Managerial Economics
Faculty Offering
Kingshuk Sarkar
Associate Professor, General Management & Public Policy
- kingshuk@gim.ac.in
- + 91 9007704524
Swarna Parameswaran
Assistant Professor, General Management & Public Policy
- swarna@gim.ac.in
- + 91 9013368272
Programme / Term
PGDM Hybrid
No. of sessions
24 sessions
Course description
Managerial Economics provides a solid foundation for economic analysis and thinking. Concepts and models of Managerial Economics apply to Finance, Marketing, Operations, Strategy, Human Resource Management, politics, history, and many other fields. They also form the basis for managerial decision-making.
Programme / Term
- Graduating students will be able to use an integrative approach to analyze business situations.
- Graduating students use a data-driven approach to present a solution to a management problem.
- Graduating students will be able to identify the issues of sustainability in business decision contexts.
- Graduating students will be able to formulate business strategies.
1. Core Courses
a. Synchronous (topics and sub-topics to be covered in class) –
- The basics of supply and demand
- Demand function, law of demand, Giffen and inferior good, price elasticity, cross-price elasticity, income elasticity, and the relationship between price elasticity and marginal revenue, diminishing marginal utility, supply function, law of supply
- Demand and supply, market forces, market equilibrium, the general law of demand and supply, shifts in demand and supply, the impact of the shift in the demand and supply on the equilibrium, Market failure – price ceiling and floor price, externalities, public goods
- Production
- Production function, average and marginal product, production equilibrium
- Different concepts of cost, short run and long run, U-shaped average cost curve Market
- Market
- Different forms of market, perfect competition, monopoly, monopolistic competition, oligopoly, market equilibrium, game theory
- National Income
- Definition, measures, limitation
- Money and Banking
- Money Demand and Money Supply, Money Market Equilibrium, Money Multiplier, Banking Structure
- Inflation and Employment
Methodology
Lecture delivery, Storytelling, Classroom Discussion
Group Projects and Journal
Group projects are an integral part of learning. Students are expected to form into groups of 4/5 to work on their projects. The projects would be due a week from the close of the term. Proposals are due by the 6th class. Students are expected to take a project in consultation with the instructor. The proposals must include a statement of the problem they seek to address, breaking down the same in to questions and an indication of how they would address the same. They should pose the questions sharply, and if the working involves data they must indicate the data sources as well.
Students would maintain a journal in which they would record questions that they raised and the learnings, on a session by session basis. The same would be submitted for evaluation.
For whom
- Students seeking a deep understanding of the new opportunities in PPPs and private capital in infrastructure, and willing to work hard would find the course engaging and useful.
- Consultants in government and infrastructure verticals, developers, regulators, and senior (credit) staff of BSFIs seeking to finance infrastructure projects, would find the course very useful saving them many years of learning on the job. Prerequisites for the course would be basics of microeconomics, capital finance, and financial markets.
- Students should have a sound knowledge of basic concepts in financing, microeconomics, and organizational management. This course would not suit the causal attendee.
Evaluation
Title
Percentage
Class Participation
10%
Group Assignment
20%
Mid Term Examination
30%
End-term examination
40%
TOTAL
100%
Section wise outline
Session Seq /Date & Time
Topic
Cases/Readings
1
Introduction
PR
2-4
The basics of supply and demand- Law of demand, demand function, Giffen good, Movement along the demand curve and shift of the demand curve
PR
5
The supply schedule, the law of supply, supply function, supply curve, the shift of the supply curve
PR
6
Market Equilibrium, General Law of demand and supply
PR
7
Elasticity- Price elasticity, Income elasticity, advertisement elasticity, cross-price elasticity
PR
8
Basics of Production
PR
9-10
Theory of cost
PR
11
Externalities and Public Goods-Externalities, ways of correcting market failure Effects of Government intervention – Price control, taxation
PR
12-16
Different forms of market, Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly, Game Theory
PR
17-18
National Income
GM
19-20
Simple Keynesian Model
GM
21-22
Money & Banking
GM
23-24
Inflation & Unemployment
GM
23 and 24
Non-linear regression models & Qualitative response regression models
Reference Books
Pindyck, R., & Rubinfeld, D. (2018). Microeconomics (8th Edition). New York, NY: Pearson. (Hereafter mentioned as “PR”)
N.Gregory Mankiw (2009) Macroeconomics 7th Edition, New York: Worth Publishers.
Institutions where the course is offered
GIM