Micro Economics For Managers - Outline

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES NMIMS University, Mumbai

Course outline for Micro Economics for Managers MBA Capital Market 2007-08 Objective The broad objectives of the course are:  To identify the economic forces that affect business organizations  To understand and apply the basic concepts & principles of managerial economics that have implications for the decision making by the managers  To understand elements of competition and its implications Session Plan /Scope Session 1.

Topic Introduction Micro & Macro- Economic Issues; Economic resources & problem of scarcity; Choice problem in economics and optimization

2 & 3.

Consumer Behaviour Indifference Curve analysis; Demand analysis

4.

Demand Forecasting Demand forecasting, techniques, and applications

5.

Production Production functions, factors of production; Average product & marginal product; Law of Diminishing Marginal Product; Production Concept of Isoquant, MRTS, Elasticity of substitution, returns to scale Cost of Production Elementary concepts of various types of costs; concept of long run and short run cost; expansion path Issues in Producer Behaviour Scale & Scope economies, Technological change & its effect, horizontal & Vertical Integration, M&As Interim Presentation Progress in the Report

6. 7& 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

Market Structure Various market structures and their characteristics; Introduction to Perfect competition Market Structure Various issues in Perfect competition Market Structure Monopoly, Market power & elasticity Market Structure Monopolistic competition Market Structure Oligopoly; Introduction to Game Theory and Applications Market Structure & Competition Analysis of market structure, Introduction to Porter’s theory, effect on competition, Measures of concentration Introduction to Pricing Strategies Various methods and tactics, and applications 1

18.

Market Failures Reasons of market failures; private vs. public goods; Theory of public goods; Asymmetry of information – Moral hazard and incomplete information Revision & Recapitulation; Doubt clearing session Presentations

19. 20.

ALL INSTRUCTIONS TO BE STRICTLY FOLLOWED Evaluation Pattern 

Group Project Submission of Brief outline of the project Interim presentation Report Submission & presentation

30% (End of session 5) (End of session 11) (End of session 19)

Assignments Short Quiz Up to session 13

10% 10% (End of session 14)

 

End-term Exam Entire syllabus

50%



PROJECT 

Prepare Industry Report applying the concepts & tools of microeconomics. Your report should broadly cover the following points: o o o o



Choose a firm in operation in the Industry (given to you) Describe the market structure of the firm Analyze competitive position, its strategies and challenges facing the firm Apply various forecasting techniques to forecast demand for your industry and the firm

Report should be strictly less than 2500 words. Use 1.5 line-spacing with font size11.

References:

• • • • • •

Micro Economics, Pindyck & Rubinfeld Managerial Economics, Damodaran S Managerial Economics, Salvatore Paul Samuelson & Nordhaus: Economics Baumol, W J & Blinder, A: Economics: Principles & Policy Henderson & Quandt

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