 e,
How production of goods
India Edition, CENGAGE Learning, 2013
works?
Chapter-7: Salvator D; Rastogi: Managerial Economics:
8 Theory of Production Understanding the
Principles and Worldwide Applications, 8th Edition,
various types of
Adapted Version, Oxford, 2016
production process
Chapter 7: Dominick Salvatore, Principles of
Microeconomics, 5th Edition (International Version),
OUP, 2014
Chapter-6: Keat Paul G, Philip Y Young, Sreejata
Banerjee: Managerial Economics: Economic Tools for
Today’s Decision Makers, 6th edition, Pearson How production process
Publisher, 2011 and changes in short run and
Theory of Production:
9 Chapter-7: Salvator D; Rastogi: Managerial Economics: long run.
Manager’s Problem
Principles and Worldwide Applications, 8th Edition, Whether to continue or
Adapted Version, Oxford, 2016 not?
Chapter 3, 8: Thomas & Maurice, Managerial
Economics, 10th ed.
Chapter-8: Hirschey Mark: Managerial Economics, 12 e,
India Edition, CENGAGE Learning, 2013
Types of cost associated
Chapter-8: Salvator D; Rastogi: Managerial Economics:
Theory of Cost: with the production.
10 Principles and Worldwide Applications, 8th Edition,
Manager’s Problem Does a manager requires
Adapted Version, Oxford, 2016
to minimise cost always?
Chapter 9: Thomas & Maurice, Managerial Economics,
10th ed.

Managerial Economics 3
 Chapter 7: Dominick Salvatore, Principles of
Microeconomics, 5th Edition (International Version),
OUP, 2014
Chapter 3, 8, 9 & 10: Thomas & Maurice, Managerial
Economics, 10th ed.
Chapter 8: Dominick Salvatore, Principles of
Microeconomics, 5th Edition (International Version),
OUP, 2014
Chapter-8: Hirschey Mark: Managerial Economics, 12 e,
India Edition, CENGAGE Learning, 2013
Chapter-7:Keat Paul G, Philip Y Young, Sreejata Various types of cost and
11 Analysis of Cost
Banerjee: Managerial Economics: Economic Tools for their estimation
Today’s Decision Makers, 6th edition, Pearson
Publisher, 2011, +Hand out
Chapter-8: Keat Paul G, Philip Y Young, Sreejata
Generic Market Banerjee: Managerial Economics: Economic Tools for What is market? How
12
Equilibrium Today’s Decision Makers, 6th edition, Pearson market operates
Publisher, 2011, + Hand out
Chapter- 8: Baye & Prince: Managerial Economics and
Business Strategy, 8e, McGraw Hill, 2014
Chapter-10: Hirschey Mark: Managerial Economics, 12
e, India Edition, CENGAGE Learning, 2013
Chapter -8: Pindyck R.S, Daniel L. Rubinefeld, Prem L.
Mehta: Microeconomics, 7th edition, Pearson
Most ideal market for an
Publication,2011 and
Analysis of Competitive economy.
13 Chapter-9: Salvator D; Rastogi: Managerial Economics:
Market Do this market really
Principles and Worldwide Applications, 8th Edition,
exist?
Adapted Version, Oxford, 2016
Chapter 11: Thomas & Maurice, Managerial Economics,
10th ed.
Chapter 9: Dominick Salvatore, Principles of
Microeconomics, 5th Edition (International Version),
OUP, 2014
Chapter- 8: Baye & Prince: Managerial Economics and
Business Strategy, 8e, McGraw Hill, 2014
Chapter-12: Hirschey Mark: Managerial Economics, 12
e, India Edition, CENGAGE Learning, 2013
Chapter-8: Keat Paul G, Philip Y Young, Sreejata
Banerjee: Managerial Economics: Economic Tools for
Today’s Decision Makers, 6th edition, Pearson
Publisher, 2011 and
Chapter-9: Salvator D; Rastogi: Managerial Economics:
Principles and Worldwide Applications, 8th Edition, How market behaves
14 Monopoly Market Adapted Version, Oxford, 2016 when there is a single
Chapter 12 & 13: Thomas & Maurice, Managerial producer
Economics, 10th ed.
