Course Plan
East Delta University
Program: MBA, Spring 2025
Course Title: Economic Analysis for Managers
Course Code: MBA 679.2
Total Credits: 03
Instructor: Dr. M.A. Hossain, PhD and Postdoctoral (Queensland), MA (Western Illinois), Professor, Department of
Economics, University of Chittagong. Ph: 01718 111 797, Email: hossain@[Link].
Class Hours: 6:30 – 9:30PM SUNDAYS
Consultation Hours: 5:30 – 6:30PM SUNDAYS/MONDAYS
Course Objective
This course emphasizes on the applications of microeconomic tools, and selected topics from macroeconomics that
enable the business leaders to take informed decisions. Microeconomics primarily deals with allocation of scarce
resources to competing uses on the part of individual persons or individual economic units (call them economic agents).
Economic agents pursue certain objectives such as the maximization of utility (by a consumer) and minimization of cost
(by a firm). Microeconomic tools help understand how economic agents achieve optimum outcomes with the resources as
their disposal. Individual decisions are affected by the actions of other individuals as well as the regulations imposed by
the government. A firm understanding of the principles of microeconomics helps one ascertain or predict the
consequences of these actions. On the other hand, macroeconomics concerns the overall economic activities taking
place in a country. The trends in or the fluctuations of the macro-variables have important implications for business
decisions. The macroeconomic outcomes are greatly affected by the government policy changes as well as the
performance of the global economy. Time permitting; the course will focus on the international linkages of an economy.
The lectures will be based on descriptions and graphical illustrations of the issues, and as and when necessary, some
algebraic exercises.
Textbooks
1. W.F. Samuelson and S.G. Marks – Managerial Economics (7th ed.)
2. C.H. Petersen, W.C. Lewis and S.K. Jain – Managerial Economics (4th ed.).
3. E.K. Browning and M.A. Zupan – Microeconomics: Theory and Applications (7th ed.).
Evaluation Scheme
Evaluation Type Marks Allocated
Class Tests (30 marks) 15x2=30
Mid-Term Test 20
Assignment(s) 10
Attendance 10
Final Exam. 30
Total 100
Grading System: Standard EDU System as described in the EDU Handbook.
Lecture Scheme
Lecture(s) Topic(s) in Brief
1-2 Basic Concepts: What is economics, Ten principles of economics, Economic resource,
economic activity and factors of production, Opportunity costs and production possibility
1
frontier (PPF), Fundamental problems of an economic society, Microeconomics vs.
macroeconomics, Why does a manager need to study economics - the Principal-Agent
problem, Models in economics, Positive vs. normative economics
3 Introduction to Economic Decision Making: Examples of managerial decisions, Steps in
managerial decisions
4 Optimal Decisions Using Marginal Analysis: A simple model of the firm, Marginal Class Test 1
Analysis, Marginal revenue and marginal cost, Sensitivity analysis
5-6 Demand Analysis and Optimal Pricing: Determinants of demand – demand function,
demand curve, shift in demand, Elasticity of demand – price elasticity, cross elasticity and
income elasticity, Optimal pricing – price elasticity, revenue and marginal revenue, mark-up
pricing, price discrimination
7-8 The Theory of the Firm: Short- and long-run production functions, The law of diminishing Mid-Term (7th
marginal returns, Short- and long-run cost functions, Profit maximization, Isoquants and class)
isocost curve, Output maximization, Cost minimization, Returns to scale, Economies of
scale and economies of scope.
9 - 10 Market Structure – Perfect Competition: Characteristics, Output decision; Monopoly: 2nd Class Test
Price and output decisions, Monopoly power, Sources of monopoly power, Price (10th Class)
discrimination, Bilateral monopoly, Natural monopoly; Perfect competition vs. monopoly
11 Market Structure – Oligopoly and Monopolistic Competition: An overview of the Assignment
oligopoly models, the meaning of cartels; Characteristics of monopolistic competitions; the due
role of advertising
12 Pricing Decisions: Pricing of goods and services – Pricing of multiple products, Product
bundling, Peak-load pricing, Cost-plus or mark-up pricing, Cyclical pricing, Pricing of inputs
Wish you the best of success in this course and the rest of your semester courses.
