Lovely Professional University,Punjab

Format For Instruction Plan [for Courses with Lectures and Tutorials Course No ECO515 Course Category Cours Title MANAGERIAL ECONOMICS NA Course Planner 13612 :: Chander Shekhar Dogra Lectures Tutorial Practical Credits 4 1 0 5

Text Book:

1 Christopher R Thomas, Sumit Sarkar, S Charles Maurice, Managerial Economics, Ninth Edition, Tata McGraw Hill, New Delhi, 2010

Other Specific Book:

2 Geetika, Ghosh Piyali, Purba Roy Choudhury, Managerial economics, Tata McGraw Hill, New Delhi, 2011 3 Hirshey, Mark, Managerial Economics: An integrative approach, Cengage Learning, 2011 4 H.L. Ahuja, Advanced Economic Theory, 17th Edition, Sultan Chand and Sons, New Delhi, 2011 5 Andrew Abel, Ben Bernanke, Macroeconomics, 4th Edition, Pearson Education,2006 6 Shapiro, Edward, Macro Economics, Galgotia Publications, 2006 7 Truett and Truett, Managerial Economics, Wiley India, New Delhi, 2009

Other Reading Sr No Jouranls atricles as compulsary readings (specific articles, Complete reference) 8 Jain, Monika ," Paradox of Plenty, with Special Reference to Inelastic demand for Apples", May 2011, VOL IX, No. 2, The IUP Journal of Managerial Economics, pp 44-55 9 Rajakumar, J.Dennis, "Size and growth of private corporate Sector in Indian Manufacturing", April 30-May 6, 2011, VOL XLVI, No. 18, Economic and Political Weekly, pp-95-101 10 Wall Street Is No longer Immune by Paul Krugman,New York Times 11 Poverty Alleviation in Rural India-Strategies and Programs-Planning Comission Document 12 Eleventh Five Year Plan, 2007-12 1 Approved for Spring Session 2011-12

13 Strength of preference and cardinal utility by Veronika Kobberling,Economic Theory 27, 375391 (2006),University of Maastricht 14 Updating Managerial Economics by Thoams P. Egan,Business Economics; Jul 1995 15 On Ordianl Utility, Cardinal Utility ad Random Utility by Richard Batley,Theory and Decision (2008) 64:3763 Relevant Websites Sr. No. (Web adress) (only if relevant to the courses) 16 www.economics-ejournal.org 17 http://www.worldbank.org 18 www.berkeleymath.com/BerkeleyJournal.aspx 19 http://mitworld.mit.edu 20 http://www.economywatch.com/indianeconomy/ 21 http://www.egwald.ca/economics/productionfunctions.php 22 http://economics.fundamentalfinance.com/micro_atc_mc.php 23 http://library.thinkquest.org/C004323/low/micro2.html 24 http://www.jaytownley.com/the-bicycle-industry-competition 25 http://www.amosweb.com/cgi-bin/awb_nav.pl? s=wpd&c=dsp&k=short-run+production+analysis Salient Features Excellent policy papers in economics Global rends in current development Excellent papers from Kellogg School of Management Excellent undergraduate courseware from MIT. An insight into current trends in the Indian economy provides detail regarding the use of cob Douglas production function It explains the concepts of cost and cost analysis Excellent explanation of different market forms Excellent case study on perfect competition Information about short run production analysis

Detailed Plan For Lectures

Week Number Lecture Number Lecture Topic Chapters/Sections of Pedagogical tool Textbook/other Demonstration/case reference study/images/anmatio n ctc. planned

Part 1
Week 1 Lecture 1 Introduction to Managerial Economics : Basic Concepts and Techniques Scope of Managerial Economics and role of business in society ->Reference :1,1 ->Reference :2,1 ->Reference :3,1 ->Reference :1,1 ->Reference :2,1 ->Reference :3,1

Lecture 2

Approved for Spring Session 2011-12

Week 1

Lecture 3

Market demand : direct and derived demand, determinants of demand

->Reference :1,2 ->Reference :2,3 ->Reference :3,3

Effects of changes in determinants of demand, Managerial Economics by Thomas and Maurice,9th Edition,p.43 Dabur India Limited: Growing Big and Global, Managerial Economics by Geetika Ghosh,2nd edition,p.64 The Demand for Housing in United States, Microeconomics,7th Edition,Pindyck,Rubinfie ld,Mehta p.121

Lecture 4

Law of demand , shifts in demand curve

->Reference :1,2 ->Reference :2,3 ->Reference :3,3

Week 2

Lecture 5

Law of supply and market equilibrium

->Reference :1,2 ->Reference :2,3 ->Reference :3,3

Lecture 6

Consumer Surplus

->Reference :1,2 ->Reference :2,4 ->Reference :3,3 ->Reference :1,6 ->Reference :2,5 ->Reference :3,4 Price Elasticites of Demand in the Real World, Managerial Economics by Dominick Salvatore, 6th Edition,, p 91

