Introduction to Managerial Economics

By Subhashish Gupta | Indian Institute of Management Bangalore

Learners enrolled: 14294

A successful manager makes good decisions. To make good decisions, you need to understand the market forces that impact your business and personal life. This is true for managers in large multinationals or small businesses, in non-profit organizations or in the government. Individuals and households also make decisions. They decide on what to learn, where to work, how much to save, where to invest, and what goods to buy, among others. Most modern societies depend on markets to organize economic activity: they are market economies. Many decisions you make as individuals or as managers relate to markets. So, it is important for you to know how markets work and how to make good decisions as a manager or as an individual operating in a market environment. This is what this course will teach you.

Most business schools have a course on Managerial Economics as part of the MBA curriculum. Exposure to Economics is essential for all students of management. This course will provide a simple introduction to Managerial Economics and use minimum mathematics.

What you will learn:

• How markets work; supply, demand, and market equilibrium

• Elasticity of supply and demand, taxes, and subsidies

• Production of goods and services, measures of productivity

• Making decisions for hiring and spending on infrastructure

• Opportunity costs, different cost concepts, planning for the future

• Pricing and selling decisions with different types of competitive pressures

• Problems with markets and what we can do about it

Summary

Course Status :	Completed
Course Type :	Core
Language for course content :	English
Duration :	6 weeks
Category :	Management Studies
Credit Points :	2
Level :	Postgraduate
Start Date :	31 Jan 2023
End Date :	30 Apr 2023
Enrollment Ends :	15 Mar 2023
Exam Date :

Page Visits

Course layout

Week 1: How Markets Work?

• What is Economics

• Microeconomics and Macroeconomics

• Why should students of Business learn Microeconomics

• Market Economies

• Production Possibility Frontier

• The Demand Curve

• Factors that Affect Demand

• The Supply Curve

• Factors that affect Supply

Week 2: Demand, Supply and Equilibrium

• The Equilibrium

• Divergence from the Equilibrium Price

• Effects of changes in business environment on the equilibrium

• Price Elasticity of Demand and Supply

• Income Elasticity and Cross Price Elasticity

Week 3: Production and Cost

• The Production Function

• Behaviour of Average and Marginal Products

• Law of Diminishing Returns

• Productivity in the Long Run

• Scale and Scope of Production

• Costs of Different types

• Behaviour of average and marginal costs

• Relationship between costs and productivity

• Costs in the long run

Week 4: Markets - Part 1

• Markets of Different types

• Perfectly Competitive Market

• Profits in a perfectly competitive Market

• Perfect competition in the long run

• Monopoly

• Profits in a monopolistic market

• Sources of Monopoly Power

• The Multi-product firms

• Monopolistic Competition

Week 5: Markets - Part 2

• Oligopoly

• Different Models of Oligopoly

• Why do markets Fail

• Game Theory: a strategic understanding

Books and references

Managerial Economics by Ivan Png.

Instructor bio

Subhashish Gupta

Indian Institute of Management Bangalore

Subhashish Gupta is a Professor at the Indian Institute of Management Bangalore. He has been teaching Managerial Economics to MBA students and in Executive Education programs for more than 15 years. His research interests are in microeconomics and industrial organization theory, particularly in the fields of telecommunications, antitrust economics, economics of organizations and marketing.

Course certificate

Grading Policy:

There will be (a) one Mid-term Internal Assessment and (b) one Final Exam.

Weightage:

· Mid-term Internal Assessment: This will carry 25% weightage. This mid term will have questions from first three weeks.

· Final Exam: This will carry 75% weightage. This final exam will have questions from all the weeks.

Passing Marks:

· You will be eligible for a certificate only if you score minimum 40% in Mid-term Internal Assessment and minimum 40% in Final Exam.

Badge on Certificate:

· If you score 90% or more overall, your certificate will include "badge (gold)" printed.

Final Examination:

· Type of exam: Computer based exam

· Exam Center: You will have to appear at the allotted exam centre and take the exam in person. (You can find the final allotted exam centre details in the admit card (hall ticket)).

· Admit Card: You can download the Admit card (Hall ticket) around one week before the exam.

· QP Pattern: The type of questions may include multiple choice questions, fill in the blanks, essay type (subjective) type, etc. But generally MCQs are commonly provided.

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