Introductory Lecture

COURSE CODE: ECO 515

COURSE NAME: MANAGERIAL ECONOMICS

1. Lecture (L)= 2 per week

2. Tutorial (T)= 1per week

3. Practical (P)= Nil

4. Credits (Cr.)= 3 per week

L/T/P= 2/1/0
 Course Objectives
• To apply economic principles to
management decisions.
• Evaluating the managerial decisions making
around the theory of the firm with application
in a globalized economy
• Analysing the implications of various
elasticity's of consumer demand for pricing
and location decisions
• To evaluate possible strategies in the event
a firm is one of just a few companies in a
market
 Text Books:
1. MANAGERIAL ECONOMICS: ECONOMIC TOOLS
FOR TODAY’S DECISION MAKERS BY PAUL KEAT,
PHILIP YOUNG, STEPHEN ERFLE AND SREEJATA
BANERJEE, Pearson Education India

References:
1. MANAGERIAL ECONOMICS PRINCIPLES AND
WORLDWIDE APPLICATIONS by SALVATORE,
DOMINICK AND RASTOGI, SIDDHARTHA K, Oxford
University Press
2. MANAGERIAL ECONOMICS by SUMA
DAMODARAN, Oxford University Press
 EVALUATION PARAMETERS
1.Continuous Assessment (CA):
a. Total Number of Assignments = 3
b. All assignments are compulsory.
c. Every CA will be of 30 marks but presentation will be
of 15 marks.
d. Attendance carries 5 marks
 Details of Weightage

CA Details Weightage

Assignment- case based 43.75

Assignment 43.75

Presentation 12.5
2. Mid-Term Exams (MTE):
• No

3. End Term Exams (ETE):

• ETE consists of 70 marks and are converted into 50
marks
 Marks break up
• CA (All three) 45
• Attendance 05
• ETE 50
• Total 100
What do you think Managerial
Economics is?
• “The application of economic theory and
methods to business decision-making. ”

• e.g “What strategy should other telecom

subscribers adopt in order to retain its
customers?”

.
According to you, “What kind of
issues are addressed by a
manger?”
1. ‘what to produce’,

2. ‘how to produce’ and

3. ‘for whom to produce’ and what price to

be charged
Do you think there is any
relationship between managerial
economics, economic theory and
the decision sciences?
R’ship among subject areas
Do these brands enjoy the same status?
Importance of in
Managerial Economics

•Why 1. Why we can’t buy

everything that we want?
•What
2. What kinds of goods
•When
should be produced?
•Where
3. When is price
discrimination possible?
4. Where can we sell the
product?
 Managerial Economics will provide
answers to all these and many other
questions
 WHY
So if your “Why” is strong “How”
becomes “Easy”
So ultimately the main issues
are……
Managerial Economics affects your well-
being and society’s
well-being.
 List of Resources

• www.bloomberg.co.uk (Excellent data on current

market, economic, industrial and financial trends
as a valuable sources of reference)
• http://www.econclassroom.com/ ( a valuable
source of video lectures on economics)
• https://www.khanacademy.org/ ( an online
learning website)
• http://www.economicsnetwork.ac.uk/ ( a source of
case studies and teaching techniques)
• http://www.nber.org/ ( a valuable source of
case studies and discussion )
• http://www.tradingeconomics.com/ (a
valuable source of economic indicators)
• Business today ( business magazine)
• http://www.tutor2u.net/economics/presenta
tions/
(Tutor2u online resources - economics)
 Students Role
• Students are advised to use instruction
plan as rudder for their course study.
• They are required to submit their
assignments well on time.
• Students are advised to visit the websites
and other reference made in the
instruction plan.
• They are required to participate on current
news discussion impacting our economy.
 How
The above said topics will be
taught with the help of:
1.Power points,
2.Case studies
3.Current updates from
Newspaper
4.Related websites etc.
5.Discussion
6.Questioning.
Upon successful completion of this course, you will
be able to : (Learning Outcome)
• Discuss key managerial economic
concerns, including demand, supply,
cost and market forces.
• Describe the relationship between Cost
and production
• Compare and contrast the various
types of cost and revenue and their
importance in firm’s decision making.
• Understand the different forms of of
the market
 Next Class:
Introduction to Economics
Meaning, Scope and Importance and
limitations of Managerial Economics