Microeconomics .pdf

IIM Bodh Gaya

PGP Course Outline

Year

2018-19

Functional Areas

Economics and Business Environment

Title

Microeconomics

Course Coordinator

Prof. Pradyumna Dash

T1✓ T2☐ T3☐ T4☐ T5☐T6☐

Academic Term

Page

1

Core ✓ Elective ☐ Abbreviation

ME

Teaching Members

Prof. Pradyumna Dash

Course Revision Record Version

Credits

3

Contact Details Course eMail

Version Date

Contact Hours

30

Learning Hours

Recommendation

60-70

Office Hours

9:30 a.m to 6:00 pm

[email protected] Course Description

Course Overview (200 words)

Economics is the study of how people make choices/decisions in the presence of scarce resources. Every decision involves a trade-off because by making one choice, another choice is given up due to scarcity of resources. In a firm, a manager's task is to allocate scarce resources to achieve a goal. A good understanding of microeconomics is vital for managerial decision making and for understanding how a modern economy functions.

Course must be aligned with a strategic objective of the program Prerequisites/ Co-requisites

None

Learning Objectives

The goal of this course is to understand how microeconomics can be used as a practical tool in managerial decision-making process. This equip participants with intermediate level economic concepts and tools of analysis to develop critical thinking and analytical skills to apply under different business situations. Concepts of this course can further be applied in Industrial Regulation, Strategic Competition, International Business, Marketing, Managerial Accounting, Public Policy, etc.

Learning objectives must be aligned with learning outcomes of the course Teaching Methods

It is basically a theoretical course. All sessions are lecture based. Applications and cases studies are discussed to reinforce the theoretical understanding of concepts.

Refer academic policies and procedures handbook

IIM Bodh Gaya

PGP Course Outline For Internal Use Only

Attached separately

Page

2

Session Plan*

Refer academic policies and procedures handbook *Use separate session plan template if necessary Text Books

Pindyck, Robert S. and Rubinfeld, Daniel L. (2017) Microeconomics, 8th Edition, Pearson Education, Inc

Refer Institutional policies to procure materials Notes & Readings

See the detailed session plan

Refer Institutional policies to procure materials Cases

See the detailed session plan

Refer Institutional policies to procure materials Simulations

NA

Refer Institutional policies to procure materials Other Reference Books and Materials

One of the Best Introductions to the Principles of Economics: Paul A. Samuelson (the original 1948 edition), Economics. One of the Good Introductory Texts for Students and Generalists: N. Gregory Mankiw, 6th Edition, Principles of Economics.

Refer Institutional policies to procure materials Evaluation components

Component Mid-Term Exam: End-Term Exam: Quizzes: Class Participation: Total:

Weightage(%) 35 35 20 10 100

Refer academic policies and procedures handbook

IIM Bodh Gaya Assessment Pattern

PGP Course Outline

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Page

Course Expectation from the students

3

Refer academic policies and procedures handbook

Refer academic policies and procedures handbook Academic Standard and Honesty

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Refer Program Specific manuals Other Relevant Information

Class participation will be evaluated based on three parameters: class attendance, preparedness for the classes, and actual class participation ………………………………………………………………………………………………. Make-up Exam policy: No make-up will be given for missed quizzes. Make up for Mid-term and End-term exams will be given only if the participant was on leave with approval from the PGP Chair. The nature of such make up exam will be decided by the instructor

Refer Program Specific manuals

IIM Bodh Gaya

PGP Course Outline For Internal Use Only Details Session Plan Readings PR, Chapter 1, pp.27-42

4, 5

Consumer Behaviour

PR, Chap-3, pp. 91-116

6

Individual and PR, Chap-4, pp. 135-148. Market Demand

7

Elasticity of Demand and Supply

8-9

The Impact of PR, Chap-9, pp.325-347; pp.353Price Ceilings 359 and Price Floors

10

Theory of Production Theory of Cost

PR. Chap-6, pp.215-229

Profit Maximisation and Perfect Competition Market Power: Monopoly

PR, Chap-8, pp.287-314

15

Pricing with Market Power

PR, Chap 11, pp. 407-418

Airlines Fares PR, Chap 11, pp. 417-418

16, 17

Monopolistic Competition and Oligopoly

PR, Chap-12, pp. 447-459, pp.468478

1. Monopolistic Competition in the Markets for Colas and Coffees

2, 3

11, 12

13

14

4

Topics Basic Economic Concepts Demand and Supply Analysis

Page

Session 1

PR, Chap-2, pp. 45-56, Chapter 4: Section 4.6, pp.163-167

PR, Chap-2, pp. 57-69; Chap-4, pp 150-155.

PR, Chap-7, pp. 243-272

PR, Chap-10, pp. 365-374, pp.376386

Applications/ Case Studies 1.The market for Sweeteners, PR.p.34 1. The Behaviour of Copper Prices PR, Chap-2, pp. 76 2. The Effects of 9/11 on the supply and Demand for New York City Office Space PR, Chap-2, pp. 55 1. A College Trust Fund PR, Chap-3, pp. 116 2. Cash vs. Voucher at the Factory Canteen

The Media Business, The New York Times, June 13, 1994 The Market for Human Kidneys PR, Chap-9, pp. 333-336

The Short-Run Cost of Aluminium Smelting PR, Chap-7, pp. 254-256 The Short-Run Output Decision of an Aluminium Smelting Plant PR, Chap-8, pp. 298-299 Astra-Merck Prices Prilosec PR, Chap-10, pp. 372

IIM Bodh Gaya

PGP Course Outline PR, Chap-12, pp. 451-452 2. Price Leadership and Price Rigidity in Commercial Banking PR, Chap-12, pp. 471

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20

PR, Chap-13, pp. 483-492

PR, Chap-16, pp.621-622, Chap-18, pp.657-662, pp.686-690.

The Demand for Clean Air PR, Chap-18, pp. 689-690

Markets with Asymmetric Information

PR, Chap-17, pp.627-634, pp.639641

Reducing Moral Hazard: Warranties of Animal Health PR, Chap-17, pp. 641

5

Game Theory and Competitive Strategy Market Failures

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