Course Code: 19MBA503A

Course Title: Managerial Economics

Course Leader: Prof. Arup Bhattacharya

director.tll@msruas.ac.in

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 Module Details

• Course Tile: Managerial Economics

• Course Code: 19MBA503A
• Department: Management Studies
• Course Leader: Prof. Arup Bhattacharya (
director.tll@msruas.ac.in)
• Faculty: Management and Commerce
• Dean: Dr. H. S. Srivatsa(dean.mc@msruas.ac.in)

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 Course Aim and Summary

This course deals with economics for managerial decision making.

Students will be introduced to concepts such as scarcity and efficiency,
problems of economic society, demand analysis, elasticity, consumer
behavior, producer behavior, and cost analysis as well inclusion of
advanced topics in economic analysis, with a focus on strategic
behavior of different kinds of market structures and pricing. Students
will also be familiarized with e Gross Domestic Product (GDP) and
national income and analyze the implications of changes in fiscal and
monetary policies

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 Intended Learning Outcomes

After undergoing this course, students will be able to:

1.Discuss the concepts of micro and macro economics

2.Explicate the concepts of consumer behavior

3.Apply forecasting techniques for managerial decision making

4.Examine economic logic to managerial decision making

5.Analyze implications of changes in government fiscal and monetary policies

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 Course Content (Indicative)
• Introduction to Managerial Economics - Economic Systems, Principles of
managerial economics, Integration with other managerial decision making
process, Tools and analysis of optimization, Role of Government, private,
Competition Vs Cooperation.
• Demand and Supply Analysis - Determinants of Demand and Law of Demand,
Demand forecasting, Qualitative and Quantitative interpretation of demand, Law
of Diminishing Marginal Utility, Consumer Surplus, Supply Definition,
Determinants and Law of Supply, Supply Curve, Producers surplus.
• Consumer Behavior - Analysis of consumer behavior, decisions that individuals
make, what and how much to consume, analysis of decisions in terms of their
underlying preferences, consumer preferences in a utility function, use of
utility function to make predictions about consumer preferences
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 • Analysis of Production, Costs and Revenues - Cost of factors involved in
production, Variable and Fixed Cost, Average and Marginal cost, real and
Opportunity Cost, Economies of scale, Law of returns: Constant, Decreasing and
Increasing returns.
• Market structures and Decision Making - Market types, Perfect competition,
Price determination and equilibrium, Monopoly - features, equilibrium condition,
Price discrimination. Monopolistic competition- features, Oligopoly - Cartels,
Pricing Strategy, Sustainability business model
• Fiscal and Monetary Policies - Gross domestic product, consumer price index,
Inflation Measurement and Adjustment, standard of living, physical and human
capital, factors affecting productivity, The business cycle, Fiscal policy tools,
automatic stabilizers, contractionary and expansionary gaps, Inflows, Outflows,
and Restrictions Exchange rates, currency appreciation and depreciation, trade
deficits and surpluses 6
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 Course Size and Credits

• Number of Credits: 4

• The Course assessment will have two components:

– Component - 1: 50% weight
Assignment and other Continuous evaluation methods

– Component - 2 : 50% weight

SEE conducted for 100 marks and scaled to 50

• Pass Requirement:
– A minimum of overall 40% marks are required for a pass with compulsory
attendance in SEE

• Attendance Requirement:
– A minimum 80% attendance id mandatory to be eligible for SEE

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 Method of Assessment
• The assessment questions are set to test the learning outcomes. In
each component certain learning outcomes are assessed. The following
table illustrates the focus of learning outcome in each component
assessed:
Intended Learning Outcome 1 2 3 4 5
Component-1     X  X X
Component-2 X X X X X

• Component 1: Assignment/ Case Study discussions/ Surprise Quiz/

Field Work/ Role Play/ Poster Presentation/ Group Discussion/ Video
Demonstration/ Write ups/ Debate/ Team Paper
• Component 2: A three hour duration semester end examination
for a maximum of 100 marks will be conducted and reduced to
50% weight
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 References
• Essential Reading
– Samuelson A. Paul and Nordhaus D. Willium. (2010) Economics, 19th edition, McGraw Hill
– Froyen Richard T (2015) Macroeconomics, Theory and Policies, 8th edition
• Recommended Reading
– Perloff, Jeffrey M (2008) Microeconomics, Theory and Applications, Pearson
– Varshney and Maheshwari. (2014) Managerial Economics, 22nd revised edition, Sultan Chand
Publication, New Delhi
– Paul Justin. (2010) Business Environment, Tata McGraw Hill publication
• Magazines and Journals
– Economic and Political Weekly
– Chartered Secretary
– Chartered Accounts Today
– Industrial Economist
– Indian Journal of Economics
• Websites
– www.wiley.com/college/reid
– www.mhhe.com/stevenson11e
– www.pearsoned.com/permissions
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 Thank you

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