School of Business and Management

CHRIST (Deemed to be University)

Course Plan

Program Master of Business Administration

Course Code & Name MBA 132: Managerial Economics

Trimester I Trimester July-October 2022

Hours & Credits (1 Credit = 10 30 hours, 3 Credits
hours)
Course Anchor Dr. A. Sivakantha Setty

Course Facilitators at – Dr. Malini Nair, Prof. Shikha, Prof. Venkata

Bangalore - Central Campus Raman
Course Facilitators at – Dr. Hemalatha, Dr. Sangeetha M
Bangalore - Kengeri Campus
Course Facilitators at – Dr. Subhashree
Bangalore - BGR Campus
Course Facilitators at – Delhi - Dr. Tapas Das
NCR Campus
Course Facilitators at – Pune Dr. Stanny Dias
–Lavasa Campus
Dr A. Sivakantha Shetty
School of Business and Management
Bangalore Central Campus,
Course Anchor & Faculty Christ (Deemed to be University)
Contact information Hosur Main Road, Bangalore 560029
Faculty Cabin No 288 (Second Floor)
Ext No: 4012 9519 Mobile No:
7975878482

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 Course Name: Managerial Course Code: MBA-132
Economics
Total number of hours: 30 Credits: 3
Course This course is offered in the first trimester to equip students with the art of
Description managerial decision making at the firm level. Managerial Economics
introduces students to the concepts of demand, pricing, cost, production, and
markets. The course also demonstrates how all these concepts helps the
manager in taking rational decisions.

Course At the end of the course the students will be able:

Objectives ● To make use of the fundamental concepts of managerial economics in
making optimal decisions.
● To analyze market forces, i.e., demand and supply, their interaction
and their elasticities.
● To examine the dynamics of consumer behaviour in the context of
scarcity and opportunity cost.
● To determine optimum cost and revenue, conduct break-even analysis
in the short and long run.
● To evaluate the equilibrium conditions in different market structures
and subsequently determine the price, output, and profit maximisation.

Terminology** AACSB NBA

Program Learning Goals (PLGs) Program Outcomes (POs)
Program Learning Objective (PLO)
Course Learning Outcomes (CLO) Course Outcomes (COs)

Programme Learning Goals –Course Outcome Matrix (AACSB)/ NBA

Sl. CLO/CO RB Uni CIA PLG PLO PO(Level)
No T t *
1 Demonstrate the 2 I CIA II PLG 2 2.1 PO2 (2)
understanding of
fundamental concepts
of microeconomics in
the context of scarcity,
choices and opportunity
cost.
2 Examine the factors 4 II CIA I PLG 4 4.1 PO4 (3)
determining the CIA II PLG 2 2.3 PO2 (2)
Demand, Supply and
Elasticity.
3 Analyze consumer 4 III CIA III PLG 4 4.2 PO4 (3)
behavior with the help
of utility theory and
indifference curve
2
 analysis.
4 Deduce the cost, 5 IV CIA III PLG 4 4.3 PO4 (3)
revenue, and production
functions applicable to
various business
situations.
5 Assess the different 5 V CIA III PLG 4 4.3 PO4 (3)
market dynamics
(monopoly, duopoly,
oligopoly), intensity of
competition, and
equilibrium conditions.

● When the correlation between CO and PO is more, the level is HIGH (3)
● When the correlation between CO and PO is medium, the level is MEDIUM (2)
● When the correlation between CO and PO is low, the level is LOW (1)

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 Course Mapping

Unit Unit details Week CO- Exercises Hours Pedagogy (teaching Resource/
number (starting PO per learning methods Reference
and end week used)/ activities and details
dates) or class trips/ dates
for assessment

Introduction to 1 CO 1 - 3 Interactive lecture Chapter 1 & 2 Mankiw, N.

