8/6/2019 Detailed Course Curriculum PGDM ME 2010

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Institute of Management Technology, Ghaziabad

Managerial Economics

Objective of the Course: The main objective is to developdecision making capacity in students. Managerial Economics can beviewed as an application of that part of micro economics thatfocuses on topics like demand, production, cost, pricing and marketstructure. Understanding these principle will help to develop arational decision making. Managerial Economics sharpens theanalytical framework that the executive must bring to bear onmanagerial decisions. In general Managerial Economics will helpmanagers to ensure that resources are allocated efficiently withinthe firm and that the firm responds appropriately to changes in theEconomic Environment.

LECTURE PLANModule Topics Readings Sessions

I.Introduction 1. Introduction to economics, nature andscope of Managerial Economics,

Economics and other disciplines.

2. Tools and techniques of decision

making.

Ch.1 text book &

hand outs

Ch.2 text book

1-2

II. Demand

Theory

1. Demand for a commodity, Price

Elasticity of demand, Income

elasticity, Cross elasticity, uses of

different concepts elasticity in business

decisions.

Ch.3 text book 3-5

III. Demand

Estimation

&

Forecasting

1. Demand Estimation: Approaches to

demand estimation, Introduction to

Regression analysis, Simple

Regression and Multiple Regression,

problems in Regression Analysis,

Demand Estimation by Regression

Analysis.

2. Demand Forecasting

Ch.4, text book

Ch.5, text book

6-8

9-10

IV. Production

Theory andEstimation

1. Production function, Production

function with one variable input,Production function with two variable

inputs, optimal combination of inputs,

Returns to scale, Empirical

production functions

Ch.6, text book 11-13

V.Cost Theory

and Estimation

1. Nature of costs, short-run cost

functions, long-run cost functions,

economies of scale, Learning curve,

Cost-Volume-profit Analysis,

Empirical cost functions

Ch.7, text book 14-15

VI. Market

Structure

1. Perfect Competition

2. Monopoly3. Monopolistic Competition

4. Oligopoly and Game Theory

Ch. 8-10, text book 16-18

VII. Pricing 1. Pricing of multiple products, Price Ch.11, text book 19-20

8/6/2019 Detailed Course Curriculum PGDM ME 2010

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