Chandragupta Institute of Management Patna

Microeconomics 1st Term (2012-2014) Course Instructors Dr. Soumyananda Dinda

Introduction:
Microeconomics has emerged as a major subject of learning for policy/decision makers and managers. It deals basically with choice and allocation of resources by individual economic units/entities/agents, such as consumers, resource owners, and producers. It provides analytical tools to explain how individual consumers and producers make their choices and are affected by different price and market situations. It has immediate relevance for managerial decision-making process.

Learning Objective of the Course:

This course is aimed at discussing the role of Economics in managerial decision-making process. Important intermediate level economic tools of analysis are introduced to provide participants with the skills necessary to apply economics in a meaningful way to enhance managerial decision-making. It will help participants develop critical thinking and analytical skills to apply under different business situations. It will facilitate their understanding of other functional areas of management. Concepts of this course can further be applied in the fields, such as Industrial Regulation and Strategic Competition, International Business, Marketing, Managerial Accounting, etc. No prior knowledge of economics is required to understand the concepts of this course.

Pedagogy:
It is basically a theoretical course. Almost all the sessions will be based on lectures only. In few selected portions, participants might be asked to make some presentations.

Evaluation Pattern:
Mid-Term Exam: End-Term Exam: Case Study: Assignment: Surprise Quizzes: CP: 20% 20% 15% 15% 15% 15% [Cl att 5%+prep for cl 5%+cl part 5%]

CP will be evaluated based on three parameters: Class attendance, Preparedness for the classes, actual class participation. 100% attendance with insignificant performance on the other two parameters would fetch grade C. Session Details: Session # 1 2&3 4, 5, & 6 7, 8, & 9 10 11 & 12 13 & 14 15 16 17 18 19 20 21 22 Topic Reading Basic Economic Concepts P-R, Chap-1 Demand and Supply Analysis P-R, Chap-2, pp 19-32, Chapter 4: Section 4.6 Consumer Behaviour and Demand Determination P-R, Chap-3, pp 63-89; P-R, Chap-4, pp 107-121 Elasticity of Demand and Supply P-R, Chap-2, pp 32-46; pp 123-127,Chapter 4:Section 4.6 The Impact of Taxes and Subsidies P-R, Chap-9, 9.1 to 9.4; Section 9.6 Theory of Production P-R, Chap-6 Mid-Term Examination Theory of Cost P-R, Chap-7, pp 213-247 Profit Maximisation & Competitive Supply P-R, Chap 8 Monopoly and Market Power P-R, Chap 10, pp. 339-359 Pricing with Market Power P-R, Chap 11, pp. 381-393 Monopolistic Competition and Oligopoly P-R, Chap-12, Section 12.1 Oligopoly (Contd) P-R, Chap-12, pp. 441-447 & 457-462 Game Theory and Competitive Strategy P-R, Chap-13, Section 13.1 to 13.3 Markets for Factor Inputs P-R, Chap-14, Section 14.1 Market Failures P-R, Chap 16, Section 16.7; Chap 18, pp. 641-645;Section 18.5, pp. 665-669 End-Term Examination

Recommended Text:

Pindyck, Robert S. and Rubinfeld, Daniel L. (2005) Microeconomics, 6th Edition, Prentice Hall of India Private Limited, New Delhi. One of the Best Introductions to the Principles of Economics:
Note: I) In the table, P-R refers to Pindyck and Rubinfeld. II) Supplementary readings, in addition to the above-suggested texts will be distributed later.