Managerial PO2 Gregory. (2015). Principles of
Economics Micro Economics 7th edition
Introduction to 1 CO1 - 1.5 Interactive Lecture Chapter 1 & 2 Mankiw, N.
Managerial PO2 Gregory. (2015). Principles of
Economics, Economic Micro Economics, 7th edition. Pp.
Systems, Principles of 1-14.
managerial economics,
Integration with other
managerial decision-
making process.
Unit I Tools and analysis of 1 CO1 Case 1.5 Case Discussion on Lego Group: An Outsourcing
optimization, role of PO2 Discussion Lego Group: An Journey (Ivey Case).
Government and Outsourcing Journey
private sector, (Ivey Case)
Competition Vs
Cooperation.
Relationship of
economics with other
management subject.
Demand and Supply 2 Field 6 Interactive lecture Chapter 4 Mankiw, N. Gregory.
Analysis Experiment (2015). Principles of Micro
and Problem Economics, 7th edition.
solving &

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 Case Analysis
Definition of demand, CO2 Problem 1.5 Interactive Lecture, Chapter 4 & 5 Mankiw, N.
Law of demand and its PO2 solving Problem Solving Gregory. (2015). Principles of
determinants and Micro Economics, 7th edition.
exceptions, movement PP.67-71.
along the demand
curve and shift in
demand curve.
Demand and supply
relationship.
Unit II Definition of supply, CO2 Problem 1.5 Interactive lecture & Chapter 4 & 5 Mankiw, N.
Law of supply, PO2 solving problem solving Gregory. (2015). Principles of
Movement along the Micro Economics, 7th edition. Pp
supply curve and shift 73-79.
in supply curve,
Factors affecting
supply.
Market equilibrium CO2 Case Analysis 1.5 Case Analysis on Smelting in South Africa:
and pricing, floor price PO2 Aluminium Alusaf’s Hillside Project .(HBS
and ceiling price. Smelting in South Case)
Application of demand Africa : Alusaf’s
and supply analyses. Hillside Project
(HBS Case)
Concepts of elasticity, CO2 Field 1.5 Field or Online Chapter 5 & 6 Mankiw, N.
degree, determinants PO2 Experiment, Estimation of Gregory. (2015). Principles of
& types, practical Problem Elasticity of Micro Economics, 7th edition. Pp.
implication, Solving Demand on Goods 90-101.
Relationship of and Services
Revenue and elasticity
of demand, Demand
forecasting and its use
in demand.
Consumer Behaviour 4&5 CO3 Problem 6 Interactive Lecture Chapter 7 Mankiw, N. Gregory.
PO4 Solving (2015). Principles of Micro
Economics, 7th edition.

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 Introduction to CO3 Problem 1.5 Interactive Lecture Chapter 7 Mankiw, N. Gregory.
Consumer behaviour, PO4 Solving & Problem Solving (2015). Principles of Micro
Cardinal and Ordinal Economics, 7th edition. Pp.136-
approach to Utility 150.

Consumer’s CO3 Problem 1.5 Interactive Lecture Chapter 7 Mankiw, N. Gregory.

Unit III equilibrium using PO4 Solving and Problem Solving (2015). Principles of Micro
Indifference curve Economics, 7th edition. Pp. 136-
analysis and Consumer 150.
surplus
Application of CO3 Case Analysis 3 Case Analysis on Montreaux Chocolate USA: Are
Indifference curve PO4 Montreaux Americans Ready for Healthy
analyses in policy Chocolate USA: Are Dark Chocolate (HBS Case)
making. Americans Ready
for Healthy Dark
Chocolate (HBS
Case)
Analysis of 6&7 CO4 Problem 6 Interactive Chapter 13 Mankiw, N.
Production, Costs PO4 Solving & Lecture, caselets Gregory. (2015). Principles of
and Revenues Case Analysis and Problem Micro Economics, 7th edition.
Solving
Production functions, CO4 Problem 1.5 Interactive Lecture Chapter 13 Mankiw, N. Gregory.
Law of Variable PO4 Solving Mathematical (2015). Principles of Micro
proportions. examples for practice Economics, 7th edition. pp. 259-
265.

Returns to scale and CO4 Problem 1.5 Interactive Lecture Chapter 13 Mankiw, N. Gregory.
economies of scale. PO4 Solving (2015). Principles of Micro
Unit IV Producers’ surplus. Economics, 7th edition. Pp.266-
274.
Costs, Isoquants, least CO4 Problem 1.5 Interactive Lecture Chapter 13 Mankiw, N. Gregory.
cost combination types PO4 Solving Mathematical (2015). Principles of Micro
of costs, short run examples for Economics, 7th edition. Pp.275-
costs and long run practice 279.
cost.

