Rashtreeya Sikshana Samithi Trust

R V Institute of Management
Jayanagar Bangalore

COURSE DOCKET

I semester MBA
1.1 Economics for managers

October 2018-January 2019

Ms. Anitha D’silva

Assistant Professor
Department of Marketing

Ms. Rashmi Shetty

Assistant Professor
General Management

The articles and reading materials contained in this docket are for classroom discussion only
 Table of Contents
Sl.No Particular

01 Part- A
02 Part- B Session Plan
03 Part- C Bangalore university Syllabus
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05

05

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 Rashtreeya Sikshana Samithi Trust

R V Institute of Management
Jayanagar Bangalore

Course MBA Programme

Batch 2018-2020
Semester I
Subject name Economics for Managers
Credits 4 credits per week
Total hours 56 hours
Course Instructors Prof. Anitha D’silva
Prof. Rashmi Shetty

Part- A

INTRODUCTION:

Economics for Managers provides an introduction to both microeconomics and macroeconomics for
global business managers. The economic tools presented aid the analysis, decision-making and
strategic planning that is required of managers. The inclusion of relevant theory is supplemented with
an emphasis on practical applications of that theory to real-world business problems. Microeconomics
is the study of individual decision-making units (consumers and firms) and their interaction in a
market economy. An understanding of this assists managers when faced with choices and issues such
as how much to produce, what price to charge, whether to shut down production in the short run and
the impact of new, cheaper substitute products. Macroeconomics is focused on aggregate economic
behaviour. Macroeconomic principles assist managers in their need to analyse, predict and respond to
changes in an uncertain economic environment. Topics covered include inflation, unemployment and
the influence of monetary and fiscal policy. Issues in the international economy affect individual
businesses. Consequently, the basics of international economics are discussed, including the effects of
international trade policies and the exchange rate.
COURSE OUTCOMES:
At the successful completion of this course the students will have demonstrated the ability to:
CO1: Understand the internal and external decisions made on economic theories.
CO2: Distinguish between micro and macro-economic perspective of business and functions
of management.
CO3: Analyze real world business problem with systematic theoretical framework
CO4: Design strategies based on demand and supply concepts, consumer behavior, costing,
pricing, market environment, market structures.
CO5: Take optimal business decision by integrating concepts of economics and statistics.

KEY CONCEPTS:

Module 1:
 Introduction to Economics,
 Kinds of Economic Decisions, Significance and applicability of
 Managerial Economics in decision making,
 Role and responsibilities of Managerial Economics,
 Economic principles relevant to managerial decision making,
 Opportunity cost &Production possibility curve,
 Concept of increments and Margin,
 Discounting principle,
 Theory of firm.

Module 2:
 Demand theory and analysis
 Elasticity of Demand and its role in Managerial decision making
 Demand forecasting & Techniques
 Consumers Equilibrium & Cardinal utility approach
 Indifference curve approach
 Theory of revealed preference
  Consumer surplus

Module 3:
 Laws of variable proportions and Return to scale
 Economies of scale
 Isoquants and Isocost
 Optimum combination of inputs
 Elasticity of substitutions
 Cost concepts: Kind of costs,
 Short run and long run cost functions
 Interrelationship of cost
 Cost reduction and cost control.

Module 4:
 Concept of Market equilibrium and Revenue curves
 Different market structures
 Price determination and firms equilibrium under perfect competition
 monopolistic competition
 oligopoly and monopoly
 Price discrimination,
 International price discrimination and dumping
 Pricing methods

Module 5:
 Theories of factor pricing: wages and rent
 Theories of interest and investment decisions
 Profit and profit functions.
Module 6.

 National Income: Concept and measurement

 Circular flow of economic activities
  Keynesian analysis: Keynesian theory of employment, consumption function, investment
function, multiplier,
 Relevance of Keynesian economics in underdeveloped countries
 Business cycle, Money supply and Inflation

MODULE OUTCOMES
Module 1:
MO1 To understand the kinds of economic decisions of a Manager
MO2 To evaluate the principles of opportunity cost and Production possibility curves

Module 2:
MO3 To Understand the theories and process of consumer behaviour in the market.
MO4 To Analyse Demand forecasting Techniques and plot Consumers Equilibrium

Module 3:
MO5 To understand the concepts of Isoquants and Isocost, Elasticity, Cost concepts
MO6 Able to create an effective cost curves in Short and long rune

Module 4:
MO7 To identify the key components of different market structures and firms equilibrium
MO8 To evaluate various types of Pricing methods

Module 5:
MO9 To understand the conceptual framework of factor pricing- wages, rent, profits,
MO10 To assess strategies used by a manager as a part of Profit and profit functions.

Module 6:
MO11 To understand the concept and measurement of National income.
MO12 To evaluate the theory of Kenynesian related to employment, money supply, business cycle
and inflation.
INSTRUCTIONS METHODS/ PEDAGOGY/ TOOLS USED:

1. Visual presentation & Demonstrations

2. Discussions and case-lets

3.Experts from Industry sharing experience

4. Visual presentations

5. Articles review

6. Project based work

EVALUATION PLAN

A. Test and Examination

Evaluation Marks Modules Duration (in Minutes) CO tested
covered
Test 1 25 1,2 60 minutes Closed book
Preparatory 70 1,2,3,4 180 minutes Closed book

INTERNAL EVALUATION FOR I SEMESTER

Surprise test & Preparatory 10 Marks

Assignment 5 Marks
Attendance 5 Marks
Review of article 5 Marks
Presentation 5 Marks

B. Other Assessment
Sl. No Evaluation Unit of Evaluation Time frame
Item
1 Quizzes Individual Every session
2 Case study Individual During class hours
3 Surprise test Individual On spot
4 Blogs discussion Individual I day in advance

Contribution to the Learning Process – Written case study:

Five case lets based on modules would be used to assess the participation in class discussion and
contribution to the learning process. Students will get cases in hand before the session to be prepared
thoroughly. Additional readings, book chapters and try to make connections between these and the topic
being discussed

TEACHING AND LEARNING RESOURCES

a) www.bibilomania.com/nonfiction/smith/wealth/index.html
b) www.planningcommission.gov.in/
c) www.wsj.com
d) www.netec.wustl.edu/WebEc/WebEc.html
e) www.nber.org
f) www.economist.com
g) www.slate.com
h) Economic and Political weekly, Mumbai, Economic & Political Weekly Research Foundation
i) Indian Economic review, Delhi school of Economics
j) Indian Economic Journal, Indian Economic Association

RECOMMENDED READINGS & ESSENTIAL READINGS

1. Dwivedi D.N, “Managerial Economics”, Vikas Publication

2.D.D. Chaturvedi, “Business Economics”- Galgotia Publishing Company

3. V. K. Xavier, “Economics for Managers”- Magis Publications

4. Atmanand, “Managerial Economics”- Excel Books

REFERENCES

1. RitikaSinha : Managerial Economics, SBPD Publishing House

2. Damodaran Suma: Managerial Economics, Oxford University Press

3. Petersen Lewis & Jain: Managerial Economics, Pearson

4. Paul A Samuelson and William D Nordhaus : Economics, McGraw Hill

5. Geethika, Ghosh&Choudary : Managerial Economics, McGraw Hill

COURSE FACILITATOR
1. Prof. Anitha Dsilva
Assistant Professor, RVIM
2. Prof. Rashmi Shetty
Assistant Professor, RVIM