Course Code: ECO 501 Level: MBA Semester: Semester I Credit Hours: 4 Course Objective

Business Economics
Course Code: ECO 501 Level: MBA

Semester: Semester I Credit Hours: 4
Course Objective:
The course aims to introduce students to managerial decision making revolves around
attempts to optimize under conditions of risk or uncertainty and therefore, it stands to
gain by the use of economic analysis. Hence, understanding and interpreting economic
issues is a key management responsibility. Economics for managers is designed to
provide a rigorous treatment of those aspects of economic theory and analysis that are
most useful for managerial decision making.
No Information on Course
1 Name of the Course: Business Economics
2 Course Code: ECO 501
3 Name(s) of Academic Staff:
4 Rationale for the inclusion of the course/module in the programme:
It aims to enable students to understand the process of economic and business
decisionmaking and its effects on themselves and others, now and in the future.Students
learn to appreciate the interdependence of decisions made, as well as the effects of these
decisions on consumers, businesses, governments and other economies.
5 Semester/Year : 1st Year 1st Semester
6 Total Guided and
Student Learning Independent Independent
Face to Face
Time (SLT) Learning Time Learning Time
L=Lecture L T P O
T=Tutorial 64 40 - 6
P=Practical 50
160
O=Others
ILT= Individual
Student Learning
Time
7 Credit Value: 4
8 Prerequisite: None
9 Course Learning Outcomes:
At the end of this course, student will be able to:
• Develop a better understanding of Business Economics, Basic concept and
principles, and Theory of firm.
• Have better understanding on Demand Analysis Forecasting.
• Equip students with the different theories of Production.
• Make understand to students about Pricing Decisions and Strategies.
10 Transferable Skills:
• Analytical skills
• Interpersonal skills
• Synthesis and creativity
• Problem solving
• Leadership skills
11 Teaching-Learning and Assessment Strategy:

• Lectures
• Interactive group work Lectures with many Examples
• Conferences given by Professors
• Syndicate working on Case studies
• Individual Assignments
12 Synopsis:
• Introduction to Business Economics
• Basic concept and principles
• Theory of firm
• Demand forecasting
• Quantitative method of demand forecasting
• Production function and optimal combination of inputs
• Concept and various theories related to oligopoly markets
• Game theory
• Market failure
• Pricing
13 Mode of Delivery: Lecture,

tutorial
14 Assessment method and type:
Assessment method Percentage
Assignment 1 10%
Assignment 2 10%
Quiz 10%
Mid Examination 20%
Final Examination 50%
15 Content outline of the course/module and the SLT per topic : Refer to Lecture Plan
16 Main references supporting the course :
• Samuelson, William F. and G. Marks, Stephen (2011), Managerial Economics (7 th
edition), USA: John Wiley & Sons, Inc.
• Thomas, Christopher and Maurice, S. Charles (2010), Managerial Economics:
Foundations of Business Analysis and Strategy (10th edition), New York: McGraw
Hill
• Salvatore, Dominik (2012), Managerial Economics in a Global Economy,- New
York, McGraw Hill. Press.
• LipseyRichad G, Purvis, Douglas D., Sparks, Gordon R. and Steiner, Peter O.
(1988), Economics, USA: HarperCollins Publishers Others
references supporting the course:
• LipseyRichad G, Chrystal K. Alec (2007), Economics (11 th edition), USA: Oxford
University Press
• Peterson, HC and Lewis, WC (2002), Managerial Economics, New Delhi,
Prentice Hall of India.
• Mankiw, NG (1998), Principles of Economics, Orlando, The Dryden Press
(Harcourt Brace College Publishers).
• Baye, MR (2010), Managerial Economics and Business Strategy, New York,
McGraw Hill.
17 Other additional information: Nil
18. Course outline:

No LESSON PLAN Lectur Tutori IL Tota
. e al T l
1. Introduction to Business Economics:
Concept and scope of business economics, use of
business economics in business decision making.
Basic concept and principles:
10 3 5 18
a) Measuring profit;
b) Production possibility curve;
c) Opportunity cost; and
d) Risk and uncertainty.
2. Theory of firm:
Profit maximization theory, Baumol's theory of sales
revenue maximization, Wealth maximization, Morris's
8 5 6 19
hypothesis of maximization of growth rate,
Williamson's model of managerial utility function,
Behavioral theories.
3. Concept of price, income, cross and promotional
elasticity of demand. Measurement of different types
6 3 5 14
of elasticity of demand. Relationship between price
elasticity and revenue.
4. Demand forecasting: Concept and purpose of
Demand Forecasting, techniques demand forecasting,
Qualitative methods of demand forecasting: Survey
technique, Market experiment.
Quantitative method of demand forecasting: Time 10 5 7 22
series analysis, Smoothing technique, Econometric
technique and Barometric technique, Limitations of
forecasting
5. Case Base Presentations and Assignments - 2 2 4
6. Production function and optimal combination of
inputs: One variable input and two variable inputs,
6 3 4 13
and return to scale, Economies of scale and economies
of scope.
7. Market structures and pricing decisions
Concept and various theories related to oligopoly
markets:
Pricing in cartel, price leadership, kinked demand
curve model. 8 5 6 19
Game theory:
Strategies and pay off matrix, Dominant strategy,
Nash equilibrium and prisoner's dilemma, Application
of game theory to oligopolistic strategy.
8. Market failure 8 5 6 19
Concept and sources: Market power and deadweight
loss, Externalities, Public goods and Incomplete
information, Government response to market failure:
Regulating competition (Antitrust) policy, Price and
utility regulations, Patent system, Taxes and
Subsidies, Operating controls, Regulations of
environment pollution, public choice theory.
9. Pricing:
Pricing practices, Cost plus pricing, Incremental cost
pricing, Product life cycle based pricing, Multiple
8 5 5 18
product pricing, Peak load pricing, Auction pricing,
Transfer pricing, Export Pricing, International Price
discrimination.
10. Final Presentation & Assignment Activities with
- 4 4 8
report submission
TOTAL 64 40 50 154

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Business Economics

Course Code: ECO 501 Level: MBA

11 Teaching-Learning and Assessment Strategy:

13 Mode of Delivery: Lecture,

18. Course outline:

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