1. This document outlines the details of the Managerial Economics course including the instructor information, evaluation criteria, assignments, presentations, activities, and lecture topics. 2. The course aims to help students understand economics in their personal and professional lives to become better decision makers. 3. Students will be evaluated based on tests, assignments, case studies, and presentations covering microeconomics, macroeconomics, demand analysis, forecasting techniques, utility analysis, and production functions.

1. Course: Managerial Economics(MB105)
Course Instructor: Shweta Miglani
E- Mail Id: k_shweta81@yahoo.co.in
Contact No.:`` 9915633055
Tests: 3
Assignments: 4
Case Studies: 4
Total Marks:100
Marks Breakup:
External University Examination: 60
Internal Examinations: 40
Internal Breakup:
Mid Semester Examinations: 15
Ist and IInd Hourlies: 10(5 each)
Presentation 5
Assignments 5
Case study and Class Test 5
Introduction
Economics is a study of mankind in ordinary business of life. The word
Economy comes from Greek word for “ One who manages a household”. At
first, this origin might seem peculiar. But in fact households and Economies
have much in common
Objective
The subject is incorporated in the degree with major objectives as
• To make you understand the world in which you live.
• To make you more active participant in your economy
• To make you a better decision maker in allocation of resources in your different
needs of your life
• Last but not the least to assist you in your business decision making
Keeping all the objectives in mind the course is being designed to give you extensive
knowledge in Business Economics with special reference to MicroEconomics and Macro
economics
A basic Framework called a module is being designed here that will guide and plan your
learning of the course throughout a semester. It will be delivered to you Through
1. Lectures – Module of 45 lectures is being given to you. This contains the content
to be delivered in each lecture. We will try to stick to the schedule but we can
change the schedule as per the grasping and learning power of the students
2. Presentations – In this topic will be given to a group of 4 to 5 students in

2. advance on which they have to present themselves in class. The evaluation of the
same will be done on the spot.
3. Case Discussions – A situation will be given to you on related topics and student
has to recognise a problem and recommend a solution to the same.
4. Assignments – A topic will be given to the students and students have to present
information on the same either in electronic form or in hand written form (will be
specified on the spot). Total of 4 assignment are planned in the course and more
can be included as per the requirement). Assignment has to be submitted within 3
days of given date strictly by 10:00am in campus 1.
5. Tests- Total of 3 tests are being scheduled in the module. Out of which two will
be hourlies(Taken at college level) and one will be taken at class level at the end
of Semester. If need be, other tests can also be organized as per requirements of
the class.
Assignment1
Discuss Demand Forecasting methods with help of practical examples from the industry
Assignment 2
Pick up any Industry or service center and recognize different cost centers. Classify them
under Fixed and variable cost. And find out Break even point for the same.
Assignment3
A small case will be provided related to Global GDP Indicators in which the performance
of various economies on the basis of GDP has been compared. Keeping in mind current
Indian Economy Indicators, judge the position of Indian Economy vis-à-vis other
Emerging Economies
Assignment4
Effect of Monetary policy on Indian Economy
Presentation Topics
1. BRIC- Future Prospects
2. India's Contribution in global Inflation
3. Fuel Price: Will it cross $200 Mark
4. Economic Growth: Costs and benefits
5. Role of Banks in Monetary Policy
6. Indian Economic Indicators
7. Challenges Before Emerging Market Economies
8. India And China- Inclusive Growth
9. Indian Population- An Asset or Liability
10. Has Employment decreased over last 25 years
11. Recession or depression. What’s the difference

3. 12. Cost push inflatiom vs Demand pull inflation
13. Baby boom and future of the economies
14. Third world debt crisis
Activity 1
This is based on Case study 1 only, Products will be allocated in Groups and students has
to develop a case on the assigned products predicting demand for the same in near future.
1. crude Oil
2. Small Cars
3. Airlines
4. Electricity
5. Luxury cars
6. Petrol cars Vs other Fuel Cars
7. Leisure Time activities like Clubs, Gyms
8. Watches
9. Designer Jewellery Vs Customized Jewellery
10. Water
S.NO. Lectures Topics
Introduction (Lecture
1) Introduction to Managerial Economics as a part of MBA
Programme - Its meaning, Utility, what does it includes and
1 how it helps an MBA in his/her life