Lecture 7

Price Elasticity; Measurement of point and arc elasticity

Lecture 8

Price Elasticity; Total Outlay method, Degrees of Elasticity Income Elasticity of Demand,Cross Price Elasticity of Demand

->Reference :1,6 ->Reference :2,5 ->Reference :3,4 ->Reference :1,6 ->Reference :2,5 Income Elasticities of Demand in the Real World, Managerial Economics by Dominick Salvatore, 6th Edition,, p 94 Estimation of demand for oranges by market experiment, Managerial Economics by Dominick Salvatore, 6th Edition,, p 128

Week 3

Lecture 9

Lecture 10

Consumer Behavior: Cardinal utility ,Law of diminishing Marginal Utility

->Reference :2,4 ->Reference :3,4

Lecture 11

Consumer Behavior: Cardinal utility ,Law of diminishing Marginal Utility

->Reference :2,4 ->Reference :3,4

Approved for Spring Session 2011-12

Week 3

Lecture 12

Ordinal Utility Analysis: Indifference Curves, Properties and basic concepts

->Reference :1,5 ->Reference :2,4 ->Reference :3,4

To Fly Fast or Far:Tradeoffs in the Market, Managerial Economics by Thomas and Maurice,9th Edition,p.161

Week 4

Lecture 13

Budget line : Concepts, shifts in budget line

->Reference :1,5 ->Reference :2,4 ->Reference :3,4

Part 2
Week 4 Lecture 14 Determination of Consumer Equilibrium ->Reference :1,5 ->Reference :2,4 ->Reference :3,4 ->Reference :1,5 ->Reference :3,4 Employing More and better capital boosts productivity in US petroleum and chemical industries, Managerial Economics by Thomas and Maurice,9th Edition,p.284 Implicit Costs and Household decision making, Managerial Economics by Thomas and Maurice,9th Edition,p.286

Lecture 15 Lecture 16

Income Effect and Substitution Effect

Production and Cost in the short run: Basic concepts ->Reference :1,8 in production function

Week 5

Lecture 17

TP,AP and MP curves, Law of Diminishing Marginal ->Reference :1,8 Product

Lecture 18

Short Run Cost: Fixed and Variable cost

->Reference :1,8 ->Reference :2,8 ->Reference :3,8 ->Reference :1,8 ->Reference :2,8 ->Reference :3,8 ->Reference :1,8 ->Reference :1,9 ->Reference :2,7 ->Reference :3,7

Lecture 19

Average and Marginal Costs, Relationship among cost curves Relationship between AVC, SMC, AP and MP. Production and Cost in the Long Run; Production Isoquants

Lecture 20 Week 6 Lecture 21

Approved for Spring Session 2011-12

Week 6

Lecture 22

Production and Cost in the Long Run; Production Isoquants Isocost curves, shifts in Isocost Curves,Producers equilibrium Expansion Path, Returns to scale

->Reference :1,9 ->Reference :2,7

Downsizing or Dumbsizing, Managerial Economics by Thomas and Maurice,9th Edition,p.317

Lecture 23

->Reference :1,9 ->Reference :2,8 ->Reference :3,8 Managing Economies and Diseconomies of scale, Managerial Economics by Thomas and Maurice,9th Edition,p.327 Economies of scale and scope in banking, Managerial Economics by Thomas and Maurice,9th Edition,p.331

Lecture 24

Long Run Costs;LAC curve and shapes, economies ->Reference :1,9 and diseconomies of scale ->Reference :2,8 ->Reference :3,8

Week 7

Lecture 25

Relationship between SAC and LAC, economies of scope

->Reference :1,9 ->Reference :2,8 ->Reference :3,8

Lecture 26 Lecture 27 Lecture 28

Revenue Curves and their relationships Relationship between MR and Price Elasticity Revision

->Reference :1,6 ->Reference :2,8 ->Reference :1,6 ->Reference :2,8

MID-TERM Part 3
Week 8 Lecture 29 Perfect Competition: characteristics ->Reference :1,11 ->Reference :2,9 ->Reference :3,10 ->Reference :1,11 ->Reference :2,9 ->Reference :3,10 ->Reference :1,11 ->Reference :2,9 ->Reference :1,11 ->Reference :2,9

Lecture 30

Price and output determination in short run: Profit maximization Loss minimization, shut down decision, short run supply curve Long Run Equilibrium

Lecture 31 Lecture 32

Approved for Spring Session 2011-12

Week 9

Lecture 33

Monopoly; market power, determinants for market power

->Reference :1,11 ->Reference :2,10 ->Reference :3,12

Price ceiling-The cases of India post and Indian railways, Managerial Economics by Thomas and Maurice,9th Edition,p.442