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 Revenue Analysis CO4 Case Analysis 1.5 Case Analysis on Black River Farms (Ivey Case)
–TR, AR and MR, and PO4 Black River Farms
break-even analysis of
short term business
profits.
Market Structures and 8 to 12 CO5 Problem 9 Interactive Lecture Chapter 14, 15, 16, 17 Mankiw, N.
Decision Making PO4 Solving & Mathematical Gregory. (2015). Principles of Micro
Case Analysis examples for practice Economics, 7th edition.

Market types, CO5 Problem 1.5 Interactive Lecture Chapter 14, 15, 16, 17 Mankiw, N.
characteristics, Perfect PO4 Solving Mathematical Gregory. (2015). Principles of
competition features examples for Micro Economics, 7th edition. Pp
practice 280-293.

Unit V Price determination CO5 Problem 1.5 Interactive Lecture Chapter 14, 15, 16, 17 Mankiw, N.
and equilibrium in the PO4 Solving Mathematical Gregory. (2015). Principles of
short run and the long examples for Micro Economics, 7th edition.
run. practice Pp.280-293.
Monopoly - features, CO5 Problem 1.5 Interactive Lecture Chapter 14, 15, 16, 17 Mankiw, N.
equilibrium condition, PO4 Solving Mathematical Gregory. (2015). Principles of
Price discrimination. examples for Micro Economics, 7th edition.
practice Pp.299-322.
Monopolistic CO5 Problem 1.5 Interactive Lecture Chapter 14, 15, 16, 17 Mankiw, N.
competition – features PO4 Solving Gregory. (2015). Principles of
Micro Economics, 7th edition. Pp.
329-345.
Oligopoly - Cartels as CO5 Case Analysis 1.5 Case Analysis on Tanner Pharmaceuticals and the
one of the features of PO4 Tanner Price of New Drug (HBS case)
Oligopoly. Pharmaceuticals and
the Price of New
Drug (HBS case)
Sustainability business CO5 - 1.5 Interactive Lecture Chapter 14, 15, 16, 17 Mankiw, N.
model - Circles of PO4 Gregory. (2015). Principles of
Sustainability Micro Economics, 7th edition.

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 ASSESSMENT OUTLINE
Component Description Units Maximum Total
marks
CIA1 Individual Report on Estimation of Impact of II 15 15
Elasticity of Demand and its Types on Pricing
Decisions of Managers.
CIA2 Case Analysis on Hurricane Sandy: Supply, I, II, III 25 25
Demand and Appropriate Responses to the Gas
Shortage
CIA3 Video Interview of the Entrepreneur on Unit IV,V 15 15
Economics
ETE End Term Exam I, II, III, IV, 30 30
V.
Attendance 5 5
Class Class Participation I, II, III, IV, 10 10
Participation V.
Total Evaluation 100 100

ASSESSMENT DESCRIPTION
CIA 1- Title: Individual Report on Estimation of Impact of Elasticity of Demand and its Types on Pricing Decisions of Managers (for
15 Marks)
Detailed Description with submission deadline:
Assignment Description:
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The report will require students to apply their knowledge of economic concepts, especially the market forces like demand and
supply, elasticity of demand, and its variants, on pricing decisions related to goods and services.

The student has to conduct a field study or survey based on price and demand of essential items from household, kirana store
sales, and calculate the Price Elasticity of Demand, Income Elasticity of Demand and Cross Elasticity of Demand.

The student should take examples of five products or services for each type of elasticity of demand, measure the elasticity of
demand for these products, and elucidate the implications for managers to take pricing decisions.

Expected Outcomes:
1. Select the products/services.
2. Draw price, income vs Demand schedules
3. Apply different types of Elasticity of Demand.
4. Analyse data on different elasticities of demand.
5. Identify appropriate pricing decisions.