4. Satisfaction of unlimited wants with limited Resources
Principles of Economics
Micro Economics - Study of one variable at a time
2 Macro Economics- Study of group of Variables
Application Of Micro and Macro In ME - Subject Matter
and contributions of other disciplines like Accounting, HR,
3 Statistics etc in the same, Macro Vs Micro Economics
Introduction to
concept Of Principles Of ME
opportunity Cost Principle- The Cost of Sacrificing next
Economics best Alternative. Ex - How person selects best Job out
(Lecture 2-5) of various alternatives
Marginal and Incremental Principles - How the costs are
being affected by any decision in the business. Ex- college
5 decides to open any new course
national Income- Amt of goods and services produced
within one fiscal year at their market Prices
GDP- Amt of goods and services produced within
domestic boundaries if country by anybody including
6 foreign national
Demand Analysis-
Meaning Of demand- Quantity demanded at any given
time Effective
demand- Desire + Willingness to Buy + ability to buy
Types Of goods- Categorisation on the basis of types of
7 demand
Factors affecting Demand
Price( Price Effect) - Law of Demand ie Inverse relation
8 Demand between price and Demand
Analysis Other Factors affecting Demand - Income, Price of
9 (Lecture 6- 10) Related Goods etc
Elasticity Of Demand- Degree of Responsiveness of
demand due to change in any one factor Factors
affecting Elasticity - Type of Product, Number of
9 Substitutes
Types of elasticity- Price Elasticity, Income, Cross and
Promotional Elasticity of demand,
10 Relationship between Elasticity and total Revenue
11 Case Discussion

5. Demand Forecasting- Ability to predict demand of
various products, Need
of Forecast - How does it affect Costs, Revenues
Production, Types of
12
Forecast - Active Forecasts, Passive Forecasts
Market experiment Method - When actual or sample
product is tried and tested in market 1.
Demand Actual Market, 2.
14
Forecasting Market simulation Method
Techniques Survey of Consumer Intentions-
1. Census Survey, 2.
15 (Lecture 11-13) Sample Survey,
3.Test Marketing
Statistical Method -
1. Regression, 2.
Correlation, 3.Moving
Average, 4. Leading
16 Indicator
Indifference Curve analysis-
Concept of Utility- Want Satisfying Power of Product,
Utility Analysis Indifference Curve - Locus of points showing different
(Lecture 14-15) combinations of two products consumed and yielding same
level of satisfaction
17 Properties of Indifference Curve
Properties of Indifference curve analysis (contd),
Consumer Equilibrium- Best satisfaction level of
18 consumer under Indifference curve analysis
Production Function- Relationship between factors of
production and output Short
Run- When atleast one factor of production is a variable
factor Long Run
Production Function - When all the factors are variable
factors Law of Variable
Production Proportions- Rate of change in output due to change in
proportions of one factor of production, keeping other factor
19
Function constant
(Lecture 16-18)
Long Run Production Function- Application of Law of
returns to scale ie rate of change in output when all the
factors are variable Iso
Quants and Iso Cost Line- locus of combinations of
factors of production yielding same level of output and
20 same level of cost respectively