Lecture 34

Short run equilibrium; Profit maximization, loss minimization, shut down decision Long Run Equilibrium

->Reference :1,12 ->Reference :2,10 ->Reference :3,12 ->Reference :1,12 ->Reference :2,10 ->Reference :3,12 Is Microsoft a Monopoly? Managerial Economics by Thomas and Maurice,9th Edition,p.428

Lecture 35

Lecture 36

Price Discrimination: Degrees of price discrimination ->Reference :1,14 ->Reference :2,10 ->Reference :4,33 Dumping Monopolistic Competition;Features and short run equilibrium Long run equilibrium ->Reference :4,33 ->Reference :1,12 ->Reference :2,11 ->Reference :3,13 ->Reference :1,12 ->Reference :2,11 ->Reference :3,13

Week 10

Lecture 37 Lecture 38

Lecture 39

Part 4
Week 10 Lecture 40 Oligopoly: Features and prisoner s dilemma (introductory) ->Reference :1,13 ->Reference :2,12 How can game theory be used in business decision making, Managerial Economics by Thomas and Maurice,9th Edition,p.478

Week 11

Lecture 41 Lecture 42 Lecture 43 Lecture 44

Kinked demand curve Collusions and cartel(introductory) National Income;Basic concepts Methods of Measuring National Income; Product method Income Method

->Reference :2,12 ->Reference :4,40 ->Reference :4,40 ->Reference :2,18 ->Reference :5,2 ->Reference :2,18 ->Reference :5,2 ->Reference :2,18 ->Reference :5,2 Approved for Spring Session 2011-12

Week 12 6

Lecture 45

Week 12

Lecture 46 Lecture 47 Lecture 48

Expenditure Method Circular flow of income in two sector economy and three sector economy Four sector model Problems in measurement and uses of national income data Introduction to poverty alleviation and inclusive growth. Introduction to poverty alleviation and inclusive growth. Revision

->Reference :2,18 ->Reference :5,2 ->Reference :2,17 ->Reference :2,17

Week 13

Lecture 49 Lecture 50 Lecture 51

Reference 7 Case study from particular country, Ref 14,15

Lecture 52

Spill Over
Week 14 Lecture 53 Lecture 54 Reaction curves in oligopoly with numerical problems. National Income Accounting ->Reference :1,13 ->Reference :5,2

Details of homework and case studies

Homework No. Objective Topic of the Homework Nature of homework (group/individuals/field work Group Evaluation Mode Allottment / submission Week 10 / 12

Homework 3

Group Presentation

Class will be divided into groups of 4 students each and every group will be given a case study to analyze. Each student is required to submit a separate written report on the case and it should be ensured that there is no copying in the reports. This should be followed by a group presentation.The presentation will be assessed on the clarity and knowledge of the concepts and ability to answer questions during the presentation. Written reports need to be submitted at the time of presentation but PPT should be uploaded on UMS. Students will be required to attempt a test of 45 minutes duration comprising 4 questions. Some of the questions may require diagrams or basic mathematical derivations. Questions will require brief but analytical answers designed to test conceptual understanding and prepare students for the examination.

Written Report-5 marks. Presentation-15 marks

Homework 2

To test conceptual understanding of students on various topics

Individual

4 questions comprising 20 marks.

9/9

Approved for Spring Session 2011-12

Homework 1

To enhance the conceptual understanding of students and enable them to corerlate theoretical concepts with real life issues.

Students will be given 4 questions requiring highly analytical Individual answers.Some answers may require basic primary research and data collection from secondary sources. Questions will be designed to test the students' ability to understand microeconomic concepts and correlate them with real life economic situations.

4 questions comprising 20 marks.

4/6

Scheme for CA:out of 100*

Component Homework Frequency 2 Total :Out Of 3 Each Marks Total Marks 10 10 20 20

* In ENG courses wherever the total exceeds 100, consider x best out of y components of CA, as explained in teacher's guide available on the UMS

Plan for Tutorial: (Please do not use these time slots for syllabus coverage)
Tutorial No. Lecture Topic Type of pedagogical tool(s) planned (case analysis,problem solving test,role play,business game etc)

Tutorial 1 Tutorial 2 Tutorial 3 Tutorial 4 Tutorial 5 Tutorial 6 Tutorial 7

Demand Analysis Elasticity of Demand Indifference Curves Short run Production and short run Cost Long Run Production Long Run Cost Revision

Case analysis Case analysis Case analysis

Case analysis

After Mid-Term
Tutorial 8 Tutorial 9 Perfect Competition Monopoly Case analysis Case analysis

Approved for Spring Session 2011-12

Tutorial 10 Tutorial 11 Tutorial 12 Tutorial 13

Monopolistic Competition Oligopoly National Income Accounting Revision

Case analysis Case analysis Case analysis,Problem solving

Approved for Spring Session 2011-12