Managerial Economics - MB25C03

 

MB25C03:

Managérial Economics

 

Course Objectives:

The course is designed to provide a strong foundation in economic principles and tools applicable to managerial decision-making. It introduces the concepts of scarcity, efficiency, and market mechanisms in both micro and macroeconomic settings.

 

Introduction to Managerial Economics and Fundamental Concepts: The themes of economics, scarcity and efficiency, three fundamental economic problems, CREDITS : 3 8 society’s capability, Production possibility frontiers (PPF), Productive efficiency Vs economic efficiency, economic growth & stability, Micro economics and Macro economics, the role of markets and government, Positive Vs negative externalities.

 

Demand, Supply and Consumer Behavior: Market, Demand and Supply, Determinants, Market equilibrium, elasticity of demand and supply, consumer behavior, consumer equilibrium, Approaches to consumer behavior

 

Production, Costs and Firm-Level Analysis: Production, Short-run and long-run Production Function, Returns to scale, economics Vs dis-economics of scale, Analysis of cost, Short-run and long-run cost function, Relation between Production and cost function - Production Pricing Model -Types of Pricing Model

Market Structures and Factor Pricing: Product market–perfect and imperfect market–different market structures–Firm’s equilibrium and supply, Market efficiency, Economic costs of imperfect competition, factor market–Land, Labour and capital–Demand and supply–determination of factor price–Interaction of product and factor market–General equilibrium and efficiency of competitive markets.

 

Macroeconomic Performance Indicators: Macro-economic aggregates, circular flow of macroeconomic activity, National income determination, Aggregate demand and supply, Macroeconomic equilibrium, Components of aggregate demand and national income, multiplier effect, Demand side management, Fiscal policy in theory.

 

Monetary Economics and Supply-Side Perspectives: Short-run and Long-run supply curve–Unemployment and its impact–Okun’s law, Inflation and the impact–reasons for inflation–Demand Vs Supply factors–Inflation Vs unemployment trade off, Phillips curve –short- run and long-run – Supply side Policy and management- Money market- Demand and supply of money, money-market equilibrium and national income, the role of monetary policy.

 

Weightage: Continuous Assessment: 40%, End Semester Examinations: 60%.

Assessment Methodology: Written Test I & II (60%) Assignment, Presentation, Case Study, Quiz, Simulation, Online Certification, Seminar, Mini project (40%)

 

References:

1. Samuelson, P. A., Nordhaus, W. D., Chaudhuri, S., & Sen, A. (2019). Economics (20th ed.). Tata McGraw Hill.

2. Boyes, W., & Melvin, M. Text book of economics. Biztantra. (Note: No year provided—if you can share that, I can add it.)

3. Mankiw, N. G. (2022). Principles of economics (8th ed., India release). Thomson Learning/Cengage India.

4. Lipsey, R., & Chrystal, A. (2015). Economics (13th ed.). Oxford University Press.

5. Case, K. E., & Fair, R. C. (2019). Principles of economics (13th global ed.). Pearson Education Asia.

6. Panneerselvam, R. (2013). Engineering economics (2nd ed.). PHI Learning.