microeconomics for managers - 2013.pdf

7/27/2019 Microeconomics for Managers - 2013.pdf

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Post Graduate Programme in Management

2013-14 TERM: I

TITLE OF THE COURSE: MICROECONOMICS FOR MANAGERSCREDITS: 4

Name of the Faculty memberSiddhartha K. Rastogi; Subhasankar Chattopadhyay; Debdatta Pal

Faculty Block -B Room No. 1

Email: [email protected]; [email protected]; [email protected]

Telephone Number +91 731 2439 534; +91 731 2439 549; +91 731 2439 530

COURSE DESCRIPTION

This course serves as the first course in Microeconomics. The focus of the course is onunderstanding of economic concepts and tools to facilitate decision-making in businessmanagement as well as public policy contexts.

COURSE OBJECTIVES

The course aims to equip participants with intermediate level economic concepts and tools ofanalysis to develop critical thinking and analytical skills to apply under different businesssituations. Concepts of this course can further be applied in Industrial Regulation, StrategicCompetition, International Business, Marketing, Managerial Accounting, Public Policy, etc.

PEDAGOGY/TEACHING METHOD:All sessions are lecture based. Applications and case studies are used for illustrative purposes toreinforce the understanding of concepts and tools.The basic reference book used is: Pindyck, R.S., Rubinfeld, D.L. and Mehta, P.L. (2009)Microeconomics, 7th Edition, Prentice Hall of India Pvt. Ltd., New Delhi; hereafter P-R.

Make-up Exam policyThere is no makeup provision for the quizzes; whereas makeup for mid-term and end-term examswill be given only if the participant was on medical leave with approval from PGP Chair. The natureof such make up will be on the discretion of the instructors.


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EVALUATION WeightageClass Participation 10Surprise Quizzes 20Mid-Term Exam 35End-Term Exam 35

Total 100%

SCHEDULE OF SESSIONSModule I Basic Economic Concepts

Module ObjectiveTo introduce the participants to the economic way of thinking

Sessions and Objective

1. Basic Economic Concepts: How economists think to make sense of the world.P-R, Chap-1

Module II Consumer Behavior

Module ObjectiveTo understand the behavior patterns of consumers under different conditions

Sessions and Objective

2. Consumer Behaviour: How consumers employ scarce resources to fulfill unlimitedwants.P-R, Chap-3, pp 61-84Case: Designing New Automobiles (I) and (II), pp 71 and 83

3 - 4 - 5 Demand and Supply Analysis: What and how affects demand and supply ofvarious classes of goods; how an equilibrium is reached under different conditions.P-R, Chap-2 and Chap 4, pp 117-126Case: Declining Demand and the Behaviour of Copper Prices, pp 46Case: Aggregate Demand for Indian Tea, pp 119

6. The Impact of Taxes and Subsidies: How government's policy decisions enter the mapof consumer behavior and affect the consumption decisions.P-R, Chap-8


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Module III Production Decisions

Module ObjectiveTo understand the pattern of production decisions and product pricing decisions by producersunder different conditions.

Sessions and Objective7. Theory of Production: Basic concepts related to production choicesP-R, Chap-5Case: Returns to Scale in the Carpet Industry, pp 167

8. Theory of Cost: Identifying relevant costs and implicationsP-R, Chap-6, pp 171-184

Case: Short Run Cost of Aluminium Smelting, pp182

9 - 10. Pricing with Market Power: How to price the product when cost is not the only parameter.P-R, Chap 10, pp. 333-354Case: The Economics of Coupons and Rebates, pp 342Case: Airline Fares, pp 344

Module IVMarket Structures

Module ObjectiveTo study the different possible market structures and their implications for economic decision

making.

Sessions and Objective11. Competitive Supply: How do the markets behave under perfectly competitive environment.P-R, Chap 7, pp 221-234

12. Monopoly and Market Power: How do the markets behave when monopoly power exists there.P-R, Chap 9, pp. 293-317


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13 - 14. Competitive Strategy: How market structures make the decision-making a strategic andcompetitive process.P-R, Chap-12, Section 12.1 to 12.3

15 - 16. Monopolistic Competition and Oligopoly: The more prevalent market structures and theprocess of decision-making in such markets.P-R, Chap-11Case: Monopolistic Competition in the Markets for Colas and Coffee, pp 375

Case: A Pricing Problem for Proctor & Gamble, pp 388

Module VMarket Failures

Module Objective

The neoclassical economics recognizes that markets can fail under certain situations. This moduleaims to understand such situations, reasons, and remedies.

Sessions and Objective17. Externalities: Situations where markets fail due to externalitiesP-R, Chap 16, pp 529-542 &Case: Emission Trading and Clean air, pp 540

18. Public Goods: The problems in provision of public goodsP-R, Chap 16, pp 557-561

19. Economics of Information

P-R, Chap 17, Section 17.1 to 17.3 and 17.6

20. Course windup and an introduction to Micro-foundations of Macroeconomics

Additional Reading

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microeconomics for managers - 2013.pdf

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