MBAE-103: Managerial Economics
The learning units for this course are listed below:
| Unit | Objectives |
| 1 | Scope of Managerial Economics: understand the nature and scope of managerial economics; familiarize yourself with economic terminology; develop some insight into economic issues; acquire some information about economic institutions & understand the concept of trade-offs or policy options facing society today. [Link] |
| 2 | The firm: Stakeholders, Objectives and Decision Issues: understand the rationale for existence of firms; understand the concept of economic profit and accounting profit; appreciate the use of opportunity cost & differentiate between various objectives of the firm. [Link] |
| 3 | Demand Concepts and Analysis: define demand and its determinants; explain the Law of Demand & identify differences between Firm’s Demand Curve and Market Demand Curve. [Link] |
| 4 | Consumer Behaviour: Cardinal Approach: explain the concept of utility; analyse and use cardinal utility approach for measurement of utility; distinguish between cardinal and ordinal utility approaches; and list the assumptions of consumer preferences. [Link] |
| 5 | Indifference Curves Analysis: outline the shortcomings of Marshallian utility analysis of consumer’s demand behaviour; explain the concept of a scale of preferences; enumerate the properties of indifference curves; derive consumer’s demand curve from price consumption curve measure consumer’s surplus with the help of indifference curves; and explain the superiority of otherwise of indifference curves analysis over Marshallian utility analysis. [Link] |
| 6 | Demand Elasticity: understand the concept of elasticity; define various kinds of elasticities; and apply the various measures of elasticity to real world situations. [Link] |
| 7 | The Production Function: define the production; outline the contents of theory of production; explain the law of variable proportions; and explain the law of diminishing marginal returns. [Link] |
| 8 | Market Structures and Barriers to Entry: understand the concept of market structure and the impact it has on the competitive behaviour of the firms; classify different types of market structures; analyse the factors that influence the pricing decisions of a firm; and identify the barriers to entry of firms in the market. [Link] |
| 9 | Pricing under Pure Competition and Pure Monopoly: describe the characteristics of pure/perfect competition and pure monopoly; identify the equilibrium conditions for a firm and the industry in a perfectly competitive situation; examine price-output decisions under pure monopoly; and analyse the relevance of pure/perfect competition and pure monopoly. [Link] |
| 10 | Pricing under Monopolistic and Oligipolistic Competition: describe the concept of the pricing decisions under monopolistic competition in short run as well as long run; explain the concept of product differentiation with special reference to monopolistic competition; differentiate between monopolistic competition and oligopoly; and apply models of oligopoly behaviour to real world situations. [Link] |
| 11 | Classicial and Keynesian Approaches: explain the concepts of aggregate demand and aggregate supply; identify the factors influencing agyegate demand and aggregate supply; explain the Classical approach to determination of equilibrium output and prices; and explain the Keynesian approach to determination of eqdibrium output and prices. [Link] |
| 12 | Business Cycles: explain the concept and features of Business cycle; identify the various phases of Business cycle; distinguish between the monetary and real factors behind business cycle; and distinguish between the leading, lagging and coincident indicators. [Link] |
| 13 | Inflation: Concepts, Types and Measurement: explain the concept of inflation; explain how inflation is measured; disntiguish between various types of price indices to measure inflation; and identify the types of inflation. [Link] |
| 14 | Causes and Effects of Inflation: explain the major causes of inflation; distinguish between demand pull inflation and cost pull inflation; explain the quantity theory of money and structural theory of inflation; and appreciate the effects of inflation on various sections of people. [Link] |