Indian Institute of Management, Kozhikode Academic year 2003-4
PGP 105: Microeconomics Instructors: Pulapre Balakrishnan and Suma Damodaran
Objective Microeconomics is at the centre of mainstream economics. Its subject matter is the behaviour of households and firms. The objective of this course is to equip the manager with the methodology of microeconomics, thus enabling an evaluation of options at the level of the firm in relation to the wider environment. Starting out with an exposition of the theory of decision-making by households and firms, in this course the participant will be encouraged to develop a comprehension of how markets work and an appreciation of the situations in which they fail.
1. Introduction to the market economy, an overview.
2. Decision making in the household: Consumer choice; Demand and its determination.
3. Decision making in the firm: Production; Cost.
4. Equilibrium in a competitive market.
5. Market power and its implications.
6. The economics of information.
7. Market failure: Externalities and Public goods. Pedagogy and learning
This is a lecture course. However, the classroom situation is not meant exclusively for teaching. It is intended to instill an interest in and a critical understanding of both the issues and the literature. The material prescribed is Microeconomics by Michael Katz and Harvey Rosen, McGraw Hill, 1998. Evaluation The evaluation will take the form of two class-tests and a mid-Term test constituting a module amounting to fifty percent and a final exam accounting for fifty percent of the total attainable score.