Submission Guidelines:
1. Individual Assignment
2. August 20th 2022 is the last date for the submission of assignment.
3. Minimum 6 pages and maximum limit should be 8 pages.
4. Late submission of assessment tasks will be penalized at the following maximum rate:
● 5% (of the assessment task’s identified value) per day for the first two days from the date identified as the due
date for the assessment task.
● 10% (of the assessment task’s identified value) for the third day.
Assignment Linked with CLO
CLO 2

CIA I Rubrics
CIA Evaluation Rubrics (AACSB and NBA)
CIA I Rubrics
PLG PLG 4 CRITICAL THINKING
Objective PLO 4.1: Apply data-based decision making to address business problem.
Total Marks 15 Marks
Criteria/ CO Excellent (3) Average (2) Needs Improvement (1)

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 Weightage* PLO PO
Selection of the CO2 Selection of products and Selection of products is mostly Selection of products or
products/services. PO4 services are correct. Exhibits in- right with minor errors. Exhibits services is incorrect.
depth understanding of the incomplete understanding of the Demonstrated lack of
concept. concept. understanding of the concept.
Application of the CO2 Calculations are complete and Calculations are partially correct Calculations are incorrect.
Different Types of PO4 correct. Exhibits in-depth and complete. Exhibits partial Demonstrated lack of
Elasticity of understanding of the concept. understanding of the concept. understanding of the concept.
Demand. Stepwise calculations are Steps are missing in calculation. No steps are followed.
performed
Making usage of CO2 Demonstrates the understanding Demonstrates adequate Exhibits poor inferences or no
the data for PO4 of facts, theories, principles and knowledge in analysing and inferences from the analysis of
interpretation practices in analysing and interpreting the data on different data on elasticities and its
interpretation of data, applying it elasticities of demand. types.
to the real life scenario.
Produce CO2 Pricing implications are based Pricing implications are mostly Pricing implications are
appropriate Pricing PO4 on calculation of elasticity. correct with little errors. incorrect. Exhibits lack of
Decisions Exhibits in-depth understanding Exhibits incomplete understanding of the concept.
of the concept. understanding of the concept.
Writing Mechanics CO2 Spelling, Grammar and Spelling, Grammar and Spelling, Grammar and
PO4 Punctuations are totally error Punctuations have some errors. Punctuation errors are too
free. many.

CIA 2 – Case Study Analysis (for 25 Marks)

CIA II Rubrics –CASE ANALYSIS (AACSB and NBA)
PLG PLG 2
Program Learning PLO 2.1 2.2 Understand the context of business problem and suggest solutions.
Objective
Total Marks 25 Marks
Criteria/ CO Excellent (5) Average (3) Needs Improvement (2)
Weightage * PO
Understanding of CO1 Demonstrates a sophisticated Demonstrates an acceptable Demonstrates an inadequate
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the Issue/Topic CO2 understanding of the Issue(s) or level understanding of issue(s) understanding of issue(s) or
CO3 Topic(s) or topic(s) topic (s)
PO2
Analysis CO1 Presents an insightful and Presents superficial analysis of Presents an incomplete analysis
CO2 thorough analysis of all issues some of the issues identified. of the issues identified.
CO3 identified.
PO2
Evaluation CO1 Supports diagnosis and opinions Supports diagnosis and Supports diagnosis and opinion
CO2 with balanced and critical view opinions with limited reasons with few reasons and limited
CO3 and interpretation is both and evidence and provides one evidence. Argument is one sided
PO2 reasonable and objective. sided argument. and not objective.
Recommendation CO1 Presents detailed, realistic, Presents realistic, appropriate Presents realistic, appropriate
s CO2 appropriate recommendations recommendations clearly recommendations with little or
CO3 clearly supported by data and supported by data and inadequate data and information.
PO2 information. information
Writing CO1 Writing demonstrates a Writing is accomplished in Writing is unfocused, rambling
Mechanics CO2 sophisticated clarity, terms of clarity and and contains serious errors.
CO3 conciseness, correctness and conciseness and contains few
PO2 extremely well organised. errors.

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 CIA III Assignment Description
Video Interview on Unit Economics for Start Ups (Group Assignment for 15 Marks)
Assignment Description
Students will require to apply the knowledge of various cost and revenue concepts to arrive at the calculation of the unit economics
which finally determines the profitability and success of the business model.
The students have to conduct a full-fledged video interview with the founder/promoter of a start-up of their choice and find out how
they are arriving at the calculation of unit economics and how a particular start up is managing its unit economics to remain
sustainable in the long run.
Before each group interviews the promoter or founder of the start-up, they have to show the questionnaire for the interview and seek
written permission from the concerned faculty.
Assignment Outcome
1. Discover the Unit Economics in the context of optimum cost and revenue combination.
2. Analyse the significance of Unit Economics for achieving the break-even for a startup.
3. Appraise the Management of Unit Economics in the startup.
4. Decide the strategies of the startup to deal with competition.
Submission Guidelines
1. October 7th 2022 is the last date for submission.
2. Assignment should be submitted in google classroom
3. This is Group Video Presentation and Discussion in Class.

