Qualifier Applications open for May 2026 term , Qualifier Exam Date : July 19, 2026

Diploma

Managerial Economics

This course will explore how markets function. The course aims to provide the dynamics of markets and the outcomes through the relationships between production, costs, and profits under different market settings.

by Dr. L. Prakash Sai

Course ID: BSMS3206

Course Credits: 4

Course Type: Diploma

Pre-requisites: None

Course structure & Assessments

For details of standard course structure and assessments, visit Academics page.

WEEK 1 The economic way of thinking, marginal analysis
WEEK 2 indifference curve, demand, supply, and market
WEEK 3 Elasticity and empirical methods for demand analysis
WEEK 4 Determinants of price elasticity, supply function
WEEK 5 Effect of supply and demand shocks, differentiation and cost leadership
WEEK 6 Technology and production functions
WEEK 7 Cost functions—long run and short run, cost and productivity relationship
WEEK 8 Perfectly competitive market, monopoly
WEEK 9 Monopsony and monopolistic Competition
WEEK 10 Oligopoly, Bertrand and Cournot models
WEEK 11 Asymmetric information, principal agent
WEEK 12 Adverse selection and moral hard

Prescribed Books

The following are the suggested books for the course:

1. J Perloff and J Brander, Managerial Economics and Strategy, Pearson, Second Edition

2. M R Baye and J T Prince, Managerial Economics and Business Strategy, Tata McGraw, Nineth Edition

3. L Froeb, B McCannm, M Shor, and M Ward, Managerial Economics: A Problem-Solving Approach

4. R Pindyck and D Rubinfeld, Microeconomics, Pearson, Nineth edition

About the Instructors

Dr. L. Prakash Sai
Professor, Department of Management Studies, IIT Madras

Dr. Prakash Sai is a Professor of Strategy with Department of Management Studies, IIT Madras. He specializes in the broad domains of Technology Management & Innovation, Strategy & Policy Studies and Technopreneurship. In a career spanning three decades, he contributed to the growth, profitability and sustainability of several firms in public and private sectors through his consulting work and training programs. He served Tata Consultancy Services (TCS) for over a decade in various capacities as Management Consultant, Business Development Manager and Director (Strategic Planning), North America Operations having USD 1.5 billion revenue. He served as a Visiting Faculty at University of Applied Sciences, Hof, Germany and University of Passau, Germany, Nagaoka University of Technology, Japan, Harare Institute of Technology, Zimbabwe and University of Mauritius. He guided 15 Ph.D. theses and 9 MS theses; published research articles in international journals and co-authored a book, entitled: “Total Quality Management in Higher Education”. He holds B.Tech. Mechanical Engineering, M.Tech. Industrial Engineering, from Sri Venkateswara University, Tirupati; and Ph.D. in Technology Management from IIT Madras.

Other courses by the same instructor: BSMS1204 - Management Thought and Practice and BSMS2208 - Macroeconomics