Jindal Global Business School

Course Outline

Course Title Microeconomics

Core or Elective Core
Program and Batch IBM-2020, Sem-1
Semester &Academic Year Fall-2020
Credits 3
Discipline/Area Social Sciences and Humanities
Provide details if this course is a Prerequisite for Prerequisite for Macroeconomics course in
any course/specialization Spring 2021
Name of the Faculty Member/Course Instructor Dr. Hanna Olasiuk

Contact Details of the Faculty Member holasiuk@jgu.edu.in

Contact Details of Support Staff Pranati Dash – pdash@jgu.edu.in
Faculty Member’s Open Office Day/s & Time Dr. Hanna Olasiuk, Thursday 15.30-16.30

Introduction to the Course

This course is aimed at introducing the students to the theory and application of economic
principles, methods, and models. Students will be exposed to a variety of techniques which allow
them to solve specific managerial problems like costs, prices, revenues, information asymmetry,
market structures. Students will get an understanding of consumer choice and behaviour.

Course Learning Objectives

On successful completion of the course, students should be able to:
CLO 1. Understand microeconomic principles and identify main microeconomic problems
CLO 2. Chose appropriate methods and techniques to solve managerial problems
CLO 3. Understand the interplay between national and global economy in context of
microeconomics
CLO 4. Exhibit economic way of thinking in written and oral communication related to the
issues discussed

Teaching Method
The course will be primarily lecture based. Here the onus of learning will be with the student and
the instructor will be a facilitator. Instead of learning ‘what to do’, the lectures will also use as
examples of real-world phenomenon where a issue or set of issues arises and good and bad
practices are seen. The key to learning this way is to see many examples and many situations and
learning inductively from the different facts concerning the issues at hand around the world.

Evaluation Schema
The Evaluation Schema will be shared soon.

Text Book / Course Package / Other Readings

Main textbook:
Microeconomics by Robert S. Pindyck and Daniel L. Rubinfeld, Pearson India, Ninth edition.
Additional reading:
Microeconomics by Michael Parkin, Pearson India, Ninth edition.
Some possible online resources
https://www.inet.econ.cam.ac.uk/
https://www.aeaweb.org/resources/teachers/online-ed
https://www.coursera.org/browse/social-sciences/economics
https://www.edx.org/learn/economics
https://www.khanacademy.org/economics-finance-domain

Program Competency Goals - IBM

IBM Programme Competency Goals (PCGs) IBM Programme Learning
Objectives (PLOs)
 Students will be able to
1. Understand relevant business
technologies
Technological Agility: Ability to adopt
2. Apply relevant methods to address
1 relevant techniques and tools for better
business issues
business decision making.
3. Use relevant software for business
decision making
4 Understand the interplay between
local and global business issues
Responsible Global Citizenship: Ability
to understand the interplay between local 5. Demonstrate sensitivity towards
2 ethical issues
and global issues and to act with sensitivity
towards ethical and social issues 6. Demonstrate sensitivity towards
social issues
7. Address societal issues
8. Present their ideas with clarity
Effective communication: Ability to 9. Prepare an organized and logical
3 business document
effectively exchange ideas and information
10. Use technology for effective
communication
11. Identify main issues of business
problems
12. Examine information from
Critical Thinking: Ability to identify,
different sources
4 analyse business problems and propose
effective solutions 13. Draw inferences from analysis
14. Evaluate alternatives
15. Summarize and conclude
Leadership: Ability to take initiative, 16. Take initiative
5
inspire and collaborate with others 17. Contribute effectively in groups
18. Understand the dimensions of
entrepreneurship
Entrepreneurial Mindset: Ability to
19. Recognize and Assess business
assess business opportunities, plan and
opportunities
pitch new venture ideas
20. Design and develop a new
6 venture plan

Session Plan
Session Details CLOs Covered
Week 1. Session 1. Introduction: Market and Prices
Objective of the Students will be able to understand:
session  The themes of microeconomics
 What is a Market CLO 1,2,4
 Real versus Nominal Prices
 Why study Microeconomics
Readings Chapter 1

Case Title and Corporate Decision Making: The Toyota Prius, p.39
Number
Pedagogy Lecture/Case Discussion
Week 1 Session 2. The basics of supply and demand
Objective of the Students will be able to understand:
session  Supply and demand curves CLO 1,2,4
 The Market Mechanism
 Changes in Market equilibrium
Readings Chapter 2 (2.1 to 2.3)

Case Title and NA

Number
Pedagogy Lecture/ Questions for review/Exercises
Week 2 Session 3. The basics of supply and demand (contd..)
Objective of the Students will be able to understand:
session  Elasticities of supply and demand
 Short-run versus long-run elasticities CLO 1,2,4
 The effects of changing market conditions
 Effects of Govt Interventions
Readings Chapter 2 (2.4 to 2.7)

Case Title and NA

Number
Pedagogy Lecture/ Questions for review/Exercises
Week 2 Session 4. Consumer behaviour
Objective of the Students will be able to understand:
session  Consumer preferences
 Budget constraints
 Consumer choice CLO1,2,4
Readings Chapter 3 (3.1 to 3.3)

Case Title and Designing new automobiles (I), p. 99

Number Can money buy happiness, p. 103
Pedagogy Lecture/ Questions for review/Exercises
Week 3 Session 5. Consumer behaviour (contd..)