6. Introduction to Cost Function- Relationship between
production and cost function i.e level of output will decide
21 cost
Theory of Costs
Concept of Cost- Payment made to all the factors of
production
Types of Costs-
1. Fixed Cost
2. Variable Cost
3. Short Run Cost
22 4. Long Run Cost
Cost Function Types of Costs-(Contd.)
(Lecture 19-23) 5.Average Cost,
6. Marginal Cost,
7. Incremental Cost,
8. Private Cost, 9.
Sunk Cost,
23 10.Externalities
Short Run Cost Function- Explanation of different cost
24 Curves under Short Run Function
Long Run Cost Function- Behaviour of cost when all the
factors are variable Short
Run Vs Log run- Which Function to adopt at what level of
25 output
Price Function- Function decided by demand and supply
forces
Moventment of Price- Case where Demand and supply
Price moving in same direction
Case Where demand and supply move in opposit Direction
26
Function(Lecture Factors affecting Price of Product,
24)
Types of Pricing Techniques- Cost based Pricing,
Marginal Pricing, Penetration Pricing, Price Skimming
Strategy Breakeven
27 analysis - Point of No Profit No Loss

7. Market Structure
Concept of Market - Place where buyers and sellers
come together to sell a product,
Classification of market on the basis of degree of
competition Perfect
Competition- characterized by Large number of players
selling alike Product
Monopolistic Competition- characterized by large
number of buyers and sellers selling hetrogenous products
eg daily use Products like Toothpaste
Oligopoly - Characterized by few big players selling
Hetrogenous or homogenous Products eg Automobile
Market Monopoly -
28 characterized by one Player selling unique Product
Perfect Competition- Price and output determination
under perfect competition giving rise to Supernormal
29 Profits, Normal Profits, Losses
Market Structure Monopoly - Features,
Price Discrimination Charging different set of prices for
(Lecture 25-30) same Product,
Degrees - Ist Degree, IInd Degree, IIIrd Degree output
30 Price and output determination under Pure monopoly
Price and output determination under discriminating
monopoly - In two different markets, where in one is
perfect competition and other has monopoly
31 Myths under Monopoly markets
32 Monopolistic competition- Price and output determination
Oligopoly
Cournot model Price and output is determined under zero
Cost Structure Ex Mineral Water, Perfect
Collusion model- when cartel is being formed by all
players on mutual understanding and agrees to share
33 profits equally
Kinked Demand Model- when upper part of demand curve
is highly elastic and lower portion is highly inelastic give
rise to kink in demand curve at its centre and making a
34 price of product a rigid price
35 Test 2
Introduction to Macro
Economics (Lecture Macro Economics - Study of group of variables, Macro
36 31) economic Policies
37 Discussion of Case study 3

8. National Income- Amt of goods and services produced
within one fiscal year at their market Prices GDP-
Amt of goods and services produced within domestic
National Income boundaries if country by anybody including foreign national
GNP- Amt of goods and services produced by indian
38
(Lecture 32-33) National residing in any part of world.
Methods of Measuring National Income- Income
39 Method, expenditure Method, Value added Method
40 Social Accounting- Meaning, Method
Consumtion Function- Relationship between
Consumption and income of an individual,
Consumption Attributes- Marginal propensity to consume and Average
41 Function (Lecture Propensity to consume,
34-35) Keynes Psychological Law of Consumption
Dussenbery and fried Man Hypothesis- Shows the
42 movement of APC and MPC over a long period of time
Claasical Theory of Income, output and Employment
43 Assumes Levelof Full employment is a normal situation
Theories of Principle of effective Demand point where aggregate
Income, output and demand price is equal to Aggregate ssupply Price,
Investment Keynes theory of Income, Output and employment-
(Lecture 36-38) Proves level of Full employment is abnormal situation and
level of under employment a normal situation for any
44 economy
Theory of Multiplier- Relationship between investment
and income generation
Static Multiplier- That does not take into consideration
Multiplier Function any time lag between income and consumption
(Lecture 39-40) Dynamic Multiplier- that takes into consideration time lag
between income and consumption,
45 Leakages of Multiplier
Government Multiplier, Tax Multiplier, Balanced Budget
46 Multiplier
Inflation- When too much money is chasing too few a
Inflation (Lecture goods Types of
41-43) Inflation causes of
47 Inflation- Supply or Demand
48 Discussion of Case study 4
Stabilisation
Policies (lLecture
49 44-45) Monetary Policy&Fiscal Policy
50