Course Title
Credits
Type
Session Duration
Term
Year
Name of Faculty
:
:
:
:
:
:
Office
Economic Analysis and Business Decision Making
1
Compulsory
75 minutes
I
2023
e-mail
Consultation Time for
students
Dr. Diti Goswami
07
diti.goswami@iimrohtak.ac.in Time – 4:00 to 5:00
Days – Thursday and
Friday
Indian Institute of Manage
Course Outline
Dr. Shweta Bahl
14
shweta.bahl@iimrohtak.ac.in
Time - 4:30 to 5:30
Days – Wednesday and
Tuesday
Dr. Rima Mondal
203
rima.mondal@iimrohtak.ac.in
Time – 3:00 PM
Days – Monday and
Friday
__________________________________________________________________
Introduction
A basic understanding of the concepts and tools of economic analysis is essential for
anyone who aspires to be a professional manager. Economic Analysis and Business
Decision Making will teach participants the rationality of economic decision making
concerning households, business firms, markets, factors of production and so on. The
1
course serves as the basis for understanding consumer behavior, producer behavior and
their interaction in markets, and is useful in promoting an understanding of the powerful
tools of decision making by firms that help to solve business and other problems.
Course Objectives
The specific objectives of the course are:
1. To familiarize the students with basic economic concepts
2. To understand the application of economic principles in managerial decisions
3. To sharpen the analytical skills of students by assimilating the knowledge of
economic concepts with decision making techniques
4. To gain a deeper understanding of the behaviour of consumers and firms by using
the economic tools and techniques
Learning Outcomes
 Understand that economics is about the allocation of scarce resources, that
scarcity forces choice, tradeoffs exist and that every choice has an opportunity
cost.
 List the determinants of the demand and supply for a good in a competitive
market and explain how that demand and supply together determine equilibrium
price.
 Understand the role of prices in allocating scarce resources in market economies
and explain the consequences of price controls.
 Understand the costs of production and how profit-maximizing firms determine
how much to produce. Be able to distinguish between long-run decisions and
short-run decisions.
 Distinguish between perfect competition and imperfect competition and be able to
explain the welfare loss in non-competitive markets.
Pedagogy
The pedagogy would be a mix of Lectures, Discussion, Cases/examples, Quiz and term
exams.
Evaluation Scheme
Quiz
Class Preparedness*
Project (and/Presentations)
Mid Term Exam
Final Exam
10%
10%
20%
30%
30%
*For class participation and preparedness coherent discussions will be considered.
Brief Outline
The main modules of the course are:
1. Theory of Consumer Behaviour
2. Theory of Production
3. Theory of Costs
2
4. Market Structure: Competitive and Non-competitive markets
References
1. Text Book: Principles of Microeconomics by n. Gregory Mankiw, 7th edition.
Cengage.
2. Other Readings (To be arranged by students)
Dominick Salvatore, Principles of Microeconomics, 5th Edition (International Version),
2014, OXFORD University Press.
Managerial Economics: Concepts and Applications by Christopher R Thomas and S
Charles Maurice, 10th Edition, 2014, The McGraw-Hill Companies.
Special Instructions
Please read and prepare well in advance for case presentation and discussion in the class.
Case/reading for each session is indicated in the Session Plan. The sessions will be of 75
minutes duration. R indicates additional readings. C indicates cases.
Session Plan
Session
No.
1
Topic and Sub-topics
Reference
(Book chapter /
Page numbers
from the book)
Introduction
of
Economics: Chapter 21
Preferences and Utility
2
Consumer Choice: Indifference Chapter 21
Curve
and
Consumer
Optimization
3
Theory of Demand and Supply: Chapter 4
Equilibrium
3
Case /
Readings
Consumer
Preference for
Rice. Authors:
George, P S;
IIMA Cases,
Reference No:
CMA0253
NICM Cultural
Committee.
Authors: Joshi,
N U; IIMA
Cases,
Reference No:
ECO0160
A case study of
the supply and
demand for
morning
4
Theory of Demand and Supply: Chapter 4
Shifts and Movement
5
Theory of Demand and Supply: Chapter 4
Changes in Equilibrium
6
Elasticity and its Application
Chapter 5
7
Theory of Production:
Short and Long Run
Chapter 13
8
Theory of Production:
Isquants and Optimization
Chapter 13
4
kindergarten by
Nancy Ruth
Fox: Case 1
A case study of
the supply and
demand for
morning
kindergarten by
Nancy Ruth
Fox: Case 2
Fee Regulation
in Private
Schooling: The
Case of Gujarat
Authors:
Bansal, Vertika;
Jain, Tarun;
Kumar,
Shivam; Sarda,
Priyanka; IIMA
Cases,
Reference No:
ECO0366EX
Demand
Elasticities for
Pulses and
Public Policy
Options
published in
IIM A Case
Centre by
Ravindra H
Dholakia.
Reference No
ECO0362
Global Farmer
and the Future
of Soybean
Production
By: Ray A.
Goldberg,
Kevin Allison
Torrent Gujarat
Biotech Limited
(A)Authors: Ch
andra,
9
Theory of Costs: Short and Long
Run
Chapter 13
10
Theory of Costs:
Chapter 13
Economies and diseconomies of
scale
11
Markets: Perfect competition
Chapter 14
5
Pankaj; Chaudh
uri,
Shekhar; Dixit,
M R; Rao,
Sreenivas
S; Rao, V
Venkata;
Reference
No: BP0263 Pa
ges: 9 Publishe
d on: 8,
January,
2001
Increasing the
efficiency of
delivery
operations and
customer
profitability
analysis with a
time-driven
activity-based
costing model
Emerald
Emerging
Markets Case
Studies
SpaceX,
Economies of
Scale, and a
Revolution in
Space Access.
By: Matthew C.
Weinzierl,
Kylie Lucas
and Mehak
Sarang
EBay: Towards
A Perfectly
Competitive
Market.
December
2010.
International
Journal of
Economics and
12
Imperfect competitions –
Monopolistic competition
Chapter 16
13
Imperfect competitions –
Monopoly
Chapter 15
14
Price discrimination under
monopoly
Chapter 15
15
Oligopoly: Cournot and Bertrand
solutions
Chapter 17
16
Oligopoly: Stackelberg and
market sharing model
Chapter 17
6
Business
Research
9(3):65-70.
DOI:
10.19030/iber.v
9i3.536.
Monopolistic
competitive
market in
religion: a
case study of
Hindu temples
by: Tuhin K.
Das & Ishita
Datta Ray
Managing
natural
monopolies:
interplay of the
regulator and
telecom
companies in
India. By Rima
Mondal and
Nivisha Singh
Ready-to-Eat
Breakfast
Cereal Industry:
Coupon
Competition
and Price
Discrimination.
By: Peter J.
Coughlan
Is It Time To
Break Up
Amazon,
Apple,
Facebook, or
Google? by
James Heskett
The
Organisation of
Petroleum
Exporting
Countries
17
Sweezy’s Kinked demand curve
model
Chapter 17
18
Externalities
Chapter 10
19-20
Review/Presentations
7
(OPEC)
Cartel_Salvator
e 2014, P. 339.
Something is
rigid in
Denmark_Peter
sen and
Lewis_ME_199
9_P. 350.
Ilva Steel
Taranto:
Providing and
Polluting (A)
By: Lena G.
Goldberg,
Vincent
Dessain,
Ottavia Pesce,
Karol Misztal