Objective of the Students will be able to understand:

CLO 1,2,4
session  Revealed preferences
  Marginal utility and consumer choice
 Cost-of-living Indexes
Readings Chapter 3(3.4 to 3.6)
Case Title and Designing new automobiles (II), p. 110
Number
Pedagogy Lecture/ Questions for review/Exercises
Week 3 Session 6. Individual and market demand
Objective of the Students will be able to understand:
session  Individual demand CLO 1,2,3,4
 Income and substitution effect

Readings Chapter 4 (4.1-4.2)

Case Title and The demand for housing, p.149
Number The long-run demand for gasoline, p.151
Pedagogy Lecture/ Questions for review/Exercises
Week 4 Session 7. Individual and market demand (contd..)
Objective of the Students will be able to understand:
session  Market demand
 Consumer surplus
CLO 1,2,4
 Network externalities

Readings Chapter 4 (4.3-4.5)

Case Title and Facebook versus Google Plus, p. 158
Number Interview and Experimental Approaches to Demand Determination,
p.163
Pedagogy Lecture/ Questions for review/Exercises
Week 4 Session 8. Production
Objective of the Students will be able to understand:
session  Firms and their production decisions
 Production with one variable input (labor)
CLO 1,2,4
Readings Chapter 6 (6.1-6.2)
Case Title and Labor productivity and standard of living, p. 223
Number
Pedagogy Lecture/ Questions for review/Exercises
Week 5 Session 8. Production (contd..)
Objective of the Students will be able to understand:
session  Production with two variable inputs CLO 1,2,3,4
 Returns to scale
Readings Chapter 6 (6.3-6.4)
Case Title and Returns to scale in the carpet industry, p.233
Number
Pedagogy Lecture/ Questions for review/Exercises
Week 5 Session 10. Cost of production
Objective of the Students will be able to understand:
session  Cost in short run CLO 1,2,4
 Cost in long run
 Short run vs long run scenarios in industries

Dynamic changes in costs: learning curves

Readings Chapter 7 (7.1-7.3)
Case Title and Production cost in the Aluminium smelting industry
Number
Pedagogy Lecture/Presentation
Week 6 Session 11. Cost of production (contd..)
Objective of the Students will be able to understand:
session CLO 1,2,4
Readings Chapter 7 (7.3-7.5)
Case Title and Effects of effluent fees on input choices
Number
Pedagogy Lecture/Presentation
Week 6 Session 12. Profit maximization and competitive supply
Objective of the Students will be able to understand:
session  Perfectly competitive markets: assumptions CLO 1,2,4
 Choosing inputs in short runs/ long runs
 Competitive firms’ short run supply curve

Long run supply curve

Readings Chapter 8 (8.1-8.4)
Case Title and Condominiums vs Cooperatives in the New York city
Number
Pedagogy Lecture/Presentation
Week 7 Session 13. Understanding profit maximization and competitive
supply (contd..)
Objective of the Students will be able to understand: CLO 1,2,3
session  Marginal revenue, marginal cost, and profit maximization
  Shut down conditions

Managerial cost considerations

Readings Chapter 8 (8.5-8.8)
Case Title and Some cost considerations for managers
Number
Pedagogy Lecture/Presentation
Week 7 Session 14. Doing an analysis of competitive markets
Objective of the Students will be able to understand:
session  Gains and losses from Govt policies CLO 1,2,4
 Consumer and producer surpluses
 Efficiencies of competitive markets

Minimum prices
Readings Chapter 9 (9.1-9.3)
Case Title and Market for Human Kidneys
Number
Pedagogy Lecture/Presentation
Week 8 Session 15. Doing an analysis of competitive markets (contd..)
Objective of the Students will be able to understand:
session  Price supports and production quotas CLO 1,2,4
 Import quotas and tariffs

Impact of tax or subsidies

Readings Chapter 9 (9.3-9.6)
Case Title and Tax on gasoline
Number
Pedagogy Lecture/Presentation
Week 8 Session 16. Market Power: Monopoly
Objective of the Students will be able to understand:
session  Monopoly Power

Sources of Monopoly Power CLO 1,2,4

Readings Chapter 10 (10.1 to 10.3)