Assignment linked with CLO :

CLO 04, CL0 05

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 CIA III Rubrics
CIA III-B Evaluation Rubrics (AACSB and NBA)

PLG PLG 4
Objective PLO 4.3 4.4
Total Marks 15 Marks
Criteria/Weightage CO Excellent (3) Average (2) Needs Improvement (1)
PO
Discover the Unit CO Exhibits extended knowledge (facts, theory, Exhibits basic understanding of Demonstrates wrong
Economics in the context 4 practices and principles, real life examples) unit economics and cost and understanding of unit
of optimum cost and CO on the unit economics in the context of revenue combinations without economics and cost and
revenue combination. 5 optimum cost and revenue combinations. real life examples. revenue combinations
PO4
Analyse significance of CO Exhibits extended knowledge on unit Exhibits basic understanding of Exhibits inability to
Unit Economics for 4 economics and break-even analysis with real unit economics and its relevance understand the concept of
achieving the break-even CO life application. in break-even analysis. break-even and unit
for a start-up. 5 economics for start-ups.
PO4
Appraise the management CO Exhibits in detail the real-life application of Exhibits the application of unit Exhibits the wrong
of Unit Economics in a 4 unit economics in the start-up with high economics in the start-up with application of unit
start-up CO quality data. insufficient data economics in the start-up
5 without the support of data.
PO4
Decide the strategies of CO Able to decide the type of competition and Able to decide the type of Able to decide the type of
start-up to deal with 4 associate it with at least three characteristics competition and associate it competition and associate it
competition CO of the market. Elicits information on the with at least two characteristics with at least one
5 main competitors, and strategies to cope up of the market . Not able to elicit characteristic of the market.
PO4 with competition. information on the main Not able to elicit information
competitors, and strategies to on the main competitors.
cope up with competition. No strategy strategies to
cope up with competition
Elocution CO Student uses a clear voice and correct Student voice is low and Student mumbles and
4 precise pronunciation of presentation so incorrect pronunciation of incorrectly makes the
CO that all can hear. terms. Difficulty in hearing pronunciation and speaks
5 the presentation. in too lowly voice.
PO4

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Class Participation Analysis (10 Marks):

The class participation of the students will be evaluated through surprise MCQs based on FIVE Cos (For example, there are 5 COs… and 5 surprise
MCQ Quiz can be conducted for awarding 10 Marks)

Distribution of 10 Marks for Class Participation

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 Sl. No CLOs Units Covered Quiz Marks Converted
1 Demonstrate the understanding of fundamental I 2
concepts of microeconomics in the context of
scarcity, choices and opportunity cost.
2 Examine the factors determining the Demand and II 2
Supply, calculate elasticities and forecast demand.
3 Analyze consumer behavior with the help of utility III 2
theory and indifference curve analysis.
4 Deduce the cost, revenue, and production functions IV 2
applicable to various business situations.
5 Assess the different market dynamics (monopoly, V 2
duopoly, oligopoly), intensity of competition, and
equilibrium conditions in different types of markets.
Total Marks 10

Essential Readings

1. Mankiw, N. Gregory. (2015). Principles of Micro Economics, 7th Edition, Cengage Learning Private Limited, New Delhi-110092.

Suggested Reading

1. Webster, T. J., (2015), Managerial Economics: Tools for Analysing Business Strategy, Lanham: Lexington Books. Available for reading for free
from Christ Library Online.
2. Keat Paul, K Young Philip, Erfie Steve (2017) Managerial Economics, 7th Edition, Pearson Publishers.
3. Piyali Ghosh, Geetika, Purba Roy Chowdhury (2017) Managerial Economics, 3rd Edition, Tata McGraw Hill Publishers.
1.

Prepared by
(Faculty in-charge) Reviewed by Approved by
Dr. A. Shivakanth Shetty HoD

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