Chapter 10: Dominick Salvatore, Principles of
Microeconomics, 5th Edition (International Version),
OUP, 2014
Chapter 14: Thomas & Maurice, Managerial Economics,
10th ed.
Chapter 10: Dominick Salvatore, Principles of
Microeconomics, 5th Edition (International Version),
OUP, 2014
Chapter- 8: Baye & Prince: Managerial Economics and What happen to the
Analysis of the Markets
Business Strategy, 8e, McGraw Hill, 2014 market when many
15 close to the real world
Chapter-13: Hirschey Mark: Managerial Economics, 12 producer produces
market(Monopolistic
e, India Edition, CENGAGE Learning, 2013 similar product
Managerial Economics 4
 Competition Market)- Chapter-9 Salvator D; Rastogi: Managerial Economics:
Part-1 Principles and Worldwide Applications, 8th Edition,
Adapted Version, Oxford, 2016 and
Chapter-9: Keat Paul G, Philip K Y Young, Sreejata
Banerjee : Managerial Economics: Economic Tools for
Today’s decision Makers, 6th edition, Pearson
Publisher, 2011
Chapter 11: Dominick Salvatore, Principles of
Microeconomics, 5th Edition (International Version),
OUP, 2014
Chapter- 8: Baye & Prince: Managerial Economics and
Business Strategy, 8e, McGraw Hill, 2014
Chapter-13: Hirschey Mark: Managerial Economics, 12
Analysis of the Markets e, India Edition, CENGAGE Learning, 2013
close to the real world Chapter-9: Salvator D; Rastogi: Managerial Economics: How advertisement plays
16 market(Monopolistic Principles and Worldwide Applications, 8th Edition, a role in a monopolistic
Competition Market)- Adapted Version, Oxford, 2016 and competitive market
Part-2 Chapter-9: Keat Paul G, Philip K Y Young, Sreejata
Manerjee : Managerial Economics: Economic Tools for
Today’s decision Makers, 6th edition, Pearson
Publisher, 2011
Chapter- 9: Baye & Prince: Managerial Economics and
Business Strategy, 8e, McGraw Hill, 2014
Chapter-13: Hirschey Mark: Managerial Economics, 12
e, India Edition, CENGAGE Learning, 2013
Chapter-9: Salvator D; Rastogi: Managerial Economics:
Analysis of the Markets Principles and Worldwide Applications, 8th Edition, What happen in the
close to the real world Adapted Version, Oxford, 2016 and market when few firms
17
market (Oligopoly Chapter-9: Keat Paul G, Philip Y Young, Sreejata produces the similar
Market),Part-1 Banerjee: Managerial Economics: Economic Tools for product
Today’s Decision Makers, 6th edition, Pearson
Publisher, 2011
Chapter 11: Dominick Salvatore, Principles of
Microeconomics, 5th Edition (International Version),
OUP, 2014
Chapter- 9: Baye & Prince: Managerial Economics and
Business Strategy, 8e, McGraw Hill, 2014
Chapter-13: Hirschey Mark: Managerial Economics, 12
e, India Edition, CENGAGE Learning, 2013
Chapter-10: Salvator D; Rastogi: Managerial
Analysis of the Markets Economics: Principles and Worldwide Applications, Various strategies
close to the real world 8th Edition, Adapted Version, Oxford, 2016 and adopted by few firms
18
market (Oligopoly Chapter-9: Keat Paul G, Philip Y Young, Sreejata while producing the
Market),Part-2 Banerjee: Managerial Economics: Economic Tools for similar products
Today’s Decision Makers, 6th edition, Pearson
Publisher, 2011
Chapter 11: Dominick Salvatore, Principles of
Microeconomics, 5th Edition (International Version),
OUP, 2014
Review of Pricing Various types of pricing
19 Techniques in various Text book, various chapters mentioned above mechanism in different
markets market structure
What is competition?
Issues of Competition in
20 As above What are the anti-
various markets
competitive practices?

Managerial Economics 5