PGDM Semester : I
Course Managerial Economics Course Code GEN 103
Teaching Scheme Evaluation Scheme- Theory (Core)
L T P Total Credits CAS MT ET Total
3 0 0 3 40 60 100
Evaluation Scheme- Practical
NA NA NA
CO Course Outcomes Knowledge
No. Level
1 Grasp fundamental economic principles and distinguish between Remembering
managerial and traditional economics.
2 Apply key concepts like marginalize, opportunity cost, and discounting in Applying
business decisions.
3 Analyze consumer behavior, demand, supply, and market equilibrium using Analyzing
economic models.
4 Evaluate production functions, cost structures, and pricing strategies across Evaluating
various market conditions.
5 Understand national income, inflation, unemployment, and macroeconomic Understanding
policies for effective business management.
6 Develop innovative solutions to business problems by integrating economic Creating
theories and concepts in managerial decision-making.
Course Content:
Unit Description Duration
(Hr)
MODULE I
Introduction to Economics, economic systems
Distinction between Managerial Economics and Traditional Economics
1 Managerial Economics – definition, scope and importance, business decisions 5
and concepts of managerial economics – incremental concept, marginalize,
equi-marginal concept, the time perspective, discounting principle, opportunity
cost principle. The Firm and Its Goals
MODULE II
Introduction to Consumer behavior, Consumer preferences and the Concept of
Utility. Utility- Cardinal approach, Ordinal approach, Consumer ‘s
equilibrium using Indifference curve analysis, Application of Indifference
2 curve analyses., Utility and Demand Analysis – concept and types of utility; 6
Definition of demand, Law of demand and its determinants and exceptions,
movement along the demand curve and shift in demand curve. Definition of
supply, Law of supply, Movement along the supply curve and shift in supply
curve, Factors affecting supply, Market equilibrium. Application of demand
and supply analyses. Concepts of elasticity, degree, determinants & types,
practical implication, Relationship of Revenue and elasticity of demand,
demand forecasting
MODULE III
Production functions, Law of Variable proportions, returns to scale and
3 economies of scale. Costs , Isoquants, Least cost combination types of costs , 6
Short run costs and long run cost, Revenue Analysis –TR, AR and MR, and
break even analysis ; iso-cost lines; Theory of cost, cost concepts and break-
even analysis
MODULE IV
Types of markets, Perfect competition features, Price determination and
4 equilibrium in the short run and the long run, Monopoly - features, equilibrium 6
condition, , duopoly, oligopoly; monopolistic competition, pricing methods
under these competitive environments. Price discrimination
MODULE V
Concept of national product, Variants of national product, Methods for
measuring national income, and problems of measuring, Real vs. nominal price
indices and its applications.
The classical theory of employment, Keynes‘s attack of classical theory and 7
5 the Keynesian theory of employment output and income.
Inflation, Unemployment and Macro Economic Policies .,inflation,
measurement, types, causes effects and measures to control inflation, Philips
curve, unemployment types, monetary policy, objectives, instruments,
functions of money, money supply and its components, money multiplier, high
power money and the Keynes versions demand for money, banks, fiscal policy
its objectives and instruments and budget and its implication.
Total 30
Recommended Books:
Keat Paul G., Young Philip K Y, Banerjee Sreejatha, Managerial Economics - Economic
tools for today’s Decision makers, Pearson education.2013.
Ahuja, H. L. A., Managerial economics: Analysis of managerial decision making. S.
Chand, New Delhi.2000.
Text Books:
Reference Book:
Dwivedi D.N, Managerial Economics, Vikas Publishing House, New Delhi.2012
Campbell R. McConnell, Stanley Brue, Sean Masaki Flynn. Economics (22nd ed.)New Delhi:
McGraw Hill.2022
Mankiw, G. Principles of Economics (8thed.). New Delhi: Cengage Learning. 2021
Paul A. Samuelson, Sudip Chaudhuri, Anindya Sen, William D. Nordhaus, Economics (20thed.).
New Delhi: McGraw Hill.2021
Thomas,C.R & Maurice, C.S. Managerial Economics (12thed.). New Delhi: McGraw Hill.2021