Case Title and Astra-Merck Price Prilosec, pg 376
Number Elasticities of Demand for soft drinks, pg. 382
Pedagogy Lecture/ Questions for review/Exercises
Week 9 Session 17. Market Power: Monopoly (continued) & Monopsony
Objective of the Students will be able to understand:
session  Social Cost of Monopoly Power

Monopsony Power CLO 1,2,4

Readings Chapter 10 (10.4 to 10.6)

Case Title and Markup Pricing: Supermarkets to Designer Jeans, pg 384
Number The pricing of videos, pg 386
Monopsony Power in US Markets, pg 401
Pedagogy Lecture/Presentation
Week 9 Session 18. Pricing with Market Power
Objective of the Students will be able to understand:
session  Capturing Consumer Surplus CLO 1,2,4
 Price Discrimination

Peak Load Pricing

Readings Chapter 11 (11.1 – 11.3)
Case Title and The economics of coupons and rebates, pg. 422
Number Airline Fares, pg 423
Pedagogy Lecture/Presentation
Week 10 Session 19. Monopolistic Competition and Oligopoly
Objective of the Students will be able to understand
● Monopolistic Competition
session CLO 1,2,4
● Oligopoly
Readings Chapter 12 (12.1 – 12.2)
Case Title and Monopolistic competition in the markets for colas and coffee, p. 469
Number
Pedagogy Lecture/ Questions for review/Exercises
Week 10 Session 20. Monopolistic Competition and Oligopoly
Objective of the Students will be able to understand:
● Price Competition
session CLO 1,2,4
● Competition versus Collusion: The Prisoners’ Dilemma
● Implications of the Prisoners’ Dilemma for oligopolistic
pricing
Readings Chapter 12 (12.3 – 12.5)
Case Title and A pricing problem for Procter & Gamble, p. 481
Procter & Gamble in a prisoners’ dilemma, p. 485
Number
Pedagogy Lecture/Presentation
Week 11 Session 21. Market for Factor Inputs
Objective of the Students will be able to understand:
● Competitive Factor Markets
session
 ● Equilibrium in a Competitive Factor Market CLO 1,2,4
Factor Markets with Monopsony power
Readings Chapter 14
Case Title and The demand for Jet Fuel, p. 550
Monopsony power in the market for baseball players, p. 562
Number
Pedagogy Lecture/Presentation
Week 11 Session 22. General Equilibrium and Economic Efficiency
Objective of the Students will be able to understand:
● General Equilibrium Analysis
session CLO 1,2,4
● Efficiency in Exchange
● Equity and Efficiency
Readings Chapter 16 (16.1 -16.3)
Case Title and The Global market for ethanol, p. 612
Contagion across stock markets around the world, p. 614
Number
Pedagogy Lecture/Presentation
Week 12 Session 23. General Equilibrium and Economic Efficiency
Objective of the Students will be able to understand:
● Efficiency in Production
session CLO 1,2,3
● The Gains from Free Trade
Readings Chapter 16 (16.4 -16.5)
Case Title and iPhone production, p. 635
The costs and benefits of special protection, p. 636
Number
Pedagogy Lecture/ Questions for review/Exercises
Week 12 Session 24: Markets with Asymmetric Information
Objective of the Students will be able to understand: CLO 1,2,4
session  Quality uncertainty and the market for lemons.
 Market signaling

Readings
Case Title and
Number
Pedagogy Lecture/ Questions for review/Exercises
Week 13 Session 25: Markets with Asymmetric Information

Objective of the Students will learn: CLO 1,2,3

session  Moral Hazard
 Principle Agent Problem

Readings Chapter 17 (17.3 – 17.4)

Case Title and
Number
Pedagogy Lecture/ Questions for review/Exercises
Week 13 Session 26: Externalities and Public Goods

Objective of the Students will learn: CLO 1,2,4

session  Externalities
 Ways of correction market failure

Readings Chapter 18 (18.1 -18.2)

Case Title and
Number
Pedagogy Lecture/ Questions for review/Exercises
Week 14 Session 27: Externalities and Public Goods

Objective of the Students will learn:

session  Stock externalities CLO 1,2,3
 Externalities and property rights.

Readings Chapter 18 (18.3 – 18.4)

Case Title and
Number
Pedagogy
Week 14 Session 28: Group Project Presentations. Course Revision
Objective of the Students will learn:
session  To effectively communicate as a group
 To present in a clear and concise manner CLO 1,2,4

Readings
Case Title and
Number
Pedagogy Presentation
Week 15 Session 29-30: Group Project Presentations. Course Revision
Objective of the Students will learn:
session  To effectively communicate as a group CLO 2,3,4
 To present in a clear and concise manner

Readings
Case Title and
Number
Pedagogy Presentation